How is known the process in which an investment company continually offers new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies ?
Correct answer: B. Mutual fund
- A. combine fund
- B. Mutual fund
- C. Liquid fund
- D. Stock holding company
Explanation
A mutual fund pools investors’ money, issues or redeems units, and invests the capital in a diversified portfolio of securities. This diversification distinguishes it from a single-company stock-holding arrangement.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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