Law Dictionary

To search for a particular term please use the following search box.

mutual fund

a financial corporation that sells shares of its own stock and invests the funds thus raised in the stock and securities of other corporations or in government securities. Dividends paid to shareholders are based on the earnings of the securities held by the fund, minus operating expenses. A mutual fund pools the funds of many investors and provides professional management in investing those funds. Also called an open-end investment company.

Source : U.S. Department of the Treasury

Language : English

Return

Return to Law Dictionary Index