Which cash equivalent raises funds by selling shares to large numbers of investors and then pools these funds to purchase short-term, liquid securities?

Question

Quizplus · Accepted Answer

Money market mutual funds raise funds by selling shares to large numbers of investors and then pool these funds to purchase short-term, liquid securities. M2 index funds track a broader range of money supply measures and do not necessarily invest in short-term, liquid securities. T-bills are short-term, liquid securities but are not an option for raising funds. Exchange funds allow investors to exchange low-cost basis stocks for a diversified portfolio but do not necessarily invest in short-term, liquid securities.

Which Cash Equivalent Raises Funds by Selling Shares to Large