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Question

Shares and mutual funds are non-certain modes of investment.


A
True
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B
False
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Solution

The correct option is A True
Mutual funds represent another way to invest in stocks, bond, or cash alternatives.
When companies look for money for their business, they can get it in two ways – either they borrow from a bank and pay interest (debt) or they ask people like you and me to invest and give us shares (equity)
If a company runs well, then the share holder gets a profit else the share holder also faces a certain amount of loss.

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