This would mean a redemption of shares at regular intervals, and could lead to the fund's elimination.

Some vehicles are designed to have a limited term with enforced redemption of shares or units on a specified date.

The figure includes sales of mutual fund shares to the public, less redemptions of shares.

The system, of course, is set up to provide checks and balances other than pitched battles and mass redemptions of shares.

"There are a lot of things about liability and redemption of shares, for example, that cannot be handled in the profile document," Mr. Feigin said.

Indeed, redemptions of shares in Emerging Growth soared in the second half of the year, to $429 million, compared with $207 million in the first half.

The trust had frozen redemptions of shares in the fund last fall after a stampede by worried investors drained it of $700 million; the freeze was later relaxed.

A private company can, subject to any restriction or prohibition in the articles, pass a special resolution to finance a purchase or redemption of shares out of capital.

Many believe that Long-Term's near-collapse and effective takeover by big banks and brokers will translate into increased client nervousness and rising redemptions of shares at other firms.

Main Form: SH02 - Notice of consolidation, sub-division, redemption of shares or re-conversion of stock into shares (PDF 405Kb)

A 2 percent fee will be charged on the redemption of shares not held for at least a year, and the fund retains the right to pay the proceeds of large redemptions "in kind," with securities in the fund's portfolio.