open-end

Examples of open-end in the following topics:

• Market Actors

  • While there is no legal definition of mutual fund, the term is most commonly applied only to those collective investment vehicles that are regulated, available to the general public, and open-ended in nature.
  • There are three types of U.S. mutual funds: open-end, unit investment trust, and closed-end.
  • The most common type, the open-end mutual fund, must be willing to buy back its shares from its investors at the end of every business day.
  • Exchange-traded funds are open-end funds or unit investment trusts that trade on an exchange.
  • Open-end funds are most common, but exchange-traded funds have been gaining in popularity.

• Investment Institutions

  • Mutual fund companies have different strategies and characteristics, and well-known mutual fund companies include Fidelity, Vanguard, and Dreyfus.Mutual fund companies develop strategies where they only buy stock in certain industries, large companies, or foreign company's stock.Furthermore, the mutual fund company may issue a fixed number of shares to the fund that we call closed-end mutual funds.Then investors may buy and sell these shares inover-the-counter markets, just like stock.Thus, the mutual fund company does not buy its shares back for closed-end mutual funds.A mutual fund company may offer another alternative called open-ended mutual funds.Mutual fund company can buy back shares to the fund, and the price of the shares becomes tied to the value of the stock in the fund.Finally, the mutual fund managers use two methods to earn profits.First, fund managers charge management fees for no-load funds, usually 0.5% of asset value.For the second method, the fund managers charge a commission for selling or purchasing of shares for load funds.The load reflects the commission that lowers the fund's value.

• Dollar Returns

  • The dollar return of a security is the difference between the initial and ending value.
  • Finding the dollar return for securities that trade in open markets is a matter of finding the difference in price from year to year.
  • At the end of year 1, it is worth $105, which is $5 more than $100 (its value at the beginning of year 1), so the dollar return is $5.
  • The capital value at the end of year 2 is $110.25, which is $5.25 more than at the end of year 1, and $10.25 more than at the beginning of year 1.

• Advantages of Leasing

  • Lease payments are considered expenses rather than assets, which can be set off against revenue when calculating taxable profit at the end of the relevant tax accounting period.
  • In some cases, a lease may be the only practical option; for example, a small business may wish to open a location in a large office building within tight location parameters.
  • Leasing may provide more flexibility to a business which expects to grow or move in the relatively short term, because a lessee is not usually obliged to renew a lease at the end of its term.

• Time Lags and Targets

  • The Fed uses its tools, open-market operations, discount rates, and reserve requirements, to influence indirectly its policy goals.
  • Thus, a government knows the economy is in a recession by the end of the third quarter.
  • When the Fed uses open-market operations, changes discount policy, or alters reserve requirement, the Fed's monetary policy has an immediate impact on the federal funds rate and non-borrowed reserves.

• Federal Open Market Committee

  • A defensive transaction is the Fed uses open-market operations to offset fluctuations in bank reserves.
  • The Fed has four reasons why open-market operations are its most popular and important tool.
  • Second, open-market operations are very flexible.
  • Finally, the Fed can implement open-market operations very quickly.
  • Many people scrutinize the Fed, and they read the Fed's directives for its open-market trading desk.

• Types of Exchange Hedges: Forward, Money Market, and Future

  • In order to collect or pay any overnight interest due on these foreign balances, at the end of every day institutions will close out any foreign balances and re-institute them for the following day.
  • Forwards also typically have no interim partial settlements or "true-ups" in margin requirements like futures – such that the parties do not exchange additional property securing the party at gain and the entire unrealized gain or loss builds up while the contract is open.

• Bond Prices in an Open Economy

  • An open economy is a country allows goods, services, and financial securities to flow freely in or out of a country.
  • We assumed the country is a small open economy because this country is too little to influence the world's real interest rate.

• The European Central Bank

  • We discuss the crisis at the end of the chapter.
  • The Executive Board implements monetary policy and manages the day-to-day operation of the ECB, similar to the Federal Open Market Committee (FOMC).

• Open-Market Operations

  • This chapter introduces the Federal Reserve's three significant tools for conducting monetary policy: open-market operations, discount policy, and reserve requirements.
  • Moreover, the Fed can use Open-Market Operations, Discount Policy, and Reserve Requirements to implement a monetary policy.
  • Open-Market Operations are the Fed's purchase and sale of U.S. government securities, and its most important tool.
  • Open-market operations have the same effect if the Fed purchased any short-term, liquid securities.
  • Noticing one thing, open-market operations affect the interest rates because the T-bill is a short-term credit instrument.