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.
Mutual funds will require a minimum purchase amount; however, that minimum can be waived.
Choose wisely. There is only one correct answer.
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.
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.
Diversification spreads risk among several different investments.
Choose wisely. There is only one correct answer.
True. Each investment has its own risk profile.
4.
The mutual fund advisor may play additional roles besides that of advisor.
Choose wisely. There is only one correct answer.
True. It may also be the transfer agent.
5.
If you buy mutual fund shares from another investor instead of from the fund itself, you are buying _______ shares.
Choose wisely. There is only one correct answer.
Closed-end. Closed-end fund shares are traded between investors and cannot be bought from the fund itself, except when it sells shares for the very first time.