The law requires that at least 40 per cent of the directors of all regulated investment companies must be persons who are neither officers nor investment advisers of the company. Although those identified with investment banking or sponsor firms have been prominent as board members, in recent years a number of important industrialists and bankers, as well as economists, have been elected directors of investment companies. The income which a shareholder may expect to receive is determined by the return obtainable from securities owned. Except for specialty or balanced funds, the dominant factor is the average return on common stocks. Unless a portfolio is heavily concentrated in one or two groups, or the securities chosen have done far better than the market as a whole, it will be difficult to exceed the average return on industrial common stocks of the largest companies. This, in fact, is in the nature of a ceiling, since expenses must be deducted before dividends are paid.


For Pro Secrets and Strategies on all Aspects of Commodity Future Day Trading, visit Commodity Options Trading