Financial dictionary

A management fee is a fee charged by investment or management companies for managing an investment fund or portfolio. This fee covers the costs of managing and overseeing investments, including analysis, asset selection, and performance monitoring. It is typically charged as a percentage of the assets under management, either annually or quarterly.

MBO (management buyout) is a process in which the current managers of a company acquire a controlling stake or buy out the company they work for. This process allows the managers to take ownership and control of the company, often with the goal of streamlining operations, increasing value, or maintaining strategic independence. MBOs are often financed through a combination of the managers' own equity and external funding, such as bank loans or venture capital investments.

A mutual fund is an investment fund that gathers funds from various investors and invests them in a diversified portfolio of assets such as stocks, bonds, commodities, or other investment instruments. Investors are issued shares of the fund, which represent their share of the total assets of the fund. Mutual funds are managed by professional managers who decide on the investment strategy and selection of assets. There are different types of mutual funds, including open-end and closed-end funds, which differ in terms of trading methods and liquidity. Mutual funds provide investors with the opportunity to achieve diversification and professional management of their investments.