What type of financial institution raises money from investors by selling shares?

Question

Quizplus · Accepted Answer

A mutual fund is a type of financial institution that raises money from investors by selling shares. The money collected is then invested in a portfolio of securities such as stocks and bonds, with the goal of achieving capital appreciation and income for the shareholders. Credit unions, property and liability insurance companies, and pension funds may raise money from investors or members, but they do not sell shares in the same way as mutual funds.

What Type of Financial Institution Raises Money from Investors by Selling