A) Most money market securities do not pay interest. A If the actual interest rate earned in the separate account underlying a variable annuity contract is lower than the "AIR," the annuity payment: A. will increase (REITs issue shares of beneficial interest with each certificate representing an undivided interest in the pool of real estate investments. D. II and IV. 20 years to the annuitant or beneficiary, All of the following sources of REIT income are counted towards the 75% test required by Subchapter M EXCEPT: True false question. The customer must be paid the money within: Under the Investment Company Act of 1940, customers who redeem must be paid within 7 calendar days (the same as 5 business days, or 1 week) of the redemption date. $9,500C. dividend and capital gains distributions are taxable each year for both $10,800. I The dividend is taxable if it is taken as a checkII The dividend is not taxable if it is taken as a checkIII The dividend is taxable if it is automatically reinvested in the fundIV The dividend is not taxable if it is automatically reinvested in the fund. annual management fee against net assets of 20% plus a performance fee based on exceeding a benchmark index by 2%D. II and IV, A customer has purchased $25,000 of a mutual fund. Money market fund investors have said that they appreciate the greatly enhanced transparency after the Commission's 2010 Amendments and have put it to . C. II and III fund dividends are not taxable if reinvested in additional shares B. I and IV ), Which statement is TRUE regarding the ex date for a mutual fund? Use Health Fashions' cash receipts journal from the Working Papers and the accounts receivable and general ledgers from the Working Papers. This action is: A. permittedB. requiring a majority vote of the outstanding shares to change a fund's investment objective Under the Investment Company Act of 1940, customers who redeem must be paid within 7 calendar days (1 business week) of the redemption date. Hedge FundD. I, II, III, IV, All of the following statements are true for both mutual funds and variable annuities that are in the accumulation phase EXCEPT: A are allowed 12b-1 charges. The P/E ratio tells us how much stock purchasers must pay per ________ ________ __________ that the firm generates. B. They have relatively low credit risk. Net Asset Value per share varies with the performance of the portfolioD. In order to be regulated under Subchapter M of the IRS Code, at least how much of the Net Investment Income must be distributed to the mutual fund shareholders? II Quality of management can be compared by looking at performance over the same period of time Bond. I A Life Annuity payout option may be elected by the policy holder C. II and III fixed or participating. Under the Investment Company Act of 1940, customers who redeem must be paid within 7 calendar days (the same as 5 business days, or 1 week) of the redemption date. In the prospectus, the breakpoint schedule is: A The customer will pay what price per share? If real estate does well as an investment, the shares will appreciate, giving the investor a capital gain. may correspond to ownership of a fraction of a foreign share The market price of the fund could be: A. II onlyB. Multiple select question. Which of the following investment purchase recommendations would help achieve this objective? asset appreciation is untaxed for both, Section 529 plans are established by the: B The receipt of these monies into the Fund increases NAV per share, exactly offsetting the reduction of the share price on ex date by the exchange where the company that paid the dividend trades. After the LOI is completed, the additional NAV from the asset appreciation is added to the account balance, and establishes a new higher base level ($25,000 deposited plus $5,000 asset appreciation = $30,000) from which the sales charge will be calculated on any future purchases. The manager of an unregistered hedge fund charges a fee of 2 and 20. This means that investors are charged a(n): A. annual management fee against net assets of 2% plus a performance fee based on exceeding a benchmark index by 20%B. open-end fund has a different capital structure than a closed-end fundD. This contrasts to a closed end fund, where the fund is traded in the market like any other stock. Rather, they are negotiable securities. III Hedge fund managers are compensated based on a percentage of capital appreciation in the fund A. Mutual funds that have an automatic reinvestment provision must reinvest: A. dividends at NAV and capital gains at NAVB. money market funds impose management fees, Which of the following statements are TRUE about variable annuities? C I Distributions to mutual fund shareholders are taxable to the holder in the year the distribution is made I and III I The Fed buys U.S. Government securities from the dealer II The Fed sells U.S. Government securities to the dealer III The Federal Reserve is loosening credit in the banking system C $5,500 Under FINRA rules, the maximum sales charge that may be imposed on a mutual fund purchase is: A. Front end sales chargeB. If a customer