Question

An open-end investment company that can issue an unlimited number of its shares to investors and use the pooled proceeds to purchase corporate and government securities is called: A. a mutual fund B. a pension fund C. an insurance company D. a brokerage firm

Answer 1

Answer:

A. a mutual fund

Explanation:

A mutual fund -

It is a type of financial vehicle , where the money collected by the investors , is pooled and then further invested in securities , like the bonds or stock market is referred to as mutual fund .

Any investor can invest their money in the mutual funds , it is a indirect form of investing in the stock market .

The returns obtained by mutual funds are dependent on the stock market .

Hence , from the given information of the question ,

The correct option is A. a mutual fund .