Investments, tenth edition

    1.   Unit investment trusts, closed-end management companies, and open-end management compa-

nies are all classified and regulated as investment companies. Unit investment trusts are essen-

tially unmanaged in the sense that the portfolio, once established, is fixed. Managed investment 

companies, in contrast, may change the composition of the portfolio as deemed fit by the portfo-

lio manager. Closed-end funds are traded like other securities; they do not redeem shares for their 

investors. Open-end funds will redeem shares for net asset value at the request of the investor.