# How is known the process in which an investment company continually offers new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: How is known the process in which an investment company continually offers new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies ? Correct Answer: B. Mutual fund. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# How is known the process in which an investment company continually offers new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies ?

Direct Answer & Quick Reference

The correct option is **B. Mutual fund**.

A. combine fund

B. Mutual fund **(Correct Answer)**

C. Liquid fund

D. Stock holding company

✨ Explain with AI

Verified Key: B. Mutual fund
Solved by 1,344+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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