Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
In the world of mutual funds, what are outstanding shares?
Shares owned by the public. To be "outstanding" is to be in the public's possession.
2.
When a mutual funds individual holdings make money, so do the mutual funds shareholders.
True. Earnings are passed from the holdings to the funds shareholders.
3.
Mutual funds will require a minimum purchase amount; however, that minimum can be waived.
True. Some mutual funds will waive the minimum required investment amount for a number of different reasons, such as setting up an automatic investment plan with them. Refer to the fund's prospectus for additional details on such waivers.
4.
Diversification spreads risk among several different investments.
True. Each investment has its own risk profile.
5.
The mutual fund advisor may play additional roles besides that of advisor.
