RegulationsCâu 49 / 110
Breakpoint selling is best defined as:
a.Recommending a purchase just below the amount that would qualify for a reduced sales charge, without disclosing the discount
b.Selling shares of two different fund families to the same customer
c.Charging a sales load on reinvested dividends
d.Recommending Class A shares to a customer with a short time horizon
Giải thích
Breakpoint selling deprives the customer of a quantity discount so the representative earns a larger commission, which is why it is treated as a sales practice violation. Diversifying across fund families is permissible when suitable, though it may forfeit breakpoints and should be discussed. Charging loads on reinvested dividends and mismatching share classes are separate problems.
Trích dẫn luật: FINRA Rule 2341 (Investment Company Securities)Luyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Under the Investment Company Act of 1940, what portion of a registered fund's board must consist of directors who are not affiliated with the fund's adviser or underwriter?
- Before a newly formed open-end fund may offer shares to the public, the Investment Company Act of 1940 requires it to have:
- A fund's board wants to change the fund from a growth objective to an aggressive high-yield bond objective. This change requires:
- A representative repeatedly redeems a customer's shares in one fund family and reinvests the proceeds in a similar fund at another family, generating a new sales charge each time. This practice is called:
- Urging a customer to buy fund shares immediately so the customer can "capture" an upcoming distribution is prohibited because:
- A representative learns that an institutional customer is about to place a very large buy order and immediately buys the same security for a personal account. This is:
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