An intermediary that pools and manage funds for many investors is called a/an ______.

Question

Quizplus · Accepted Answer

An investment company is an intermediary that pools money from many investors and uses that money to buy a diversified portfolio of stocks, bonds, or other securities. The company is managed by professional investment managers and charges fees for its services. This allows investors to diversify their holdings and avoid the risk of investing all of their money in a single stock or bond. Savings and loans are financial institutions that provide loans and accept deposits, while investment bankers help companies raise capital by underwriting and selling securities. ADRs are American Depository Receipts, which are certificates representing shares of foreign stock held by a U.S. bank.

An Intermediary That Pools and Manage Funds for Many Investors