BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BANKING AND INSURANCE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Equity Funds:Funds that invest in stocks
A
True
B
False
Explanation: 

Detailed explanation-1: -Equity funds invest primarily in shares of companies and related securities like derivatives (i.e. futures, options) which trade in the stock market. The primary objective of investing in stocks is capital appreciation along with which stocks may pay dividends which provide income to investors.

Detailed explanation-2: -An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds. Stock mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography.

Detailed explanation-3: -A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.

Detailed explanation-4: -Equities are the same as stocks, which are shares in a company. That means if you buy stocks, you’re buying equities. You may also get “equity” when you join a new company as an employee. That means you’re a partial owner of shares in your company.

Detailed explanation-5: -Equity funds are mutual funds that invest only in common stock. They offer the biggest returns but also the highest risk.

There is 1 question to complete.