Question

If an investor is seeking capital gains and income from their investments, what type of investment would BEST suit these objectives?
(A) The purchase of a block of growth stock
(B) The deposit of funds into a money market account
(C) The purchase of a mutual fund heavily invested in equity securities.
(D) The purchase of STRIPs on U.S. Treasury Securities

Answer 1

Answer:

The correct answer is letter "C": The purchase of a mutual fund heavily invested in equity securities.

Explanation:

A mutual fund is a collective investment that puts together the money of a large number of investors to purchase a variety of securities like stock or bonds. When a share of a mutual fund is bought, a small stake of all investments included in that fund is gotten. Mutual funds give individual investors access to well-managed portfolios at a low price.