John Is Raising Money on a Crowdfunding Site,and in Return

question 38

True/False

John is raising money on a crowdfunding site,and in return for contributions,offers to let the contributor purchase prelaunch product.John is using a patronage model of crowdfunding.

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Definitions:

Mutual Funds

Financial investment strategies funded by contributors, trading in diversified assets and overseen by professional administrators.

Institutional Investors

Organizations or entities, such as pension funds, insurance companies, and endowments, that invest large amounts of money into securities and real estate.

Asset Allocation

The process of dividing investments among different asset categories, such as stocks, bonds, and cash, to optimize risk and return.

Equities

Financial assets representing ownership interest in a company, typically in the form of shares of stock.