Products & RisksQuestion 19 of 125
The public offering price (POP) of a mutual fund share with a front-end sales load is calculated as:
a.Net asset value minus the sales charge
b.The market price set by exchange trading
c.Net asset value plus the sales charge
d.A fixed price set by FINRA
Explanation
For a front-end load fund, the public offering price equals the net asset value per share plus the sales charge. Investors buy at the POP and, absent a load, redeem at NAV. Closed-end funds, by contrast, trade at market prices that may be above or below NAV.
Law Reference: Investment Company Act of 1940Practice all 125 questions free — no signup required.
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