FundRobot » Best Funds » (Stock fund)Could you tell me what it means?

Reply
Old   #1 (permalink)
 
Posts: 2,646
Default (stock fund)could you tell me what it means

the shareholders are the investors

Mary500 is offline   Reply With Quote
Old   #2 (permalink)
 
Posts: 2,672
Default (stock fund)could you tell me what it means

Only the shareholders - the owners of the shares (investors) share in the gains and losses. The operators always "make" money by charging fees - operational fees - e.g. management fees, 12b-1 fees for "marketing and distribution", etc. These types of fees divided by the total asset value is known as the expense ratio.
Sarah69 is offline   Reply With Quote
more..
Old   #3 (permalink)
 
Posts: 2,611
Default (stock fund)could you tell me what it means

The investors are the from individuals and institutional investors. The fund owns the shares and the investors own shares in the fund. As the NAV of the fund goes up and down investors share in gains and losses. Dividends if the stocks in the fund pay them are passed on to investors. The fund makes money by charging a fee to investors for managing the fund.
JohnyZone is offline   Reply With Quote
Old   #4 (permalink)
 
Posts: 2,600
Default (stock fund)could you tell me what it means

Many choose mutual funds as a convenient way to buy securities. Each mutual fund pools money from individual and institutional investors, and that fund invests in a selection of securities that are handpicked to suit its objectives.

All shareholders of a fund share proportionately in the fund's gains or losses. Mutual funds are required by the Securities and Exchange Commission (SEC) to provide a prospectus, which discusses a fund's objective, fees, and services, as well as other detailed information.

=========================================================================
"All shareholders of a fund share proportionately in the fund's gains or losses"
(The first sentence in the second paragraph)
Could you please tell me who the "shareholders" here in this context are?

First I thought it was an investor and an fund operator but then I started get confused..
Is it only the investors? or does it mean both the investor and the operator?

I would appreciate your answer.

Thank you!
Cash754 is offline   Reply With Quote
Reply

Bookmarks

Thread Tools