1. What term describes a fund wherein the investment is pooled into a portfolio

Question

1. What term describes a fund wherein the investment is pooled into a portfolio of securities? A Hedge Fund B. Over-the-Counter Trade C. Mutual Fund D. Growth Fund E. Income Fund 2. Hedge funds also pool savings of different investor and invest in a larger portfolio but they differ from mutual funds in what way? A. Because they employ very complex investment strategies, access is typically restricted to B. C. D. E. F. knowledgeable or "accredited" investors Sarbanes Oxley prohibits retirement funds from participating in hedge funds "Shorting the market" is the only investment protocol that is used. Hedge funds do not permit the use of limited partnerships None of the above All the above 3. In companies where the stocks are classified as either Growthncome stocks or Income stocks, investors either require dividends or have an expectation of receiving them How do dividends differ from interest payments? A. The SEC requires that dividends be paid before interest it pald B. The company typically produces a profit before interest payments are made C. Interest is a tax-deductible expense, but dividends are not D. Dividend payments are paid only to common stock shareholders E. All the above F. None of the above 4. A floating rate on debt means that: A. The rate is too high to be paid until profits reach a certain leve B. The rate can only apply to short term loans C. The rate will/could vary over time and is typically tied to the US Prime Rate or LIBOR D. Can be retroactive to earlier periods at the discretion of the lending institution 5. Early stage companies (often referred to as start-ups) usually obtain their initiall funding from A. High interest loans obtained from consumer lending agencies B. Friends & Family C. Venture Capital Firms D. State and Municipal Governments E. Local commercial banks 6. In the early stages of the funding cycle, start-ups will often seek financing from a Venture Capital Firm. Note a potential drawback from bringing on a VC firm A VC firms will typically require a board seat thereby causing a loss of control B. VC firms do not anticipate owning the firm for the long haul which might result in job losses for the current executive team when the firm is sold outright VC firms are typically not silent or absent partners often resulting in a significant amount of financial reporting that was never needed, or done, before. C. D. All the above E. None of the above

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

1)

Mutual funds are funds where public investment is pooled together and invested into a portfolio of securities for enhancing the value of the investors

So, option C is the correct option

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