Which of the following is not a function of investment companies- Inve.docx
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Which of the following is not a function of investment companies? Investors' claim in proportion to amount invested. Diversification and divisibility Professional management Record keeping and administration Which of the following is/are not true about Unit Investment Trusts? At the termination date, all principal payments of the trust are either paid out to investors or rolled over to form another portfolio holding. A trust needs a sponsor (usually brokerage firm) that buys a portfolio and deposits into it. Shares of trust are called redeemable trust certificates. They are redeemable because investors can sell back to the trust at its NAV. The sponsor of a trust always sells shares in the trust at a premium to the cost of acquiring the underiying assets. .
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