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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.
A mutual fund is a(n) _______.
Package of several types of securities. Although some mutual funds invest only in stocks or bonds, mutual funds as a whole are open to several types of securities.
3.
Which party hands out dividends to mutual fund investors?
The transfer agent. If you chose "distributor," remember that this party distributes shares, not dividends.
4.
Diversification spreads risk among several different investments.
True. Each investment has its own risk profile.
5.
It is possible to buy shares of a mutual fund directly from the fund instead of through a broker.
True. Although you can buy shares through a broker, most funds also let you buy shares directly from the funds themselves.
