BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS ECONOMICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
organization that pools funds of individual investors to buy a large number of different stocks or other financial assets are called
A
1.mutul funds
B
2.stock market
C
3. insurance company
D
4.none of the above
Explanation: 

Detailed explanation-1: -A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities.

Detailed explanation-2: -A mutual fund is an investment company that pools money from many investors and invests the combined holdings in a single portfolio of securities that may include stocks, bonds, other securities and cash and cash alternatives, such as Treasury Bills, certificates of deposit (CDs) and money market funds.

Detailed explanation-3: -Pooled funds are investment vehicles such as mutual funds, commingled funds, group trusts, real estate funds, limited partnership funds, and alternative investments. The distinguishing feature of a pooled fund is that a number of retirement boards or investors contribute money to the fund.

Detailed explanation-4: -Mutual funds let you pool your money with other investors to “mutually” buy stocks, bonds, and other investments. They’re run by professional money managers who decide which securities to buy (stocks, bonds, etc.) and when to sell them. You get exposure to all the investments in the fund and any income they generate.

Detailed explanation-5: -Mutual Funds-A More Diversified Option One way to get past this is for an investor to buy a share in a mutual fund, which is a pool of money from many investors. Mutual funds may invest in stocks, bonds or other securities, a combination of these, depending on the portfolio, or a selection of funds.

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