Which of the following happens when a person buys shares in a mutual fund?
A)Indirectly, the person becomes owner or creditor to many companies.
B)The person lends to, and borrows from the other shareholders in the mutual fund.
C)The person receives a fixed interest as long as he or she does not sell the shares.
D)The person lends money to the federal government.

Question

Quizplus · Accepted Answer

When a person buys shares in a mutual fund, they are indirectly becoming an owner of a portion of the various companies or assets that the mutual fund invests in. The mutual fund then manages the investment on behalf of the shareholders. The shareholder receives returns based on the performance of the investment.

Which of the Following Happens When a Person Buys Shares