Which of the Following Happens When a Person Buys Shares

question 122

Multiple Choice

Which of the following happens when a person buys shares in a mutual fund?

• A)Indirectly, the person becomes owner or creditor to many companies.
• B)The person lends to, and borrows from the other shareholders in the mutual fund.
• C)The person receives a fixed interest as long as he or she does not sell the shares.
• D)The person lends money to the federal government.

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Definitions:

Variance

A numerical indicator that shows the distribution or variability of a dataset around its average value.

SPSS Output

The results and data analyses generated by the Statistical Package for the Social Sciences software after processing information.

Correlation Coefficient

A numerical measure of some type of correlation, meaning a statistical relationship between two variables, ranging from -1 to 1.

Mean

A type of average calculated by summing values and dividing that sum by the number of values.