Value funds would be more likely to buy stock based on a sound earnings record, while growth funds might invest in companies with limited or no earnings records.

Question

Quizplus · Accepted Answer

Value funds focus on companies that are undervalued but have strong fundamentals, such as a solid earnings record, whereas growth funds often invest in companies with high growth potential, which may include those with limited or no earnings records, expecting future profits.

Value Funds Would Be More Likely to Buy Stock Based