Mutual Funds Review

What type of mutual fund would be most appropriate for an investor who is interested in investing in health care stocks?

• Balanced Fund

• Industry Fund

• Global Stock Fund

• Regional Stock Fund

What type of mutual fund would be most appropriate for a person who wants to invest in stocks from around the world?

• Balanced Fund

• Global Bond Fund

• Global Stock Fund

• Regional Stock Fund

How do mutual funds make money for their investors?

• Capital Appreciation and Dividends

• Dividends only

Most mutual fund companies offer several different types of funds.

• True
• False

A no-load fund charges a sales commission.

• True
• False

With mutual funds, you must make a large initial investment of $10,000 or more, together with monthly payments of $500 or more.

• True

• False

Exchange traded funds (ETFs) are traded just one time each day, at the market close.

• True

• False

Investors can use the internet or financial periodicals to identify outstanding mutual funds.

• True

• False

What fund charges a commission when you sell your shares?

• front-end load
• back-end load
• no-load
• 12b-1 fee

When investors own a public company’s _______, they are entitled to vote in the election of company officers as well as other important matters.

• common stock
• preferred stock