To Purchase Shares in an Open-End Mutual Fund from an Investment

question 27

True/False

To purchase shares in an open-end mutual fund from an investment company,you may use four options: regular account transactions,voluntary savings plans,contractual savings plans,and reinvestment plans.

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Definitions:

Compounded Semi-annually

Interest on a loan or investment calculated twice a year, added to the principal sum, and earning interest thereafter.

Mortgage Loan

A loan secured by real property through the use of a mortgage note, typically used to purchase property.

Compounded Annually

Compounded annually refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods once a year.

Rate of Return

The increase or decrease in the value of an investment during a set timeframe, represented as a proportion of the investment's starting price.