Which one of these investments pools the funds of many investors,hires a professional money manager to manage those funds,and offers diversification to investors?
A)NOW account
B)Securities exchange
C)Certificate of deposit
D)Mutual fund
E)Stock option

Question

Quizplus · Accepted Answer

A mutual fund pools the funds of many investors, hires a professional money manager to manage those funds, and offers diversification to investors by investing in a diversified portfolio of stocks, bonds, and other securities. NOW accounts, certificates of deposit, and stock options do not pool the funds of many investors or offer diversification. The securities exchange is a marketplace for buying and selling securities, but not a type of investment that pools funds or offers diversification.

Which One of These Investments Pools the Funds of Many