How are mutual funds and a diversified portfolio similar?
What will be an ideal response?
They both are a pooled collection of investments. This causes your money to be spread across a variety of investments so that if one is performing poorly, you have a good chance that another investment might be performing better.
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All assets that will not be converted to cash or used up within the business's operating cycle or one year, whichever is greater, are called ________
A) long-term assets B) fully depreciated assets C) current assets D) current liabilities
The partnership of Rodgers & Higgs, CPAs, performed audits of Alt Corp., a publicly-traded company, for the past several years. After issuing the current year's audit report, the CFO of Alt confessed to having committed fraud against Alt. Under which of the following statutes would the investors most likely bring suit against Rodgers & Higgs?
A. Securities Act of 1933, if they can prove ordinary negligence. B. Securities Act of 1933, if they can prove gross negligence. C. Securities Exchange Act of 1934, if they can prove ordinary negligence. D. Securities Exchange Act of 1934, if they can prove scienter.