Explain how mutual funds are advantageous to small investors
Mutual funds offer their customers portfolios of various groups of domestic stocks, foreign stocks, and bonds. Small investors can easily put their money into these funds, thereby reducing the risks of owning individual stocks and ensuring that the overall market does not significantly outperform their portfolios. Mutual fund transactions can be carried out by telephone or over the Internet, and investors can also easily check on the past performance of the different funds and obtain other pertinent information.
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A characteristic common in both oligopoly and monopolistic competition is:
A) a small number of firms compete in the market. B) natural or legal barriers prevent the entry of new firms into the market. C) each firm faces a downward-sloping demand curve. D) the firms in the market are interdependent. E) each firm has a large share of the market.
When buyers will purchase exactly as much as sellers are willing to sell, what is the condition that has been reached?
a) supply and demand b) excess demand c) equilibrium d) price floor