Exchange Fund

Exchange Fund
A stock fund that allows an investor to exchange his or her large holding of a single stock for units in a portfolio. Exchange funds provides investors with a easy way to diversify their holdings, while deferring any taxes from capital gains.

Also known as a "swap fund".

Because an investor swaps shares with the fund, no sale actually occurs. This allows the investor to defer the payment of capital gains tax until he or she sells the fund's units.

There are both private and public exchange funds. The former deals with companies that are not publicly traded, providing investors with a way to diversify private equity holdings. The public funds offer investors portfolio shares containing publicly traded firms.


Investment dictionary. . 2012.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Exchange fund — An Exchange Fund or Swap Fund is a mechanism specific to the U.S., first introduced in 1999 that allows holders of large amount of a single stock to diversify into a basket of other stocks without directly selling their stock. The purpose of this …   Wikipedia

  • exchange fund — (also known as swap fund) investment vehicle introduced in 1999 that appeals to wealthy investors with large holdings in a single stock who want to diversify ( diversification) without paying capital gains taxes. These funds allow investors to… …   Financial and business terms

  • Exchange Traded Fund — Saltar a navegación, búsqueda Un Exchange Traded Fund (ETF por sus sigla en inglés), o fondo negociable en el mercado, es un fondo que permite tomar posiciones sobre un índice. El mercado de estos productos supone, según los especialistas de BFS …   Wikipedia Español

  • exchange traded funds — (ETFs) Collective investment vehicles which track indices. + exchange traded funds USA Also known as ETFs. A pool fund invested with a stated investment objective, for example, a tracker fund f …   Law dictionary

  • exchange-traded funds — (ETFs) Collective investment vehicles which track indices. + exchange traded funds USA Also known as ETFs. A pool fund invested with a stated investment objective, for example, a tracker fund for the energy sector or geographical area. Shares… …   Law dictionary

  • Fund.com — Inc. (OTCBB: FNDM.OB) is a publicly traded Internet company operating in the financial services, product development, licensing and publishing sectors, based in New York, NY. The company serves the needs of financial institutions, investors and… …   Wikipedia

  • exchange-traded fund — exchangeˈ traded fund noun (finance) A type of investment fund that is administered so as to achieve the same return as a particular stock market index (abbrev ETF) • • • Main Entry: ↑exchange …   Useful english dictionary

  • Exchange Traded Note — Exchange Traded Notes (ETN) zählen wie Exchange Traded Funds (ETFs) und Exchange Traded Commodities (ETCs) zur Gruppe der Exchange Traded Products (ETP). Das in diesen Produkten verwaltete Vermögen ist in den vergangenen Jahren stark angestiegen… …   Deutsch Wikipedia

  • Exchange Traded Commodities — (ETC) sind börsengehandelte Wertpapiere, die Anlegern eine Investition in die Anlageklasse Rohstoffe (engl.: Commodities) erlauben. Es handelt sich um eine Sonderform von Zertifikaten, genauer um unbefristete, besicherte Schuldverschreibungen des …   Deutsch Wikipedia

  • Exchange-traded fund — (ETF) индексный фонд, паи которого обращаются на бирже. Этот биржевой инструмент получил широкое распространение на Западе, но пока отсутствует на российском рынке из за препятствий в законодательстве. Структура ETF в точности повторяет структуру …   Википедия

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”