ABSTRACT
INTRODUCTION In the previous chapter, the two main types of fi nancial markets (money and capital markets) were discussed, and the ways that securities are traded in these markets, the primary and the secondary, were explained. Furthermore, we categorized investing into two main types, direct and indirect, and examined direct investing. In this chapter, we discuss indirect investing, which takes place when investors buy shares of (investment) companies that manage all sorts of securities on their behalf. Indirect investing is a very important alternative to direct investing and has gained tremendously in popularity during the last 20 years or so.
