Page 116 - PRIAA Glossary
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MULTI-SERIES ACCOUNTING
An accounting procedure used when a fund manager issues multiple series of shares for the fund, which are not necessarily priced at the same net asset value (NAV).
MUTUAL FUND
An investment vehicle managed by a fund manager where the assets to invest are contributed by a variety of investors. Mutual funds generally target a specific sector of the market, where the fund manager acquires diversified positions within that sector to earn a return. Mutual funds are regulated by the SEC which enforces significant rules in the management and operation of the funds.
MUTUAL TERMINATION CLAUSE
A bilaterally agreed clause that allows both counterparties to a transaction to terminate the trade early under certain defined circumstances. For example, a credit rating downgrade of one counterparty below a certain threshold.
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