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How many diverse securities are required to eliminate the majority of the diversifiable risk from a portfolio?
Wiki User
∙ 12y ago
recent research has found it would be 50 to 60 stocks
.
Wiki User
∙ 12y ago
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What is the difference between hedge funds and mutual funds?
Mutual funds and hedge funds both pools investor's money into one larger, centrally-managed set of assets. The main difference is in legal structure and regulation. In the US, mutual funds are heavily regulated by the Securities and Exchange Commission (SEC). Because they are unregulated, hedge funds are not open to the general public. The US government only allows high net worth individuals and institutional investors to invest in them. Before 2005, the SEC did not regulate hedge funds at all. Their freedom is now being curtailed. The SEC is now asserting some regulatory power. In the UK, the Financial Services Authority already exercises much more oversight. This is driving hedge funds overseas. In the US, Mutual funds are investment companies that must register with the U.S. Securities and Exchange Commission and are subject to strict regulation under four federal laws: the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940 and the Investment Advisers Act. Hedge Funds are not considered to be investment companies, and are thus excluded under the federal securities laws. This may be because of the private nature of their offerings or the financial means and sophistication of their investors (e.g., investment funds with no more than 100 investors and private investment funds whose investors each have a substantial amount of investment assets - $5 million minimum for some funds under Investment Company Act of 1940). Thus, unlike Mutual Funds Hedge Funds do not have to face: * periodic reports under the Securities Exchange Act of 1934; * regulations on the structure and operation of funds; * NASD rules limiting sales charges and other distribution fees that need to be presented in comparable and standard form (e.g., expense ratios); * restrictions on ability to leverage or borrow against the value of securities in its portfolio, which practically eliminate the ability to buy on margin and sell short; * requirements to value portfolios and price their securities daily based on market quotations; * requirements by law to allow shareholders to redeem their shares at any time; * requirements regarding a fund's portfolio diversification and its distribution of earnings; * NASD oversight of fund advertisements and other sales materials; * the need for majority of independent directors who are responsible for extensive oversight of the fund's policies and procedures.
What is the difference between a holding company and an investment company?
A holding company is a company that owns the outstanding stock of other companies, giving it control over those companies' operations and management. An investment company, on the other hand, is a company that pools money from investors and uses that money to buy securities, such as stocks, bonds, and real estate. The primary business of an investment company is to invest in these securities and manage them to generate income and capital appreciation for the investors. In summary, a holding company acquires and controls other companies, while an investment company pools money from investors to invest in securities. My Recommendation: 𝐡𝐭𝐭𝐩𝐬://𝐰𝐰𝐰.𝐝𝐢𝐠𝐢𝐬𝐭𝐨𝐫𝐞𝟐𝟒.𝐜𝐨𝐦/𝐫𝐞𝐝𝐢𝐫/𝟑𝟕𝟐𝟓𝟕𝟔/𝐝𝐡𝐫𝐮𝐯𝐫𝐚𝐣_𝟔𝟎𝟗𝟏/
The majority of corporations in the US are?
LLC.
How do the majority of people living in Michigan earn a living?
The majority of people living in Michigan earn their living from the land. This might include farming or fishing careers.
Is majority shareholder the same as principal shareholder?
yes, they are
Can you kick your 16 year old pregnant daughter out of your home in California?
The daughter being pregnant does not eliminate the responsiblity of a parent to support their child until they reach the age of majority.
What are the educational requirements for an entry-level position in the securities field?
Brokerage clerks are responsible for the majority of the daily operations and for processing much of the paperwork that is generated. These positions are often considered entry-level jobs with the potential for promotion
What is the difference between hedge funds and mutual funds?
Mutual funds and hedge funds both pools investor's money into one larger, centrally-managed set of assets. The main difference is in legal structure and regulation. In the US, mutual funds are heavily regulated by the Securities and Exchange Commission (SEC). Because they are unregulated, hedge funds are not open to the general public. The US government only allows high net worth individuals and institutional investors to invest in them. Before 2005, the SEC did not regulate hedge funds at all. Their freedom is now being curtailed. The SEC is now asserting some regulatory power. In the UK, the Financial Services Authority already exercises much more oversight. This is driving hedge funds overseas. In the US, Mutual funds are investment companies that must register with the U.S. Securities and Exchange Commission and are subject to strict regulation under four federal laws: the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940 and the Investment Advisers Act. Hedge Funds are not considered to be investment companies, and are thus excluded under the federal securities laws. This may be because of the private nature of their offerings or the financial means and sophistication of their investors (e.g., investment funds with no more than 100 investors and private investment funds whose investors each have a substantial amount of investment assets - $5 million minimum for some funds under Investment Company Act of 1940). Thus, unlike Mutual Funds Hedge Funds do not have to face: * periodic reports under the Securities Exchange Act of 1934; * regulations on the structure and operation of funds; * NASD rules limiting sales charges and other distribution fees that need to be presented in comparable and standard form (e.g., expense ratios); * restrictions on ability to leverage or borrow against the value of securities in its portfolio, which practically eliminate the ability to buy on margin and sell short; * requirements to value portfolios and price their securities daily based on market quotations; * requirements by law to allow shareholders to redeem their shares at any time; * requirements regarding a fund's portfolio diversification and its distribution of earnings; * NASD oversight of fund advertisements and other sales materials; * the need for majority of independent directors who are responsible for extensive oversight of the fund's policies and procedures.
Where do most of the people in the securities field work?
brokerage firms employ the majority of the workers in this industry. Headquarters for these firms are located in New York City, where most of the executives and support personnel work. Mutual fund management companies and regional brokerages
How many companies in Australia?
According to the Australian Companies & Securities Commission (also called ASIC) there were over 1.7 million companies incorporated in Australia at the end of 2009. The vast majority of these were private companies, also called proprietary limited companies.
The majority is or the majority are?
the majority is
Can two directors eliminate the third director in a private limited company?
Directors are chosen by shareholders. Of course, in a private limited company, directors are probably also shareholders. But for two directors to fire a third director, they would have to control the majority of the shares.
The party with more members in the Senate is called the?
majority party
How did some MLAs become ministers?
MLAs can become ministers by being appointed by the Prime Minister or the Premier of their province. Typically, ministers are chosen from the members of the ruling party who have the necessary experience, skills, and expertise to lead a particular government department or portfolio.
Which part of a supreme court decision presents the argument in favor of the courts ruling?
majority opinion
Why was same-sex marriage banned in California?
It was banned on November 5, 2008 because a majority of the electorate voted in favor of a ballot measure that amended the state constitution to eliminate the existing right of same-sex couples to marry.
Who makes the rules under a social contract?
the majority the majority
