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.
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.
3.
Which of the following does diversification do for a mutual fund?
Spread risk. By spreading risk among several items in a fund, you can reduce the damage that a downturn in a few of them can cause.
4.
Which of the following pieces of information on portfolio managers is included in a mutual fund prospectus?
Employment history. This provides a sense of the managers' experience.
5.
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.
