A mutual fund company uses the funds of its investors to

Question

Quizplus · Accepted Answer

A mutual fund company pools the money of its investors and uses it to buy a diversified portfolio of stocks, bonds, and other securities. The goal of the mutual fund is to generate returns for its investors through the appreciation of the securities it holds, as well as through any dividends or interest payments. The mutual fund does not produce goods or services, build infrastructure, or buy capital and resources for other firms.

A Mutual Fund Company Uses the Funds of Its Investors