___________ are financial intermediaries that hold portfolio of securities on the behalf of their shareholders.
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A. B. C. D.C
The correct answer is C. Investment companies.
Investment companies, also known as mutual funds or asset management firms, are financial intermediaries that pool money from multiple investors and invest in a diversified portfolio of securities such as stocks, bonds, and other financial instruments. The investments are made by professional portfolio managers on behalf of the shareholders, who own a portion of the assets in proportion to their investment.
Investment companies are regulated by the Securities and Exchange Commission (SEC) and are required to disclose information about their investment objectives, fees, risks, and performance. They offer various types of funds such as equity funds, bond funds, balanced funds, and money market funds, which cater to different investment goals and risk preferences.
Investment companies provide several benefits to investors such as diversification, professional management, liquidity, convenience, and transparency. They allow investors to access a broad range of securities that would be difficult or expensive to purchase individually. They also provide ongoing monitoring and adjustment of the portfolio to align with the investment objectives and market conditions. Additionally, investment companies offer daily liquidity and easy access to funds, which makes it easy for investors to buy or sell their shares.
In summary, investment companies are financial intermediaries that hold a portfolio of securities on behalf of their shareholders. They offer various types of funds that cater to different investment goals and risk preferences and provide several benefits to investors such as diversification, professional management, liquidity, convenience, and transparency.