The manager of the Japan Equities Fund is faced with an increase in "hot money" moving quickly in and out of the Fund. This short term trading is an attempt to take advantage of the difference between the closing times of the Tokyo and New York Stock Exchanges. The CFO of the fund manager...

This note is an excerpt from Professor Bob Pozen's book "The Mutual Fund Business" and is an introduction to mutual funds, contrasted with commercial banks.Learning Objective:To provide students with an introduction to mutual funds