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Glossary of Common Terms


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Mutual Fund
An investment company (mutual fund or other) invests and manages money in a group of assets. The investor’s benefits to buying shares of mutual funds are: diversification, professional money management, and capital gains and dividend reinvestment.

Mutual Fund Company
A company compiles a portfolio by investing money in stocks, bonds, and/or other securities, and each investor owns shares (each a percentage ownership) of the portfolio.

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