Open-End Management Company
Barron's Finance & Investment Dictionary:
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Open-End Management Company
investment company that sells mutual funds to the public. The term arises from the fact that the firm continually creates new shares on demand, although an open-end fund may close itself to new investors when its management decides that it is too large. Mutual fund shareholders buy the shares at net asset value and can redeem them at any time at the prevailing market price, which may be higher or lower than the price at which the investor bought.
The shareholder’s funds are invested in stocks, bonds, or money market instruments, depending on the type of mutual fund company. The opposite of an open-end management company is a closed-end management company, which issues a limited number of shares, which are then traded on a stock exchange.
See also exchange-traded funds.
The shareholder’s funds are invested in stocks, bonds, or money market instruments, depending on the type of mutual fund company. The opposite of an open-end management company is a closed-end management company, which issues a limited number of shares, which are then traded on a stock exchange.
See also exchange-traded funds.
| Open-End Lease, Open-End Credit | |
| Open-End Mortgage, Open-Market Committee |
Investopedia Financial Dictionary:
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Open-End Management Company
A company that distributes and redeems securities it issues. The most common open-end management companies are mutual fund companies which sell and redeem shares at the net asset value per share.
Investopedia Says:
This is just a fancy legal name for a mutual fund. An investor in an open-end fund essentially pools his/her money with other investors in order to attain economies of scale, professional management, etc.
This differs from a closed-end fund which has a limited number of shares available. Unlike with open-end funds, an investor in a closed-end fund typically sells his/her shares on the open market to another investor instead of back to the fund company.
Related Links:
Learn about the basics - and the pitfalls - of investing in mutual funds. Mutual Fund Basics Tutorial
Wing it or re-balance? Discover some common strategies to devise a plan and maintain your holdings to relect that plan. Managing A Portfolio Of Mutual Funds
These statistical measurements highlight how to mitigate risk and increase rewards. 5 Ways To Measure Mutual Fund Risk
Learn how to tell if a fund in flux is still a suitable investment. Should You Follow Your Fund Manager?
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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