An investment-type financial intermediary that pools the funds of many investors to invest in several hundred or even thousands of stocks and/or bonds is called a/an

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A mutual fund pools the funds of multiple investors to invest in a diversified portfolio of stocks and bonds, providing investors with more efficient and less risky investment opportunities than individual investments. No-load funds have no sales charges while load funds charge a sales commission. Closed-end funds issue a fixed number of shares that trade on an exchange like stocks, and their prices can vary from their net asset values. However, they have a limited number of securities and do not offer daily redemptions. Therefore, a mutual fund is the best choice for investing in a diversified portfolio of stocks and bonds.

An Investment-Type Financial Intermediary That Pools the Funds of Many