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What Are Growth Mutual Funds?

Growth mutual funds pay few or no dividends because the companies they invest in usually reinvest their profits for more growth.
	True
	False
True. Reinvesting profits adds to a company's capitalization.
True. Reinvesting profits adds to a company's capitalization.

The stocks that growth mutual funds invest in may not pay dividends.
	True
	False
True. A corporation may reinvest its surplus earnings back into its stocks to expand the company rather than pay dividends.
True. A corporation may reinvest its surplus earnings back into its stocks to expand the company rather than pay dividends.

What is the objective of growth mutual funds?
	To pay current income
	To grow over time
	To grow by acquiring other funds
	To buy the highest-priced stocks
To grow over time. The objective of growth funds is to grow in value over time. Providing income is not a priority.
To grow over time. The objective of growth funds is to grow in value over time. Providing income is not a priority.

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