A financial intermediary that sets up a diversified portfolio of stocks and then resells that portfolio to individual investors is known as a:

Question

Quizplus · Accepted Answer

A mutual fund sets up a diversified portfolio of stocks and other securities and then sells shares of that portfolio to individual investors, allowing them to invest in a variety of companies without having to directly purchase individual stocks themselves. Life insurance companies provide insurance policies and other financial services, brokerage companies facilitate the buying and selling of securities, and credit card companies offer credit and payment processing services. None of these options match the description given in the question as closely as a mutual fund.

A Financial Intermediary That Sets Up a Diversified Portfolio of Stocks