A management investment company that issues new shares on demand when people buy them. The shares are bought at net asset value and may be redeemed back to the management company at any time at the current market price. Commonly called a "mutual fund", the type of vehicle that the shareholder's funds are invested in is dependent on the type of fund and its objectives.
A fund that invests primarily in dividend-paying common stocks on which call options are traded on national securities exchanges. These funds seek high current return consisting of dividends, premiums from selling options, net short-term gains (including those from the exercising of options) and any profits from closing purchase transactions.
A combination of securities. A mutual fund's well-diversified portfolio lowers investment risk.
An official document that each investment company must publish, describing the mutual fund and offering its shares for sale. It contains information required by the Securities and Exchange Commission including fees and expenses of the fund, past performance and how to buy and redeem shares.