The risk associated with non-diversified portfolios that there may be a limited number of companies each representing a larger percentage of the portfolio and, if adversely effected by some event, each would have a greater adverse effect on the portfolio than on a portfolio where assets are diversified among a larger number of companies. The mutual fund is the buyer and seller unlike closed-end companies where the securities trade on an exchange and the public is considered to be both buyer and seller. The amount paid for asset maintenance or the cost of doing business. Corporate and fund earnings are distributed after deducting for operating expenses. The risk of missing out on an investment opportunity because the assets necessary to take advantage of it are tied up in other investments.
Call options are the right to buy the asset, and put options are the right to sell the asset.
Both calls and puts may be bought and sold. If the right is not exercised, the option expires. Option sellers are also known as writers. A covered call is secured by a position in the underlying asset. A naked or uncovered call is not backed by a security position.