Sunday, May 18, 2008

Sekadar Menghimbau Kenangan Lama 1

Stock Market Index
From Wikipedia, the free encyclopedia

A stock market index is a method of measuring a stock market as a whole. The market can be Canadian stocks, American stocks, Bio-tech stocks, small-cap stocks, growth stocks, or any other market of interest. Many indices are compiled by news or financial services firms and are used to benchmark the performance of portfolios such as mutual funds.

Mutual fund

From Wikipedia, the free encyclopedia

Mutual funds can give investors access to emerging markets

A mutual fund is a professionally managed firm of collective investments that collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities.[1] The fund manager, also known as portfolio manager, trades the fund's underlying securities, realizing capital gains or losses and passing any proceeds to the individual investors. Today, the worldwide value of all mutual funds totals more than $26 trillion in assets.[2]

Since 1940, there have been three basic types of mutual fund investment companies in the United States. Similar funds also operate in Canada. However, in the rest of the world, mutual fund is used as a generic term for various types of collective investment vehicles, such as unit trusts, open-ended investment companies (OEICs), and unitized insurance funds.

Unit Trust


An SEC-registered investment company which purchases a fixed, unmanaged portfolio of income-producing securities and then sells shares in the trust to investors. The major difference between a Unit Trust and a mutual fund is that a mutual fund is actively managed, while a unit investment trust is not managed at all. Capital gains, interest and dividend payments from the trust are passed on to shareholders at regular periods. If the trust is one that invests only in tax-free securities, then the income from the trust is also tax-free. A unit investment trust is generally considered a low-risk, low-return investment. Some investors prefer Unit Trusts to mutual funds because Unit Trusts typically incur lower annual operating expenses (since they are not buying and selling shares); however, Unit Trusts often have sales charges and entrance/exit fees. also called fixed investment trust or participating trust or Unit Investment Trust (UIT).

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