In a mutual fund, such as ABC Fund, shareholders possess an "undivided interest" in the securities in ABC's portfolio. Make sure you know what this means before you take the Series 6 exam.
An undivided interest means that if there are 100 stocks in ABC's portfolio, a shareholder owns a portion of the entire portfolio. A shareholder's interest cannot be divided or allocated merely to one or two securities. No, a shareholder has an interest in the entire portfolio.
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