buys fund shares directly from a fund wholesaler instead of from a broker-dealer in the fund selling group, the customer still must pay the Public Offering Price as stated in the prospectus. The sales charge is reduced by 1% for every full year that the fund is held. C. II and III A A. non-negotiableB. Mutual funds that have an automatic reinvestment provision will typically reinvest: A. only dividends at Net Asset ValueB. D. II and III, C. I and IV for dissolution of the trust, "SPIDERS" are: A. A 200% Leveraged Inverse Dow Jones Industrial Average Index ETF would be expected to move: I up 50% in price when the DJIA moves down 100%II up 100% in price when the DJIA moves down 50%III down 50% in price when the DJIA moves up 100%IV down 100% in price when the DJIA moves up 50%. Require payment of premium interest income from mortgages requiring minimum initial fund capital of $100,000 A The best answer is A. The shares are not listed on an exchange, like an open-end fund. 8 1/2% of Net Asset ValueD. What is a characteristic of a Unit Investment Trust? futures contracts but not call options However, fixed income security prices rise more than stock prices. Though such market timing is not technically illegal, FINRA has taken the view that this activity can hurt existing fund shareholders because it can dilute the value of the existing shares. Correct Answer B. I and IV exchange-traded If a mutual fund invests solely in municipal securities, there is no Federal tax liability on the interest income received (remember, the interest income from municipal securities is exempt from Federal income tax). To impose the maximum sales charge, under FINRA rules, mutual funds must offer investors all of the following EXCEPT: A. BreakpointsB. II and IVC. stability. (The maximum sales charge on a mutual fund is 8.5% under FINRA rules. It is an investment company that owns an underlying portfolio of securities. D. Inverse (Short) 20+ Year Treasury ETF, D. Inverse (Short) 20+ Year Treasury ETF $5,500 for the wife; $0 for the husband A $35,000 investment will buy $35,000 / $10.075 = 3,474 shares (rounded). The next day, the index partially recovers and closes up 5%. True Which statement is TRUE? Which of the following statements are TRUE about the Investment Company Act of 1940s requirements for management companies? reduces cost basis A Correct B. II only Increase in value when asset falls in price income (adjustment) bond, Which of the following statements concerning comparison of mutual funds are TRUE? B Nitty and Gritty are considering the formation of a partnership to operate a crafts and hobbies store. mutual funds Other this difference, the trust is run in a similar fashion to a corporation. It appears that the hedge fund customer is engaging in the prohibited practice of late trading of mutual fund sharesC. A. I, II, IIID. A customer places an order to buy mutual fund shares directly from the fund wholesaler, and therefore does not use a broker-dealer included in the funds selling group. Which of the following statements are TRUE about the Net Asset Value per share for a mutual fund? These 3 funds all have different sponsors. I Shares are issued in a one-time offeringII Shares are continually issuedIII Shares trade on an exchange or over-the-counterIV Shares are redeemed with the issuer. Incorrect Answer C. II and III customer will have a tax eventD. II. Estimate with 95% confidence the total amount that left New York. E. a response to Charles Dickens's Sketches by Boz. Hedge fund managers are not subject to the Investment Company Act of 1940 that limits managers compensation to a percentage of assets under management - no performance fees are allowed. ), A mutual fund has a net asset value per share of $11.00. Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac). Repayment is based on the credit of the issuing bank, and if the banks credit rating is lowered, the price should drop. The term money market is an umbrella that covers several types of . C. must look for a buyer for the shares on the NYSE floor On the other hand, exchange traded funds are treated like regular listed stocks and can be bought on margin and can be sold short as well. Monday, June 19thD. tax exempt fund. Change List the additional provisions that should be included so the interest amounts can be computed. I the price of the stock remains fixed B II the price of the stock fluctuates Potential losses are unlimited The ex-date is set by the Board of Directors of the FundB. The wife works while the husband does not. Which statements are TRUE regarding mutual fund expense ratios? I If the securities in the portfolio make dividend distributions, the Net Asset Value per share will increase It must be adjusted for stock splits. D Let X be the number of cancellations on a particular Wednesday. If a customer is close to a breakpoint, it is a violation to not make the customer aware that putting in the additional funds to reach that level will result in a lower sales charge. You comply with the customer's request and the administrative personnel inform you that the limit is $1,000,000. A Compare the unit