Mutual Funds, Pension Funds, Insurance Companies, Finance Companies参考.ppt

Mutual Funds, Pension Funds, Insurance Companies, Finance Companies, and Other Financial Institutions ? Learning Objectives ? To explore the many roles played by mutual funds, pension funds, insurance companies, finance companies, mortgage banks, and security dealers. To discover the different services they offer. To examine their principal sources and uses of funds. To understand the key problems they face today. Mutual Funds (Investment Companies) Mutual funds, or investment companies, direct the savings of individual investors into bonds, stocks, and money market securities. A small saver who buys mutual fund shares gains opportunities for capital gains and indirect access to higher yielding securities that can be purchased only in large blocks, and yet still enjoys price stability, low risk, and high liquidity. Mutual Funds (Investment Companies) Investment companies first developed in the U.K., and then made their appearance in the U.S. in 1924 as a vehicle for buying and monitoring subsidiary corporations. Since then, the traditionally stock-investing industry has seen many innovations – bond funds, money market funds, index funds, global funds, vulture funds, small/mid/large-cap investment companies, and hedge funds. Mutual Funds (Investment Companies) Investment companies have a favorable tax situation – they pay no federal taxes on income generated by their security holdings, provided their earnings flow through to their customers. Mutual Funds (Investment Companies) Open-end investment companies, or mutual funds, buy back (redeem) their shares any time the investor wishes, and sell shares in any quantity demanded. The price of each open-end company share is equal to the net asset value of the fund – that is, the difference between the values of its assets and liabilities divided by the volume of shares issued. Mutual Funds (Investment Companies) Closed-end investment companies sell only a specific number of ownership shares, which usually trade on an exch