All Courses > Funds > 100
Funds 101: Mutual Fund Basics

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
When a mutual funds individual holdings make money, so do the mutual funds shareholders.
Choose wisely. There is only one correct answer.
True. Earnings are passed from the holdings to the funds shareholders.
2.
In the world of mutual funds, what are outstanding shares?
Choose wisely. There is only one correct answer.
Shares owned by the public. To be "outstanding" is to be in the public's possession.
3.
It is possible to buy shares of a mutual fund directly from the fund instead of through a broker.
Choose wisely. There is only one correct answer.
True. Although you can buy shares through a broker, most funds also let you buy shares directly from the funds themselves.
4.
Which of the following pieces of information on portfolio managers is included in a mutual fund prospectus?
Choose wisely. There is only one correct answer.
Employment history. This provides a sense of the managers' experience.
5.
Diversification spreads risk among several different investments.
Choose wisely. There is only one correct answer.
True. Each investment has its own risk profile.