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INVESTMENT COMPANIES

INVESTMENT COMPANIES Direct Investment: When the person invest his money in different securities own behalf is called direct investment. Indirect Investment: When a person invest his money through different investment companies that investment is called indirect investment. What is investment companies? The companies who collect the money from different investors and develop portfolios for them. What is portfolios? The investment in different securities is called portfolios. Example: suppose the company have 100000 and companies invest in differ securities pepsi             coke                 lucky 50000          20000               30000 to reduce the risk invest in differ securities. TYPES OF INVESTMENT COMPANIES Open-ended companies Close-ended Companies UIT (unit investment trust) Open-ended companies: redeemable sec...