The Most Popular and Least Complicated Method of Purchasing Shares

question 114

Multiple Choice

The most popular and least complicated method of purchasing shares in an open-end mutual fund is through a

• A)regular account.
• B)voluntary savings plan.
• C)contractual savings plan.
• D)minimum withdrawal plan.
• E)free contract plan.

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Definitions:

Accounts Receivable Collection

The process of recovering funds that are due from customers who have purchased goods or services on credit.

Customer Discount

A reduction in the price of goods or services offered to buyers, often used as a sales promotion strategy.

Marketable Securities

Assets that can be rapidly turned into cash at an acceptable value.

Restrictive Short-Term Financial

Financial policies or practices that limit short-term borrowing or spending in order to achieve long-term financial stability.