11.No-load mutual funds are commonly sold by security brokers and dealers.
12.Load mutual fund shares may be sold back to the fund.
13.Closed-end investment companies’ securities often sell at a discount to their NAV.
14.The major investment of mutual funds is common stock.
15.Hedge funds are typically organized as limited partnerships with the fund manager as the general partner.
16.Hedge funds have been popular diversification investments for small investors.
17.Arbitrage activities of hedge funds tend to increase capital market efficiency.
18.Short-selling activities of hedge funds look for high growth companies.
19.REITs are open-end investment companies that invest in real estate.
20.Total assets of mutual funds exceed those of commercial banks.
21.Due to the ability to hedge, the investors of hedge funds experienced very minor losses in subprime mortgage crisis from 2007 to 2009.
22.One of the benefits investing in hedging funds is some hedge funds are not subject to taxation on fund distributions nor to U.S. estate taxes.
23.Unlike mutual funds that their leverage is limited by regulation, hedge funds and REITs often have high leverages.