ProductsQuestion 5 of 110
Under FINRA rules, an open-end fund may impose the maximum permitted sales charge of 8.5% only if it offers which combination of features?
a.A no-load share class, quarterly dividends, and daily liquidity
b.A guaranteed minimum return, breakpoints, and monthly statements
c.Breakpoints, rights of accumulation, and reinvestment of dividends at net asset value
d.Rights of accumulation, a letter of intent, and a contingent deferred sales charge
Explanation
FINRA conditions the 8.5% maximum on the fund giving investors quantity discounts (breakpoints), rights of accumulation, and the ability to reinvest distributions at NAV; a fund lacking any of these must charge less. No fund may guarantee a return, and offering a no-load class is not a condition of charging a load. A letter of intent and a CDSC are optional features, not the required trio.
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- Rights of accumulation differ from a letter of intent in that rights of accumulation:
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