What Happens When a Person Buys Shares in a Mutual

question 184

Multiple Choice

What happens when a person buys shares in a mutual fund?

• A) The person indirectly becomes owner or creditor to many companies.
• B) The person lends to and borrows from the other shareholders in the mutual fund.
• C) The person receives a fixed interest as long as he or she does not sell the shares.
• D) The person lends money to the federal government.

---

Definitions:

Federal Trade Commission Act

A United States federal law established in 1914 to prevent unfair or deceptive business practices, including antitrust violations.

Lanham Act

A United States federal statute that governs trademarks, service marks, and unfair competition, providing guidelines for the registration and legal protection of brands.

Regulatory Forces

External rules and regulations imposed by governing bodies that affect how businesses operate and interact with customers.

F. Hoffman-LaRoche Ltd.

A global pharmaceutical and diagnostics company that focuses on advancing science to improve people's lives.