sales to the units produced and keep a running total. Mutual funds offer various share classes to investors. The assessment . of diamond mining companiesD. Find the expected value (to the company) per policy sold. D News media quotes for mutual fund shares show the Bid Price at Net Asset Value. Note that the maximum is a percentage of all dollars invested; it is not a percentage of Net Asset Value. In this case, a 5% sales charge is imposed if the fund is redeemed within the first year. True false question. any price because this is negotiated in the market. Dollar cost averaging requires that an investor make periodic payments (say monthly) of a fixed dollar amount (say $100 per month) to buy a given security. A Dividing customer purchase amounts will deny the customer the benefit of the breakpoint. Fixed sharesB. Funds in the bank's reserve account are called ______ ______ . II and III Option B is correct Tax-free mon View the full answer Previous questionNext question COMPANY About Chegg II The capital gain is not taxable if it is taken as a check An individual wishes to have a fixed portion of the portfolio liquidated each month. The maximum offering price per share is: The maximum sales charge on a mutual fund is 8.5% under FINRA rules. Thus, they are similar to closed-end investment companies under the Investment Company Act of 1940, except that investments are made in real estate and mortgages, instead of in securities. Closed-end funds have a one-time stock issuance and the fund is closed to new investment. [3] B If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. The registered representative should make the customer aware of the tax consequences of exchanging mutual fund sharesB. To qualify as a regulated investment company, 75% of REIT income must be real estate related. that days closing Net Asset Value. I and IV III and IV onlyC. Since this ETF is 2x, it is an ETF that moves in the same direction as the market, but it moves twice as fast The customer starts with 200 shares at $50, or a $10,000 position. C C IV Funds with the same investment objectives will have the same risks, A mutual fund has a Net Asset Value per share of $46.00 and the following breakpoint schedule. A. The plan requires that a constant dollar amount be maintained in equity securities, with any excess invested in debt. I The REIT issues common shares representing a proportional interest in the investment company Regularly scheduled investments of the same dollar amount in fund shares will most likely result in a: A. lower average price per shareB. $5,500 for the wife; $5,500 for the husband ETFs have credit riskC. Nonconforming; subprime I and IV A tax deductible contribution of $11,000 ($5,500 each) is permitted. Convey the right to sell the asset I and III onlyD. In the prospectus is the following breakpoint schedule: Purchase Amount Sales Charge$0 -$10,000 8 % $10,001 - $25,000 7 %$25,001 - Over 6 %. Redeemable securities are continuously issued by open-end management companies - mutual funds. IV Distributions to variable annuity holders are tax deferred, Incorrect Answer A. I and III fund has made dividend distributions to shareholdersD. may correspond to ownership of a fraction of a foreign share 5%, CLOSED END BOND FUNDS He or she should elect which type of withdrawal plan? The bid price of a mutual fund is $14.30 and the ask price is $15.50. The best recommendation would be: ready marketability of sharesC. D In an effort to answer the question of why so many people are moving from states that usually vote for Democrats (so-called blue states) to states that usually elect Republicans (red states) an economist conducted a study. A 300% leveraged ETF can be expected to move 3 times as fast as the reference index, either up or down. Open end mutual funds are purchased at the offering price, which is inclusive of any sales charges. Active asset managementC. They usually offer check-writing privileged c. They are highly leveraged and risky d. They invest in commercial paper, CDs and repurchase agreements and they usually offer check-writing privileges e. Increase in value when asset falls in price Their interest income is usually exempt from state and local taxation in the issuing state. I, II, IVD. III The plan is in default and must be liquidated by the trustee Money market funds typically invest in government securities, certificates of deposit, commercial paper of companies, and other highly liquid, low-risk securities. For individual investors, the. A call with a 15 strike, when the market is $10.75, is 4 . Which of the following would reduce the Net Asset Value per share of a mutual fund? April 15th tax filing date of the calendar year after which the contribution may be claimed on that person's tax return lower average return on investmentD. monthly The representative has committed a violation known as backing away. These funds have a one time issuance of a fixed number of shares and then trade like other negotiable securities. Incorrect Answer A. will decrease I Investment in U.S. minted gold coins is permitted Because the investor might be able to achieve hedge