Net Asset Value (NAV)
Reflects the closing market value of all the securities in the funds' portfolio plus any interest or dividend income received on the securities in the portfolio. Net Asset Value is presented on a per share basis, which requires the total NAV to be divided by the number of fund shares outstanding.
Breakpoints
When an investor receives a reduced sales charge based on a quantity investment.
Managed Companies: Open End
Also called Mutual Funds, they issue only redeemable shares (no secondary market).
Managed Companies: Closed End
They issue shares once, which are then publicly traded in the secondary market.
Offering Price formula
Offering Price = Net Asset Value (NAV)/(100% - Sales Load %)
Investment Company
A financial institution principally engaged in investing in securities. Investment companies pool the money of investors and invest the funds in securities, attempting to achieve a stated goal.
Dollar Cost Averaging
Purchasing a mutual fund by investing a fixed dollar amount at set intervals.
Dollar Cost Averaging
Purchasing equal dollar amounts of a specific security at regular pre-established time intervals.
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