What are the chief differences between an open-end trust and closed-end trust?
CAR-UN.to has not long converted from a closed-end Trust to open-end Trust. The stocks price is currently the lowest its been within the 52 week range. Is this conversion to blame?Answers: Open-end routine the fund company can (and the obligation to) redeem shares (i.e, you turn within shares and they buy them from you) out of the fund's holdings. As money comes into the fund or leaves the fund, the total number of shares increases or decreases.
Closed-end mode that there is a fixed number of shares. The simply way to draw from your money back is to market your shares to someone else -- and the only bearing to purchase shares is to buy from someone else.
Closed-end funds typically trade at a discount -- i.e., the share price on the market is smaller amount than that share's portion of the total assets. So converting from closed-end to open-end is usually beneficial. I do not know the situation of CAR-UN, but presumably it was trading at a discount since the board approved to make the conversion. So I would own expected the share price to go up -- it doesn't nouns like the drop can be attributed to the conversion.
When interest rates are lowered, what effect does that hold on a bank profits? Enlighten me.?
I am studying small banking stocks, and want to see what this climate will do to them to evaluate risk vs. the price built into them already (or the absence there of, for now)contained by general i want to have a handle on the above question. If you work for a hill that would be great to hear from you. All are welcome.
Answers: When the Fed cuts it help smaller banks even more consequently larger ones because smaller ones generally enjoy more mortgage exposure in their local areas.
A lower rate funds there is a bigger spread between what they compensate out and take surrounded by, so their profits increase. The opposite is true when rates run up.
Lower interest rates allows Banks to get their money cheaper and they within turn can extend more loans less expensively.
Additionally, if they enjoy issued Callable bonds, they may be able to appointment in those more expensive bonds and reissue them at a lower rate.
As to the overall risk etc.. sorry i can't answer that section.
What is the best savings account for a child in NY NJ area?
Answers: Roth IRA in your name with your child as beneficiary
Invest in something like CGMFX +79% in '07, excellent track record over last 10 years, made money during early 2000's down years...
a thing called minor account.. where the parent is the head person on the account but the kid name is on there.. the kid can put in money but can not take it out, only the parent can!! sry i dont member the name!!