Which of the following statements is most correct?
A)mutual fund shares are traded either on an organized exchange or in the over-the-counter market.
B)mutual funds continually sell shares to investors,and shareholders may sell their shares back to the mutual fund at any time.
C)mutual funds can only invest in equity.
D)all of the above statements are correct.

Question

Quizplus · Accepted Answer

A is incorrect because mutual fund shares are primarily traded through a mutual fund company and not on an organized exchange or in the over-the-counter market. However, some mutual funds may also be traded on stock exchanges. 
C is incorrect because mutual funds can invest in a variety of asset classes such as bonds, real estate, and commodities, in addition to equities. 
B is the most correct statement as mutual funds do indeed continually sell shares to investors, and shareholders have the opportunity to sell their shares back to the mutual fund company at any time.

Which of the Following Statements Is Most Correct