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What Are the Two Primary Reasons That Investors Purchase Mutual

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What are the two primary reasons that investors purchase mutual funds?


Definitions:

Brokerage Firm

A company that acts as an intermediary between buyers and sellers in investment transactions.

Buy or Sell

The decision-making process in trading or investing where "buy" refers to acquiring assets and "sell" signifies disposing of them.

Deposit Insurance

A government guarantee to depositors in banks and other financial institutions, ensuring the safety of their deposits up to a certain limit, in case the institution fails.

FDIC

Federal Deposit Insurance Corporation; a U.S. government agency that insures deposits at banks and thrift institutions, providing financial stability and protecting depositors.

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