Investment Company Securities

Investment company securities combine product structure, pricing, expenses, disclosure, and sales-practice rules. This chapter keeps the material in a product-first order: mutual funds, closed-end funds, ETFs, UITs, and then the regulatory framework that ties the category together.

That arrangement makes comparison easier. Series 7 questions often test how one pooled product differs from another in trading method, redemption feature, fee treatment, or regulatory status.

In this section

• Mutual Funds
  Review mutual-fund structure, share classes, pricing, and the main fund types tested on the Series 7.
• Closed-End Funds
  Understand how closed-end funds trade, how premiums and discounts arise, and where risks differ from open-end funds.
• Exchange-Traded Funds
  Review ETF structure, creation and redemption, trading mechanics, and core exam distinctions.
• Unit Investment Trusts
  Understand UIT structure, fixed portfolios, sales features, and how UITs differ from other fund products.
• Investment Company Regulation
  Review the Investment Company Act of 1940, prospectus disclosure, fees, and sales-practice rules.