What is the difference between directly holding stock in a company like Apple and investing in a mutual fund that holds Apple stock?
What will be an ideal response?
• Some investors purchase Apple shares directly and hold them in a brokerage account.
• Most investors buy pre-mixed pools of assets, called mutual funds.A mutual fund is a pool of money that is collected from many investors. Mutual funds typically invest in hundreds of stocks, bonds, and/or short-term money market instruments.
A-head: INVESTMENT ACCOUNTS
Concept: Brokerage accounts
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The minimum price for a good set by the government above the equilibrium price is called a:
a. price ceiling. b. price floor. c. parity price ratio. d. market-generated price. e. deficiency price.
The theory of comparative advantage suggests that nations should produce a good if they:
a. have the lowest opportunity cost. b. have the lowest wages. c. have the most resources. d. can produce more of the good than any other nation.