Which of the Following Is Not a Way in Which

question 93

Multiple Choice

Which of the following is not a way in which mutual funds generate returns for their shareholders?

• A) They can pass on any earned income as dividend payments to shareholders.
• B) They distribute the capital gains resulting from the sale of securities within the fund.
• C) The mutual fund price appreciates.
• D) All of the above are ways in which a mutual fund generates returns to its shareholders.

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Definitions:

AASB 137

A standard issued by the Australian Accounting Standards Board that deals with the accounting for provisions, contingent liabilities, and contingent assets.

Share Buy-backs

The process by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock.

Accounting Standard

Guidelines and rules set by a recognized standard-setting body that dictate how financial transactions and other accounting events should be reported in financial statements.

Share Buy-back

A corporate financial strategy in which a company purchases its own shares from the marketplace, reducing the number of outstanding shares.