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Meaning / Definition of

Budapest Stock Exchange (BSE)

Categories: Stocks, Investing and Trading,

financial institution in Budapest, Hungary, whose "main goal is to become the financial centre and primary trading venue of Hungarian securities, and to successfully take part in the competition for issuers." Its four main activities are (1) listing services, (2) trading services, (3) dissemination of market information, and (4) product development.Four years after originally opening as the Hungarian stock exchange on January 18, 1864, in Pest, the exchange gained the Grain Hall and became the Budapest Stock and commodity exchange (BSCE). The government dissolved the BSCE after World War II, claiming its assets as state property. The BSE reopened on June 21, 1990, with forty-one members and one equity, IBUSZ, the budapest stock exchange. From 1990 until 1995, physical trading on the floor had partial electronic support. In 1995, trading on the floor and in a remote trading system became concurrent and stayed that way until November, 1998 when the MultiMarket Trading System (MMTS), which relied completely on remote trading, was put in place. By September, 1999, physical trading on the floor ceased. The BSE has been a subsidiary of the CEESEG AG holding company since January 2010.

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Definition / Meaning of

Fund Of Funds (FOF)

Categories: Finance,

A fund of funds is a pooled investment, such as a mutual fund or a hedge fund, whose underlying investments are other funds rather than individual securities. Despite some major differences, what all funds of funds have in common is an emphasis on diversification for its potential to reduce risk without significantly reducing return. They're also designed to simplify the investment process by offering one-stop shopping.Many mutual fund FOFs are asset allocation funds and typically include both stock and bond funds in a particular combination that the FOF manager has chosen to meet a specific objective. A mutual fund FOF may select all of its funds from a single fund family or it may choose funds offered by different investment companies.A hedge fund FOF, which owns stakes in other hedge funds, allows investors to commit substantially less money to gain exposure to this investment category than it would cost to invest in even one fund.A major drawback with all funds of funds is that the fees tend to be higher than you would pay owning the underlying funds directly.

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