eir shares over stock market and as they invest and achieve returns, you get them in the form of capital gains and/or dividends. In case company goes does you loose it all. Also you can't get all your money of the investment fund if you don't find a buyer and this is the main difference between investment funds and mutual funds.
Mutual funds are also companies, but you don't buy their shares, you buy their points. You always know how much each point is worth and as the fund makes some returns, the value of your point goes up. The best part of mutual funds is, that you can get money out anytime you want. You don't have to seek the buyer for your points, you just have to ask them to pay you out. In this view mutual funds are much better than investment funds, but because of the need for liquidity they cannot take on all investments making their returns a little smaller then returns of investments funds.
5. Regulations of financial institutions
Financial institutions in most countries operate in a heavily regulated environment as they are critical parts of countries 'economies. Regulation structures differ in each country, but typically involve prudential regulation as well as consumer protection and market stability. Some countries have one consolidated agency that regulates all financial institutions while other have separate agencies for different types of institutions such as banks, insurance companies and brokers.
Countries that have separate agencies include the United States, where the key governing bodies are the Federal Financial Institutions Examination Council (FDIC), Office of the Comptroller of the Currency - National Banks, Federal Deposit Insurance Corporation (FDIC) State "non-member" banks, National Credit Union Administration (NCUA) - Credit Unions, Federal Reserve (Fed) - "Member" Banks, Office of Thrift Supervision - National Savings & Loan Association, State governments each often regulate and charter financial institutions.
Countries that have one consolidated financial regulator include United Kingdom with the Financial Services Authority, Norway with the Financial Supervisory Authority of Norway, Hong Kong with Hong Kong Monetary Authority and Russia with Central Bank of Russia. br/>
The list of literature
1) # "#"> # "#"> Http://investorwords.com/
