ProductsCâu 7 / 110
Which statement about a letter of intent (LOI) for mutual fund breakpoints is correct?
a.It is a binding contract requiring the investor to complete the purchases
b.It covers a period of 24 months and cannot be backdated
c.It permits the investor to count purchases made in any other fund family
d.It covers 13 months and may be backdated up to 90 days to include a prior purchase
Giải thích
An LOI lets an investor obtain a reduced sales charge by pledging to invest a stated amount within 13 months, and it may be backdated as much as 90 days so a recent purchase counts toward the goal. The letter is not binding: if the investor does not complete it, the fund simply liquidates escrowed shares to collect the higher sales charge. Purchases in unrelated fund families do not count toward the LOI.
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
- A fund's public offering price is $12.50 and its net asset value is $11.50. What is the sales charge percentage?
- 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 customer wants to invest $24,000 in a fund whose next breakpoint occurs at $25,000. The representative processes the $24,000 order without mentioning the breakpoint. This conduct is best described as:
- Rights of accumulation differ from a letter of intent in that rights of accumulation:
- A 12b-1 fee charged by a mutual fund is used primarily to pay for:
- A fund may describe itself as "no-load" only if its annual 12b-1 charges do not exceed:
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