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Why Would Someone Want to Give Serious Attention to Investing

question 81

Essay

Why would someone want to give serious attention to investing in mutual funds? At the same time,why would you not invest in them?


Definitions:

Subsidiary Contract

An agreement or contract involving a company that is controlled by another parent company.

Initial Value Method

An accounting practice for investment recording wherein the investment is kept at its original cost on the balance sheet without adjusting for changes in net income of the investee.

Dividends

Earnings disbursed by a company to its shareholders, generally as a sharing of profits.

Net Income

The total profit or loss of a company after all revenues, costs, and expenses have been accounted for, typically reported at the bottom of the income statement.

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