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

Question

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Investment companies that use savers' money to invest in various types of financial assets, including stocks and bonds, are known as mutual funds. These funds pool money from many individual investors, creating economies of scale that allow investors to access a wider range of investment options than they could on their own. Mutual funds are regulated by the Securities and Exchange Commission (SEC) and must adhere to specific investment objectives, diversification requirements, and other rules designed to protect investors.

Investment Companies That Use the Money Provided by Savers to Invest