A ________ Is a Private Investment Pool Open Only to Wealthy

question 25

Multiple Choice

A ________ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulation and can therefore pursue more speculative policies than mutual funds.

• A) commingled pool
• B) unit trust
• C) hedge fund
• D) money market fund

---

Definitions:

Obligations

Duties or responsibilities imposed by legal or ethical requirements, contracts, or agreements.

LBO

Leveraged buyout. A process in which an investor group buys up a company’s stock using a small amount of equity and borrowing the rest of the money required. The debt is often secured by the firm’s assets. The investor groups are often the firms’ managements, and the company goes from being publicly held to being privately held.

Takeover

The acquisition of one company by another where the acquiring party secures control of the target company.

Merger

The combination of two or more companies into a single entity, often with the goal of achieving operational synergies or market growth.