Mutual-fund Intermediaries

Kevin Dowd
Additional contact information
Kevin Dowd: Sheffield Hallam University

Chapter 6 in Competition and Finance, 1996, pp 130-139 from Palgrave Macmillan

Abstract: Abstract A mutual fund can be defined as a financial intermediary that issues its own liabilities and uses the proceeds to buy income-earning assets, but issues only one kind of liability (see, e.g., Glasner, 1987; Cowen and Kroszner, 1989; and Wicker, 1988). A mutual fund therefore differs from a broker in that it holds assets and issues liabilities as part of its intermediary function; it also differs from a bank in that it issues only a single class of liability — which, since it is a claim to the fund’s residual income, can usually be regarded as a form of equity — while a bank issues at least two types of liability, namely, debt and equity. Alternatively, a mutual fund can be defined as an investment company that invests deposited funds in a portfolio of investments, but is set up in such a way that shareholders (or residual claimants) and depositors are identical (see, e.g., Ippolito, 1992, 831).

Keywords: Mutual Fund; Share Price; Fund Manager; Marketable Asset; Asset Portfolio (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-24856-8_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349248568

DOI: 10.1007/978-1-349-24856-8_6

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().