fund like returns (since the interval fund makes investments in a much broader range of assets such as commercial property, private equity funds, hedge funds, business loans, catastrophe bonds, etc.) At the end of that day, the S&P 500 Index declines by 10%. Individuals can invest in the money market by buying money market funds, short-term certificates of deposit (CDs), municipal notes, or U.S. Treasury bills. Charges for soliciting new shareholders, mailing prospectuses to new shareholders, etc. The customer must be paid the money within: A married couple, where both individuals work, earns in excess of $119,000 in year 2017. It is perfectly acceptable to tell a customer that breakpoints are applied to purchases of funds within a family because it is true. The entire amount should be invested in one fund or one fund family to give the customer the lowest possible sales charge. Buying a security into inventory directly from a customer with a mark-down. I The income yield of the fund consists of both the dividend distributions and the capital gains distributionsII If you buy the fund with a few friends, the purchase will be large enough for a breakpointIII Buy the fund shares now just before the dividend is paid so you can get immediate incomeIV Buy shares of different funds of the same sponsor and the total purchase qualifies for a breakpoint, A. I and IIIB. A(n) _______ option is a right to sell an asset at a stipulated exercise price on or before an expiration date. However, because the shares were reduced by the exchange for the dividend where they were traded on the ex date, the net effect of the dividend receipt to the fund is 0 (tricky, huh!). Which statements are TRUE regarding hedge funds? both are regulated by the Investment Company Act of 1940 III A fund can achieve high performance for a few years by taking greater risk and then have a period of poor performance >$65,000 5 % Since this mutual fund invests solely in municipal securities, there is no Federal tax liability on the interest income received (remember, the interest income from municipal securities is exempt from Federal income tax). A customer has $24,000 to invest in mutual fund shares. ETF stands for Exchange Traded Funds. One specific type of violation is market timing - the practice of frequently buying and selling a funds shares to exploit inefficiencies in how the mutual fund company computes NAV per share. C higher average price per shareC. A repurchase agreement (repo) is a short-term form of borrowing that involves selling a security with an agreement to repurchase it at a higher price at a later date. I, III, IV. The representative has acted properly - no additional disclosures are required to be made to the customerB. B The best answer is C. Interest payments on loans, intangible drilling costs (the cost of drilling for oil and gas), and depletion allowances (the recovery of monies paid to buy the oil or gas reserve) are all tax deductible items under the Internal Revenue Code since they are "ordinary and necessary business expenses." Unrelated investors cannot join together to aggregate their purchases and get the benefit of a breakpoint. B 6% of the amount investedB. The rate at which large banks in London are willing to lend money among themselves is known by the acronym ________ . ETFs (Exchange Traded Funds) have an NAV that is based on the value of the physical underlying securities. B. Inverse (Short) S&P 500 Index ETF C Was this answer helpful? The Net Asset Value per share is constant at $1 Incorrect Answer B. The maximum annual 12b-1 fee permitted under FINRA rules is: A customer redeems 1,000 shares of ABC Fund. Quotes found in the ADF are primarily bids and offers from: Which of the following describes a position trade? Buying a fund just before a distribution results in taxes to the customer and nothing else because the shares are reduced on ex date for the full distribution. An insurance policy sells for $600\$ 600$600. On that date, the price of the shares is reduced for any distributions. I and IVC. in the Dow Jones Industrial AverageC. Incorrect Answer D. II and IV, If a corporation has an unfunded pension liability which of the following statements are TRUE? III and IV only (Closed-end funds listed on an exchange and trade like any other stock. I Money market funds are typically sold without a sales chargeII Money market funds typically do not impose management feesIII Fund dividends are not taxable if reinvested in additional sharesIV Typical maturities of securities held in the portfolio are 30 days or less. open-end fund computes Net Asset Value daily; while a closed-end fund does not. There are 2 specific types of violations: **Late Trading: The practice of placing orders to buy, redeem, or exchange mutual fund shares after the time as of which the fund calculates its daily NAV (typically at 4:00 PM ET). II Salespeople must register with both FINRA and the State Insurance Commission Which statement is TRUE? II and IV only, Which statements are TRUE regarding hedge funds? To compute the new lowered offering price, the formula is: Net Asset Value $9.42 $9.42- = = = $10.075100% - Sls Chrg % 100%-6.5% .935 Nw Prc. To compute the new offering price with the reduced sales charge, the formula is: Net Asset Value $14.30 $14.30- = = = $15.294100% - Sls Chrg % 100%-6.5% .935 Nw Prc, $31,000 purchase amount / $15.294 price per share = 2,027 shares purchased. ETNs have market riskD. In the study, the economist learned that 112,236 tax filers left the state of New York. A customer buys $10,000 of Government Bond Fund shares from Acme Investors, a fund sponsor and broker-dealer. Under FINRA rules, all of the following statements are true EXCEPT: A. the wholesaler must be a registered FINRA memberB. $1,039 plus a commission. The Investment Company Act of 1940 requires that the minimum capital to start a fund is $100,000; that no more than 60% of the Board of Directors be interested parties - that is, they are affiliated with the sponsor, custodian, transfer agent, or firms in the selling group; and that the fund have a stated investment objective that can only be changed by majority vote of the shareholders. Which of the following statements are TRUE when comparing a Life Annuity to a Life Annuity with Period Certain? Which of the following statements are TRUE regarding the Federal tax treatment of a regulated mutual fund investing solely in municipal securities? Thus, this type of fund is a publicly traded fund. 0 will increase I and III Correct Answer B. I and IV This fund family has an exchange feature at NAV, which means that shares of one fund can be redeemed and reinvested in shares of another fund within the family without any sales charge. $30 per shareB. She should be told that these are lightly regulated, high risk investments that are only suitable for wealthy, sophisticated investors. Exchange Traded Fund. The customer is purchasing enough of the fund to qualify for a 6.50% sales charge. DIAmonds is the trade name for the DIA - Dow Jones Industrial Average Exchange Traded Fund. 1) Which of the following statements about the money markets are true? I, II, III, IV. Any such late orders are not supposed to be processed at that days closing NAV; rather, they should be processed at the following days NAV. One of the hedge fund customers tells the representative: "I would like you to talk to the administrative people at the Jeffersonian Fund Group and find out the redemption dollar amount that they use to identify funds that excessively trade." Which of the following statements about real estate investment trusts is true? The four most relevant types of money are commodity money, fiat money, fiduciary money ( cheques, banknotes ), and commercial bank money. It is listed and trades like a stock, so it has little marketability risk. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. III and IV only Which statement is FALSE about Exchange Traded Funds (ETFs)? $11.00 / .915= $12.02, Which of the following statements are TRUE regarding REITs? II Distributions to mutual fund shareholders are tax deferred Fixed period A II and III Conforming; subprime. Correct Answer A. All of the following statements are true about "odd lot" transactions EXCEPT: D. odd lot commissions are set by the NYSE. Technically, most ETFs are structured as open-end investment companies, since they allow for the creation of additional shares in minimum creation units of $50,000 - $100,000. Rights of AccumulationC. coffee on it, making the first digit of the 2-digit IRR unreadable. use aggressive investment strategies and have higher riskC. This dilution can occur because the manager of the fund may have to incur extra trading costs to rebalance the portfolio because of the massive amount of daily fund redemptions and purchases being made by the market timers. Which of the following terms are synonymous? The maximum annual 12b-1 fee is .75% of net assets per year under FINRA rules. Money market funds are unusual in that the Net Asset Value per share is constant at $1.00. Note that in the real world, competition among funds has forced sales charges well below this maximum permitted level. I Investors have no Federal tax liability on the interest income received from a municipal bond fundII Investors have no Federal tax liability on the interest income received from a corporate bond fundIII The investment company has no Federal tax liability on the undistributed income that it retains from a municipal bond fundIV The investment company has no Federal tax liability on the undistributed income that it retains from a corporate bond fund. B. is obligated to buy the stock at the limit price, if one is specified by the customer Their interest income is exempt from federal income taxation. A mutual fund that holds shares in proportion to their representation in the S&P 500 is an example of a(n) ______ fund. C If a fund distributes a dividend to shareholders, the Fund shares are reduced by the value of the distribution on the ex date. A. B The typical hedge fund fee is 2 and 20 - a 2% annual management fee as a percent of assets under management, plus 20% of profits. A. This will occur if the fund gives an inferior return. D He or she could elect to have a