**Question:**Which type of investment is redeemable only by authorized participants?- Open end mutual fund- Closed end mutual fund- Exchange traded fund- Unit trust**Explanation:**This multiple-choice question is meant to evaluate knowledge about different types of investment funds and their redemption processes. - **Open end mutual fund**: Investors can buy and sell shares directly from the fund at the net asset value. - **Closed end mutual fund**: Shares are traded on stock exchanges and typically are not redeemable directly with the fund. - **Exchange traded fund (ETF)**: Shares can be bought and sold on exchanges. Only authorized participants can redeem directly with the fund, often in large blocks known as creation units. - **Unit trust**: Units are usually redeemable directly by investors.This information will help learners understand the unique characteristics and mechanisms of these investment vehicles.

Analysis of the options given: Open end mutual fund -Open end mutual fund is open to investors i.e.,…

Answered: Which type of investment is redeemable…

Which type of investment is redeemable only by authorized participants? Open end mutual fund Closed end mutual fund Exchange traded fund O Unit trust

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The market value of a mutual fund's assets divided by the number of fund shares outstanding is equal to the A. Load charge B. Net Asset Value (NAV) C. Expense Ratio D. 12b-1 fee
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
1. **Definition of Carried Interests:* - Carried interests are a share of profits that general partners in an investment fund receive as compensation. These interests represent a percentage of the fund's profits and are typically awarded to the fund managers as an incentive to achieve positive returns. The taxation of carried interests involves considerations for both the fund managers and the investors in the fund. 2. **Taxation of Carried Interests:** - The tax treatment of carried interests is a complex process. Typically, fund managers pay taxes on their carried interests at capital gains rates, which are often lower than ordinary income tax rates. This treatment is subject to specific conditions, including holding the investment for a certain period. Investors, on the other hand, may also be subject to tax implications based on their share of profits from the fund. 3. **Impact on Financial Reporting:** - The accounting for tax on carried interests is an essential aspect of…
Master trusts allow investors to Select one: O a. Switch between Funds and/or managers without selling the underlying investments in the trust O b. Buy or sell direct Australian shares. c. Access a range of fund managers. d. All answers are correct. е. Two of the specific statements are correct.
The fund based financial services do not include one of the following: a. Consumer Credit O b. Factoring O c. Insurance o d. Merchant Banking
Identify which of the following is/are types of distributions of Mutual Fund Trust: a. All of the choices b. Capital Distributions c. Capital Gains d. Eligible Dividends X e. Canadian Interest Income

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