ProductsQuestion 15 of 110
When a shareholder redeems open-end fund shares, the fund must transmit payment within:
a.One business day
b.Three business days
c.Seven calendar days
d.Thirty calendar days
Explanation
The Investment Company Act of 1940 requires redemption proceeds to be paid within seven calendar days of a proper request, absent an SEC-permitted suspension. One and three days reflect general securities settlement conventions, not the statutory redemption deadline, and thirty days is far outside the requirement.
Law Reference: Investment Company Act of 1940Practice all 110 questions free — no signup required.
Related questions on this topic
- An investor plans to place $15,000 in a fund but expects to need the money in about two to three years. Which share class is generally most suitable?
- Which statement most accurately describes Class B mutual fund shares?
- A fund's expense ratio represents:
- To be classified as a diversified investment company, a fund must satisfy the 75-5-10 test, which requires that:
- Which statement correctly distinguishes accumulation units from annuity units in a variable annuity?
- A variable annuity contract has an assumed interest rate (AIR) of 4%. In a month when the separate account earns 6%, the annuitant's next payment will:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Series 6 — Investment Company & Variable Contracts Rep · How we review