When one participant in an investment pool withdraws part of its equity from the pool, that participant's proportionate interest is decreased and all other participants' proportionate interest is increased.

Question

Quizplus · Accepted Answer

This statement is true. When one participant withdraws their equity from the pool, their percentage ownership in the pool decreases, and therefore the percentage ownership of all other participants increases. This is because the total equity in the pool remains the same, but the number of participants has decreased.

When One Participant in an Investment Pool Withdraws Part of Its