Q63
Mutual funds may be affiliated with an underwriter. This means____________.
A.
the underwriter has an exclusive right to distribute shares
AnswerB.
the underwriter selects the securities in the portfolio
C.
there is no risk to the issuer of the mutual fund
D.
there is no risk to the investor of the mutual fund.
Answer: Option A
Solution
Answer: Option A
Solution:
Mutual funds may be affiliated with an underwriter. This means the underwriter has an exclusive right to distribute shares. A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature.