Sản phẩm & Rủi roCâu 65 / 398
An investor wants to invest a modest amount for only about two to three years. Which share class is often most appropriate?
a.Class C shares, because of no front-end load and a short-lived, small back-end charge
b.Class A shares, to capture breakpoint discounts
c.Class B shares, to benefit from a long declining CDSC schedule
d.No-load shares are prohibited for short horizons
Giải thích
Class C shares typically carry no front-end load and only a small contingent deferred sales charge that lapses after about one year, but they have a higher ongoing 12b-1 fee. For a small, short-term investment, avoiding the front-end load makes Class C often more suitable than Class A or B.
Trích dẫn luật: FINRA Rule 2341Luyện miễn phí toàn bộ 398 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- A mutual fund has total assets of $50 million, total liabilities of $2 million, and 4 million shares outstanding. What is the net asset value (NAV) per share?
- An investor plans to make a large lump-sum investment and hold it for 20 years. Which mutual fund share class is generally most cost-effective for this investor?
- Class B mutual fund shares are best described as shares that:
- A Letter of Intent in a mutual fund purchase allows an investor to:
- Breakpoints on Class A shares reduce the sales charge based on the size of the investment. Which of the following would typically qualify a purchase for a breakpoint discount?
- A registered representative recommends that a client invest $24,000, an amount just under a $25,000 breakpoint, so the transaction avoids reduced sales charges. This practice is known as:
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