Chapter 23
1. Explain why mutual funds are attractive to small investors. How can mutual funds generate returns to their shareholders?
2. How do open end mutual funds differ from closed end funds?
3. Explain the difference between load and no load mutual funds.
6. Describe the ideal mutual fund for investors who wish to generate tax free income and also maintain a low degree of interest rate risk.
9. Explain how the income generated by a mutual fund is taxed when the fund
11. How do money market funds differ from other types of mutual funds in terms of how they use the money invested by shareholders? Which security do MMFs invest in most often? How can an MMF accommodate shareholders who wish to sell their share when the amount of process received from selling new shares is less than the amount needed?
18. Consider the prevailing condition that could affect the demand for stocks, including inflation, the economy, the budget deficit, the Fe’s monetary policy, political condition, and the general mood of investors. Based on current conditions, recommend a specific type of stock mutual fund that you think would perform well. Officer some logic to support your recommendation.
20. Describe private equity funds. How can they improve business conditions? Monday that individual and institutional invests previously invest in stocks is now being invested in private equity funds. Explain why this should result in improved business conditions.