Which of the following happens when a person buys shares in a mutual fund? A. Th

Question

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

Explanation / Answer

Solution-

Which of the following happens when a person buys shares in a mutual fund?

The correct option is D. The person receives a fixed interest as long as he or she does not sell the shares.

Reason

A mutual fund is a professionally managed investment plan, which is usually operated by an asset management company that brings a group of people together and invests their money in stocks, bonds and other securities.It mostly depends on time and interest rate.

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