Just a quick question. If OEICs issue shares on the Stock Exchange, how it is that they are priced like unit trusts and not based on demand and supply like investment trusts whose shares are also listed on the Stock Exchange? Thanks for any clarification!
Hi, I think the it about the shares being on the stock exchange may be misleading. Although OEICs issue shares, I dont think they are traded on an exchange like investment trust shares. Shares are managed directly by the issuing company, more like a unit trust, and the shares are not subject to supply/demand volatility.
Thanks Colin. I was admittedly a bit puzzled when the notes said 'like investment trusts, OEICs are companies that issue shares on the London Stock Exchange, and that use the money raised from shareholders to invest in other companies.' Appreciate the reply!
