Which of the following pools money from large numbers of individual investors and invests these funds in a variety of stocks, bonds, government securities, and other assets, with each individual investor sharing in the earnings in proportion to the amount contributed?

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Mutual funds pool money from individual investors and invest in a diversified portfolio of assets. Each investor shares in the earnings in proportion to the amount invested. This is a popular investment option for those seeking diversification and professional management of their investments. Debentures and preferred stocks are types of securities, but not mutual funds. Stock indexes are not an investment vehicle, but rather a measure of the performance of a group of stocks.

Which of the Following Pools Money from Large Numbers of Individual