Which of the following of these financial market terms is least like the others?Group of answer choicesbondsmutual fundsIPOS&P 500stocks
Question
Which of the following of these financial market terms is least like the others?
Group of answer choices
- bonds
- mutual funds
- IPOs
- S&P 500
- stocks
Solution
The term that is least like the others is "S&P 500". Here's why:
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Bonds: These are debt securities, similar to IOUs. When you purchase a bond, you are lending money to the issuer in exchange for periodic interest payments and the return of the bond's face value when it matures.
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Mutual Funds: These are investment vehicles that pool together funds from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.
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IPOs (Initial Public Offerings): This is the process by which a private company can go public by sale of its stocks to general public. It could be a new, young company or an old company which
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