How Does Mutual Fund Work. A Simplified Version

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When large hedge funds use the techniques, often they drive the price down artificially in selling of the stock and minutes later, can develop a quick profit with buy and delivery of the cheaper securities. This is one way a hedge fund investment brings higher income in comparison with the traditional mutual fund.

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The original purpose of something like a hedge fund was to hedge resistant to the market's golf swings. The combination of types of investments provided an equation against falling markets. The modification came as hedge funds became well known. Today, offer you not easy to access . hedge against loss but an edge for bring in.

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