Investment companies that use the money provided by savers to buy various types of financial assets, including stocks and bonds are called _____.

Question

Quizplus · Accepted Answer

Mutual Funds are investment companies that pool money from many individual investors to purchase a diversified portfolio of stocks, bonds and other financial assets. They offer a convenient way for individual investors to access a diversified portfolio of assets, without having to spend significant time and resources selecting and managing their own investments. Commercial banks, investment banks, credit unions and thrift institutions operate differently than mutual funds, as they primarily provide other financial services such as banking, lending and other financial products.

Investment Companies That Use the Money Provided by Savers to Buy