An investment that pools together investors' money in order to buy securities in many different companies or governments is a mutual fund
On stock exchanges like the NASDAQ and New York Stock Exchange, investors can buy publicly traded securities. Investors may also buy shares directly from the issuer if a stock isn't listed on one of the major stock exchanges. This practice is known as over-the-counter trading. The U.S. Securities and Exchange Commission is responsible for overseeing the securities industry in the country and defending investors against stock market fraud. Investors can purchase and sell stocks on the secondary market after a company's initial public offering (IPO). Due to the secondary market, only existing shareholders can sell securities to new investors. Current shareholders sell their shares to other investors, ideally for a capital gain, which means they sell their securities for more money than they originally paid for them.
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