Mutual funds pool money from investors to purchase securities. Main types include money market, bond, stock, and hybrid funds. Open-end funds trade daily at net asset value. Unit investment trusts (UITs) trade once at creation
Apple leads with $3.029 trillion market cap and best 10-year annualized return. JP Morgan offers highest shareholder yield despite 40% Q4 2022 decline. Walmart maintains stability despite high P/E ratio. Procter & Gamble shows strong profit margins despite rising costs
Management fee is charged by investment managers for overseeing funds. Fees typically range from 0.10% to over 2% of assets under management. Fee structures vary by fund type, with mutual funds typically charging 0.5%
Financial markets encompass all securities trading venues, including stock, bond, forex, and derivatives. These markets are crucial for the smooth functioning of capitalist economies. They facilitate the allocation of resources and create liquidity for businesses
OTC markets facilitate direct securities trading between participants. No physical trading floor, operates electronically or over phone. Less stringent listing requirements than major exchanges. Typically have wider bid-ask spreads and lower liquidity
OTC market trades securities through broker-dealer networks instead of exchanges. Companies can trade OTC when they don't meet exchange listing requirements. OTCQX, OTCQB, and Pink Open Market are main market tiers