It Is Almost Impossible to Lose Money in a Mutual

question 11

True/False

It is almost impossible to lose money in a mutual fund as the result of fraud or the mutual fund company's bankruptcy.

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Definitions:

Earnings Per Share

The portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability on a per-share basis.

Reverse Split

A corporate action where a company reduces the total number of its outstanding shares to increase the share price without changing the company's overall market capitalization.

Shares Outstanding

The total number of shares of a corporation that have been issued and are held by shareholders, including those held by institutional investors and company officers.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash.