Which one of the following nonbank financial-service institutions sell shares to the public representing an interest in a professionally managed pool of stocks,bonds,and other securities?
A)Security brokers and dealers
B)Investment banks
C)Finance companies
D)Mutual funds
E)Hedge funds

Question

Quizplus · Accepted Answer

Mutual funds pool money from individual investors in order to invest in a diversified portfolio of stocks, bonds, and other securities. These funds are professionally managed and provide investors with shares that represent their stake in the fund's holdings. Mutual funds sell these shares to the public, making them a type of nonbank financial-service institution.

Which One of the Following Nonbank Financial-Service Institutions Sell Shares