Financial intermediaries that manage a stock portfolio and sell shares of the portfolio to individual investors are:

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Mutual funds are financial intermediaries that manage a stock portfolio and sell shares of the portfolio to individual investors. They pool money from many investors to purchase a diversified portfolio of stocks, bonds or other assets. The fund's portfolio manager then makes investment decisions for the fund, buying and selling securities according to the fund's investment objective. Mutual funds offer individual investors the opportunity to diversify their investments and benefit from professional portfolio management. Pension funds and life insurance companies may also invest in stocks, but they typically do so to support their respective businesses and not to manage a diversified portfolio for individual investors. Banks also may invest in stocks, but they do not typically manage and sell portfolios of stocks to individual investors.

Financial Intermediaries That Manage a Stock Portfolio and Sell Shares