Question

Before 1970, mutual funds invested almost solely in Question 1 options: A) municipal bonds and money market securities. B) corporate bonds. C) United States government bonds. D) corporate common stocks.

Answer 1

Before 1970 , mutual funds invested almost solely in corporate bonds.

Explanation:

A corporate bond is defined as that bond that a corporation normally issue so that they can raise finance for various reasons related to ongoing operation or so that the business can be expanded.

During 1952 ,6.5 million Americans had common stock. Due to the Great Depression that happened in 1930s and the market crash that happened in 1950 scared people a lot ,thus they kept themselves aside from stock. During 1950 it was a time consuming as well as expensive investment process. During 1950 people had limited investment choice and the concepts related to overseas were not in the scenario.