Co-produced by Stanford Chemist. This publication was originally released on September 29th, 2019.
Closed-end funds and open-end funds offer investors an opportunity to pool assets together and purchase several underlying holdings, helping to mitigate the risk that is presented in individual company stock. Both investment opportunities are also regulated under the Investment Company Act of 1940. This act helped regulate and set standards for both of these organizations. Additionally, with the Securities Act of 1933, provided more transparency and stability to these vehicles. Along with closed and open-ended funds, unit investment trusts