SIE practice questioneasyTypes of Investment Company Accounts
An investor who wants professional management and diversification should consider opening which account?
- AIndividual stock account
- BMargin account
- CMutual fund account✓ Correct answer
- DUnit investment trust account
Explanation
Why C — Mutual fund account
Mutual funds offer professional management and diversification. Margin accounts relate to borrowing, individual stock accounts lack diversification, and UITs are unmanaged fixed portfolios.
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