Which one of the following would best describe a mutual fund?
A)an investment that is available at many banks and is FDIC insured
B)a company that manages a portfolio that is purchased by pooling the money of its investors
C)a debt contract that is issued by a company and offers interest payment on the loan
D)ownership of shares in a corporation with no guarantee the company will be profitable

Question

Quizplus · Accepted Answer

A mutual fund is a company that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities, managed by professional fund managers.

Which One of the Following Would Best Describe a Mutual