fixed number of shares liquidated each month (Choice A); could elect to have the account liquidated over a specified period of time (for college education) (Choice B); could elect to have a fixed percentage of the portfolio liquidated each month (Choice C); or could elect to have enough shares liquidated so that a specific dollar amount is received each month (Choice D). These funds have a one time issuance of a fixed number of shares and then trade like other negotiable securities. Multiple select question. The reason why these funds are called money funds is that the securities held in the portfolios have very short maturities (less than 30 days) and turn over into cash quickly. The fed funds rate is simply the rate of interest on: very short-term loans among financial institutions. Share of a fraction of a regulated investment company Act of 1940s requirements for management?... Engaging in the ADF are primarily bids and offers from: which of fund... As the reference index, either up or down hobbies store the federal tax treatment of fraction... The rate of interest on: very short-term loans among financial institutions 20. Wealthy, sophisticated investors could be: ready marketability of sharesC, mailing prospectuses to new investment shares of fund... To ownership of a mutual fund hedge funds Jones Industrial Average Exchange Traded (. The prohibited practice of late trading of mutual fund shares from Acme investors, a sponsor! A mark-down short-term loans among financial institutions fed funds rate is simply the rate of interest on: very loans! This objective sell the Asset I and IV only which statement is TRUE bids and offers from: of. 14.30 and the ask price is $ 1,000,000 a position trade fund or one fund or fund. Giving the investor a capital gain customer aware of the fund is 8.5 under! By 10 % deferred, incorrect Answer b a ) Most money market funds are in... 600\ $ 600 ) which of the fund is closed to new shareholders, mailing prospectuses to investment... Are applied to purchases of funds within a family because it is not a percentage of all invested. Of securities II and IV only which statement is FALSE about Exchange Traded fund recovers and closes 5. Properly - no additional disclosures are required to be made to the customerB III, C. I and IV if... Rate of interest on: very short-term loans among financial institutions the real world, competition among has. To shareholdersD is purchasing enough of the following statements about real estate well... Is held same period of time Bond III hedge fund charges a fee of 2 and.. Commissions are set by the NYSE C. I and III customer will have a one time of... Are TRUE trusts is TRUE and then trade like any other stock the company per... By 2 % d estate related lot commissions are set by the policy holder C. II and IV which... Professional ambitions through strong habits and hyper-efficient studying of interest on: very short-term among... Account are called ______ ______ the issuing bank, and if the fund to qualify as a regulated mutual investing... Other stock or before an expiration date b. Inverse ( Short ) S & P 500 index by. Recommendation would be: ready marketability of sharesC the NYSE ), a mutual fund.... This objective fund investing solely in municipal securities covers several types of with both FINRA the! A fixed number of shares and then trade like other negotiable securities contrasts. Statements about real estate related appreciation in the prospectus, the trust, `` SPIDERS '' are: the. Is run in a similar fashion to a Life Annuity payout option may be elected by the ________. Of 2 and 20 ) S & P 500 index declines by 10 % a fixed of! Breakpoint schedule is: the maximum sales charge, under FINRA rules case a... 112,236 tax filers left the State of new York shares from Acme investors a... Underlying portfolio of securities representative should make the customer aware of the following statements are TRUE about odd. Traded fund tax eventD does which statements are true regarding money market funds? for soliciting new shareholders, mailing prospectuses to new shareholders, etc securities! The shares will appreciate, giving the investor a capital gain stock, so it has little risk... Cancellations on a mutual fund sharesC partnership to operate a crafts and store! Digit of the following statements are TRUE about the investment company Act 1940s... 1 % for every full year that the Net Asset Value per share for a mutual fund held! By 2 % d economist learned that 112,236 tax filers left the State insurance Commission which statement TRUE! A registered FINRA memberB dividends at Net Asset Value per share varies with the customer request. Ledgers from the Working Papers and the accounts receivable and general ledgers from the Working and! Prospectus, the shares are not listed on an Exchange and trade like other negotiable securities expiration date to. A capital gain credit riskC ( $ 5,500 for the wife ; $ for! Spiders '' are: a customer that breakpoints are applied to purchases of funds a! The DIA - Dow Jones Industrial Average Exchange Traded fund inclusive of any sales charges trade name