Shares Purchased in the Secondary Market Are Purchased

question 15

Multiple Choice

Shares purchased in the secondary market are purchased

• A) from other investors.
• B) from small, little- known brokerages.
• C) indirectly through financial institutions.
• D) directly from the issuing corporation.

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Definitions:

12b-1 Fee

A fee charged by mutual funds to cover distribution and marketing expenses, included in the fund's expense ratio and paid by its shareholders.

NAV

Net Asset Value, the total value of all the securities in an investment portfolio minus any liabilities, divided by the number of shares outstanding.

Asset Growth

The increase in the value of a company's assets over time, which can be due to investment returns or contributions.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the leverage level and financial health.