A Mutual Fund Company Buys Securities from Corporations and Governments

question 278

Multiple Choice

A mutual fund company buys securities from corporations and governments and packages them together into a mutual fund. It then

• A) sells shares of this packaged investment to interested investors.
• B) deposits the mutual fund into a pension fund for institutional investors.
• C) charges investors a fee to find out how these investments fared, so that investors can decide for themselves as to whether they want to own the investments.
• D) gives investors the option to bid on a share of this investment.

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Definitions:

Token Passing

A network communication protocol where a token, or a small data message, is passed between nodes to control which node has the right to transmit.

Master PLC

The primary programmable logic controller in a network or system, responsible for coordinating communication and data exchange between connected PLCs or devices.

PID Controller

A proportional–integral–derivative controller used in industrial control systems to continuously calculate an error value and apply correction.