Questions And Answers 2025 Updated.
Pooled diversification - Answer strength of mutual fund being able to invest in a variety of
assets. usually, this variety cannot be attained by an individual investor.
load funds - Answer type of mutual fund that contains either a front-end commission charge
or a back-end redemption charge
no-load funds - Answer mutual fund that does not include loans
12(B)-1 fees - Answer fees to recover marketing costs
management fee - Answer fee paid to management and investment team for their services
open ended fund - Answer fund that'll continue to sell shares indefinitely, always buy the
shares back, must keep cash on hand to meet redemptions
closed end fund - Answer fund who no longer sells open membership, shares sold on
secondary market
share price - Answer assets/# of shares
socially responsible fund - Answer fund that focuses primarily on companies that meet a
certain moral filter
reit - Answer real-estate investment trust, way to invest in real estate without the hazards of
personal property ownership
mutual fund - Answer investors purchase shares in a fund. fund invests the assets into various
securities. securities returned to investors. share the price of fund increased or decreases based
on performance.