What Is a Mutual Fund

question 25

Multiple Choice

What is a mutual fund?

• A) A mutual fund is a pool of funds established by corporate financial managers to provide for short-term business loans.
• B) A mutual fund is a loan to the federal government made by a business firm.
• C) Investors pool resources from individuals and business firms to purchase a portfolio of stocks,bonds,and short-term securities.
• D) A mutual fund consists of money raised by selling a share of ownership in a business firm.
• E) A mutual fund is a product sold by mutual life companies.

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Definitions:

Liabilities

Financial obligations or debts that a company or individual owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Target Corporations

Companies identified as potential candidates for acquisition, takeover, or strategic partnerships.

Federal Securities Law

Laws and regulations that govern the sale, purchase, and offering of securities to protect investors and ensure market integrity.

Aggressors

Individuals or entities that initiate hostilities or actions perceived as hostile against others.