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SIE: Account Types
SIE practice questioneasyTypes of Investment Company Accounts

An investor who wants professional management and diversification should consider opening which account?

  1. AIndividual stock account
  2. BMargin account
  3. CMutual fund account✓ Correct answer
  4. DUnit investment trust account
Explanation

Why CMutual 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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