What Are the Types of New Products That a Firm

question 67

Essay

What are the types of new products that a firm can introduce? What are the problems associated with introducing a truly innovative product? What are the necessary conditions to create a radically innovative product?

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Definitions:

NAV

Net Asset Value (NAV) represents the per-share market value of all the securities held by a mutual fund, ETF, or similar investment vehicle, calculated by subtracting the fund's liabilities from its assets and dividing by the number of shares outstanding.

Income Distributions

Payments made to investors from the income generated by the assets within a fund or investment, such as dividends or interest payments.

Capital Gain Distributions

Payments made to investors of profits from the sale of securities within a portfolio, often associated with mutual funds.

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.