Mutual Fund |
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Investing instrument that pools the money of many investors − its shareholders − to invest in a variety of different securities. The fund may invest in stocks, bonds, money market securities, or some combination of these. In most cases, those securities are professionally managed on behalf of the shareholders, with each investor holding a pro rata share of the portfolio. Investors are entitled to any profits when the securities are sold, and subject to any losses in value as well. Like stocks, each mutual fund has its own ticker symbol. Mutual funds are also bought and sold in units called shares. |
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