Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A)Primary securities are securities issued by corporations and backed by the real assets of those corporations.
• B)Secondary securities are securities issued by corporations and backed by the real assets of those corporations.
• C)Dominant securities are securities issued by corporations and backed by the real assets of those corporations.
• D)Preliminary securities are securities issued by corporations and backed by the real assets of those corporations.

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Definitions:

Mutual Fund

A pooled investment fund that gathers resources from several investors to place into various investment options such as stocks, bonds, and money market instruments.

Front-end Load

A fee paid by an investor at the time of entering a fund, such as a mutual fund, which is typically used to cover the fund's sales and marketing costs.

Expense Ratio

A measure of the total cost of managing and operating a fund, including administrative and management fees, expressed as a percentage of the fund's total assets.

Mutual Fund

This is a fund that amasses capital from numerous investors to make investments in different securities like stocks, bonds, and money market assets.