A Common Stock Fund That Invests in Only One Industry

question 117

Multiple Choice

A common stock fund that invests in only one industry such as construction companies is called a(n) ____ fund.

• A)index
• B)sector
• C)maximum capital gains
• D)growth and income

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Definitions:

Law of Equity

A body of law that provides remedies and justice not available or insufficient in common law, focusing on fairness and morally sound judgments.

Common Law Courts

The three historical English courts (the Court of Common Pleas, the Court of King’s Bench, and the Exchequer Court), where in theory law was discovered in the customs and traditions of the people.

Stare Decisis

A legal doctrine that obligates courts to follow the precedents established in previous rulings, ensuring consistency and predictability in the law.

Courts of Chancery

Courts that administer equity and handle matters such as trusts, estates, and guardianships, distinct from courts that deal with law.