Products & Their RisksQuestion 117 of 398
Under FINRA rules, the maximum sales charge on the purchase of open-end mutual fund shares generally may not exceed:
a.5.0% of NAV
b.6.25% of the offering price
c.7.0% of NAV
d.8.5% of the offering price
Explanation
FINRA limits the maximum sales charge on mutual fund shares to 8.5% of the public offering price. To charge the full 8.5%, a fund must offer certain shareholder benefits such as breakpoints, rights of accumulation, and dividend reinvestment at NAV; otherwise the maximum is lower.
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