Open-end Management Company Definition | Meaning Of Open-end Management Company In Online Law Dictionary

Definition Of Open-end Management Company:

A company that distributes andredeems securities it issues.

The most common open-end management companies aremutual fund companies which sell and redeem shares at the netasset value per share.This is just a fancy legal name for a mutual fund. An investor in an open-endfund essentially poolshis/her money with other investors in order to attain economies of scale, professional management, etc. This differs from a closed-end fundwhich has a limited number of shares available. Unlike with open-end funds, an investor in a closed-end fund typically sellshis/her shares on the open market to another investor instead of back to the fund company.

Browse Law Terms By First Letter:

Home | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z |