224k views
3 votes
A(n) ____ is the pooling money from many investors to buy a large selection of securities

1 Answer

6 votes

Final answer:

A mutual fund is a type of investment vehicle that pools money from many investors to buy a diversified portfolio of securities. Investors buy shares of the mutual fund and receive returns based on the fund's performance.

Step-by-step explanation:

A mutual fund is the pooling of money from many investors to buy a large selection of securities.

It is a type of investment vehicle that allows individuals to invest in a diversified portfolio of stocks, bonds, and other assets. When an investor buys shares of a mutual fund, they are essentially buying a portion of the fund's portfolio.

The return on investment for the investor is based on how the fund as a whole performs.

User Matt Kim
by
7.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.