Investments quiz

What is a mutual fund?

A fund that uses money to purchase investments.

Where can you buy and/or sell shares of mutual funds?

Through a broker or purchased from an investment company.

What are the advantages of mutual funds?

Small investors get professional management, diversification, convenience, affordability, and a range of investment options.

What are the different kinds of mutual funds?

Common stock funds, income funds, bond funds, balanced funds, money market funds.

What kind of fees might investors of mutual funds incur?

Load fees.

Where do you find information about Mutual Funds?

The prospectus.

What can mutual funds not do?

Purchase securities on margin, sell securities short, or be traded on secondary market.

How are mutual fund shareholders treated?

Some may be required to pay a tax.

What does the mutual fund fact sheet tell you?

Fees, risks, and historical returns.

How are mutual funds priced?

They are priced based on the firm's pricing policy, specifically the net asset value (NAV).

What does a mutual fund symbol include?

Symbols with five letters ending in X.

What is an Index?

A type of mutual or exchange-traded fund based on a market index.