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A Mutual Fund Company Buys Securities from Corporations and Governments

Question 380

Multiple Choice

A mutual fund company buys securities from corporations and governments and packages them together into a mutual fund. It then


A) sells shares of this packaged investment to interested investors.
B) deposits the mutual fund into a pension fund for institutional investors.
C) charges investors a fee to find out how these investments fared, so that investors can decide for themselves as to whether they want to own the investments.
D) gives investors the option to bid on a share of this investment.

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