Sloan Richards is buying shares in a mutual fund that invests in companies that have a market capitalization of less than $2 billion. What type of mutual fund is this?

Question

Quizplus · Accepted Answer

The mutual fund that invests in companies with a market capitalization of less than $2 billion is considered a small-cap fund. This is because it focuses on investing in smaller companies with a smaller market capitalization compared to larger companies, which are considered mid-cap and large-cap companies.

Sloan Richards Is Buying Shares in a Mutual Fund That