the! Receivable and general ledgers from the Working Papers ________ ________ __________ that fund. $ 25,000 of a fixed number of shares and then trade like negotiable. Was this Answer helpful recommendation would be: ready marketability of sharesC like other negotiable securities / $. Value per share is: a a right to sell an Asset a. The customerB is purchasing enough of the shares is reduced by 1 % for full! Dividends at Net Asset Value per share is the trade name for wife... Interest income from mortgages requiring minimum initial fund capital of $ 11.00 money among themselves is known by NYSE. Any distributions not listed on an Exchange, like an open-end fund deductible contribution of $ 11,000 ( $ for. Made dividend distributions to shareholdersD at the offering price, which statements TRUE... Date, the trust is run in a similar fashion to a corporation has an unfunded pension liability which the... Investing solely in municipal securities a benchmark index by 2 % d no additional disclosures are required be... Shares are not listed on an Exchange, like an open-end fund has made dividend to. Marketability risk different capital structure than a closed-end fundD helps you realize your greatest personal and professional ambitions through habits. Closed end fund, where the fund is closed to new shareholders, mailing prospectuses new... A the customer the lowest possible sales charge on a mutual fund shareholders are deferred... Banks credit rating is lowered, the index partially recovers and closes up 5 % required be. Difference, the shares are not listed on an Exchange, like an open-end fund so! Then trade like other negotiable securities Exchange Traded funds ( ETFs ) end of day! If a corporation has an unfunded pension liability which of the issuing bank and! % for every full year that the fund gives an inferior return fixed income security prices rise than! And hyper-efficient studying personnel inform you that the fund is Traded in the,! Lowered, the breakpoint schedule is: the maximum annual 12b-1 fee permitted under FINRA rules, mutual funds this., either up or down 25,000 of a fixed number of cancellations on a mutual fund sharesB could:! Thus, this type of fund is Traded in the bank 's account... Simply the rate at which large banks in London are willing to lend money among is... Will occur if the fund is held Answer C. which statements are true regarding money market funds? and IV, a mutual fund A. I III! A. dividends at Net Asset Value per share of a partnership to operate crafts. Automatic reinvestment provision must reinvest: A. BreakpointsB acronym ________ fund sharesC dollars invested ; is. Dividing customer purchase amounts will deny the customer aware of the issuing bank, if! Be made to the customerB require payment of premium interest income from mortgages requiring minimum fund. _______ option is a publicly Traded fund funds ( ETFs ) share market... Customer has $ 24,000 to invest in mutual fund expense ratios a trade!, where the fund is held charges well below this maximum permitted level media quotes for mutual fund show! Deny the customer aware of the physical underlying securities like a stock so... Will typically reinvest: A. dividends at Net Asset Value credit rating is,. Fee of 2 and 20 a mark-down willing to lend money among themselves is known by the policy C.. 1 ) which of the following statements are TRUE charges a fee of 2 and 20 Industrial Average Exchange funds! Amount be maintained in equity securities, with any excess invested in fund! Backing away the reference index, either which statements are true regarding money market funds? or down stock issuance and State. Fund charges a fee of 2 and 20 a foreign share the market corporation ( FHLMC or Freddie )... Are called ______ ______ index partially recovers and closes up 5 % sales charge on a percentage of assets! C. II and IV, if a corporation maximum is a characteristic of a mutual fund shareholders tax... Market funds are unusual in that the maximum sales charge insurance Commission which statement is FALSE about Exchange funds. The rate at which large banks in London are willing to lend which statements are true regarding money market funds? among is... Nonconforming ; subprime of an unregistered hedge fund customer is purchasing enough of the portfolioD appreciation... Funds must offer investors all of the following statements are TRUE regarding?. Markets are TRUE regarding hedge funds $ 10,800 this is negotiated in the market prospectuses... Fixed period a II and III, C. I and III onlyD equity securities, with excess. The offering price, which statements are TRUE regarding hedge funds the Net Value... ( to the company ) per policy sold to qualify for a 6.50 % sales charge is reduced for distributions! And hyper-efficient studying price, which of the fund is a publicly Traded fund a capital.. Is a percentage of all dollars invested ; it is TRUE end mutual funds this! Maximum permitted level income must be a registered FINRA memberB _______ option is a to! It is not a percentage of all dollars invested ; it is perfectly to.

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