ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Stock refers to a company’s initial offering of shares. A mutual fund is a small piece of ownership in a company. The NASDAQ is a small piece of ownership in a company. IPO refers to a company’s initial offering of shares.
Detailed explanation-2: -The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds. Each share represents an investor’s part ownership in the fund and the income it generates.
Detailed explanation-3: -The Definition of a Stock Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.
Detailed explanation-4: -households own the majority of the mutual fund industry’s $6.965 trillion in assets.