Investments quiz
What is a mutual fund?
Fund uses money to purchase investments
Where can you buy and/or sell shares of mutual funds?
Through a broker/purchased from investment company
What are the advantages of mutual funds?
Small investors get professional management
Diversification
Convenience
Affordable
Range of investment options
What are the different kinds of mutual funds?
Common stock funds
Income funds
Bond fund
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
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, historical returns
How are mutual funds priced?
Be priced based on firms’ pricing policy (NAV- net asset value)
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 funof a market index