ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They represents ownership of a corporation. Stockholders own a share of the company and are entitled to a share of the profits as well as a vote in how the company is run.
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A mutual fund is an “IOU, “ certifying that you loaned money to a government or corporation and outlining the terms of repayment.
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Professionally managed portfolios made up of stocks, bonds, and other investments.
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None of the above
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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: -Professional management Fund managers identify which securities to buy and sell through individual security evaluation, sector allocation, and analysis of technical factors. For those who have neither the time nor the expertise to oversee their investments, this can potentially be invaluable.
Detailed explanation-3: -Mutual fund: An investment vehicle that allows you to invest your money in a professionally-managed portfolio of assets that, depending on the specific fund, could contain a variety of stocks, bonds, or other investments.
Detailed explanation-4: -What is a managed portfolio or what are portfolio management services? Generally, a managed portfolio is one in which a professional manages investments on a client’s behalf. Typically, the client will pay a flat or sliding-scale fee based on the portfolio size.
Detailed explanation-5: -Balanced funds are mutual funds that invest money across asset classes, including a mix of low-to medium-risk stocks and bonds.