TeachMeFinance.com - explain mutual fund
Mutual fund -- An investment company that continually offers new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies. Money is collected from individuals and invested on their behalf in varied portfolios of stocks .
mutual fund -- a financial corporation that sells shares of its own stock and invests the funds thus raised in the stock and securities of other corporations or in government securities. Dividends paid to shareholders are based on the earnings of the securities held by the fund, minus operating expenses. A mutual fund pools the funds of many investors and provides professional management in investing those funds. Also called an open-end investment company.
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