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Frank buys his daughter a computerized toy that is teaching her to read. As she reads the text of a book, the computer asks her questions, which she answers by pointing to the answers with a specialized stylus. If she gets the answers correct, the computer applauds. If she gets the answer wrong, the computer requests another answer. This toy is analogous to ____.
Mutual Funds
Mutual Funds are investment vehicles that pool money from multiple investors to purchase diversified portfolios of stocks, bonds, or other securities.
Expense Ratio
A measure reflecting the annual cost of investing in a mutual fund or ETF, expressed as a percentage of assets under management.
12b-1 Fee
A fee charged by some mutual funds to cover promotion, distribution, and marketing expenses.
Bank CD
A Certificate of Deposit, a savings certificate with a fixed maturity date and specified fixed interest rate, offered by banks.
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