Which one of these investments pools the funds of many investors and hires a professional money manager to manage those funds?
A)NOW account
B)securities exchange
C)certificate of deposit
D)mutual fund
E)stock option

Question

Quizplus · Accepted Answer

A mutual fund pools money from multiple investors and hires a professional money manager to invest that money in a diversified portfolio of stocks, bonds, or other securities. This allows individual investors to access a broader range of investments with lower transaction costs and greater diversification than they could achieve on their own. Therefore, a mutual fund fits the description given in the question. The other options (A, B, C, and E) do not fit this description.

Which One of These Investments Pools the Funds of Many