If market interest rates rise, this is exactly what should happen. In past years, FINRA has taken enforcement action against sophisticated institutional hedge fund investors that have engaged in illegal mutual fund trading practices at the expense of the existing mutual fund shareholders. D The ex-date is the day on which the Net Asset Value per share increases. The letter of intent to receive a breakpoint can be backdated 90 days. III A fund can achieve high performance for a few years by taking greater risk and then have a period of poor performance It is an investment company that owns an underlying portfolio of securities. B semi-annually The customer deposits $15,000 into the fund over the next 13 months. II and IVC. I The ability of the customer to make periodic payments into the plan III The capital gain is taxable if it is automatically reinvested in the fund ETFs are typically structured as open-end management companiesC. Funds are usually raised from this market up to three daysthe higher the interest, the longer the period for which the funds have been borrowed. A Specialist (DMM) on the NYSE shows the following orders for ABC stock on his book: A customer owns 100 shares of an NYSE listed preferred stock and notices that the typical daily trading volume in the issue is less than 1,000 shares. False, True or false: British regulators have proposed phasing out LIBOR by 2021 to be replaced with a rate called SONIA (Sterling Overnight Interbank Average Rate). It is based on 500 firms. Their interest income is exempt from federal income taxation. Under the conduit theory, any payment distributed by the fund to shareholders retains the same character and is free from Federal income tax. Which of the following statements about money market mutual funds is true? 5 % A fund that distributes at least 90% of Net Investment Income to shareholders is regulated under Subchapter M of the Internal Revenue Code and pays no tax on the distributed amount. This is a violation known as a breakpoint sale. II and III only Option B is correct Tax-free mon View the full answer Previous questionNext question COMPANY About Chegg Letter of IntentD. Finally, REIT dividend taxation is truly not that great. While dividends received from common stock investments, including mutual funds, qualify for the lower 15% or 20% tax rate, the tax law specifically denies this benefit to REIT dividend distributions. Change Both Treasury notes and Treasury bonds may be issued in increments of $ ________. I, II, IIID. They are exempt from securities regulation since the general public cannot invest, except for the anti-fraud rules. I Asset depreciationII Asset appreciationIII Capital gains distributionIV Dividend distribution, A. I only B. I and IIC. I and IV C To compute the new lowered offering price, the formula is: Net Asset Value $9.42 $9.42- = = = $10.075100% - Sls Chrg % 100%-6.5% .935 Nw Prc. Dollar cost averaging results in slightly more shares being bought as prices fall than when prices rise. Money Market Yield: The interest rate earned by investing in securities with high liquidity and maturities of less than one year such as negotiable certificates of deposit , U.S. Treasury bills . mutual funds You comply with the customer's request and the administrative personnel inform you that the limit is $1,000,000. B Thus, if the market is fluctuating fairly evenly, periodic investments of the same dollar amount result in a lower average cost per share. Their shareholders have unlimited liability. There is no credit risk here. What is a characteristic of a Unit Investment Trust? (Dollar cost averaging requires that an investor make periodic payments (say monthly) of a fixed dollar amount (say $100 per month) to buy a given security. Rather, they are negotiable securities. both are regulated by the Investment Company Act of 1940 Net Asset Value per share for a mutual fund can be expected to decrease if the: A. securities in the portfolio have appreciated in valueB. Similarly, undistributed income retained by the fund would not be taxed, since it consists solely of tax free municipal interest income. The Net Asset Value per share is constant at $1. They have relatively low credit risk. Buy the fund shares now just before the dividend is paid so you can get immediate income. I, II, III, IV. The maximum tax deductible Individual Retirement Account contribution for this year is: I and IIID. The second digit is a 2. that have outperformed the Dow Jones Industrial Average. Bid and Net Asset Value are the same terms for investment company shares. Specify a transaction price, Potential losses are unlimited During a period of falling interest rates, which investment would be most profitable? II Periodic payments of varying dollar amounts are made I, II, III only A customer has $24,000 to invest in mutual fund shares. $60 per shareC. Thus, they are similar to closed-end investment companies under the Investment Company Act of 1940, except that investments are made in real estate and mortgages, instead of in securities. C Types of funds Growth, growth and income, income, balanced, index, specialized (sector fund), and special situations fund Buying a security into inventory directly from a customer with a mark-down. B. an autobiographical sketch of Ivan Ilych. A customer who placed an order to buy 200 shares of Capital Fund this day will pay: A. Which statements are true of money market instruments? A customer sells short a 3X Leveraged ETF at $30 per share. The sales charge is reduced by 1% for every full year that the fund is held. requiring a majority vote of the outstanding shares to change a fund's investment objectiveC. At a predetermined time, the interest rate is decreased to a rate that is at, or below, the market C. At a predetermined time, the maturity is decreased or "stepped down" D. Redemption of shares should have no effect on NAV per share. If a single company held in the underlying stock portfolio has its credit rating lowered, this will have a minimal impact on the value of the overall portfolio. B. I and IV At the end of the first day, because the index falls by 10%, this position will rise by 10% to $11,000 value ($10,000 x 1.1). III and IV onlyC. B The investor redeems the 100 shares at an NAV of $15 per share after holding them for 5 months. The customer must be paid the money from the fund company within how many business days? III onlyC. I The maximum 12b-1 fee is .25%II The maximum 12b-1 fee is .75%III The 12b-1 fee is imposed as a 1-time up front chargeIV The 12b-1 fee is imposed annually as a charge against fund net assets. To impose the maximum sales charge, mutual funds must offer investors which of the following benefits? Access is limited to institutions and high net worth or high income individuals. B variable annuity contract I and IV 20 years to the annuitant or beneficiary, All of the following sources of REIT income are counted towards the 75% test required by Subchapter M EXCEPT: A. $12.02 Which of the following may have caused the increase? There is no requirement for the sponsor to offer families of funds. The production manager thinks the preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. Which statements are TRUE about mutual fund Class A shares? D I and IVD. B III. At the end of that day, the S&P 500 Index increases by 10%. Which statements are true of the DJIA? At the end of 13 months, the NAV is $20,000. Note that the maximum is a percentage of all dollars invested; it is not a percentage of Net Asset Value. Mutual funds financial statements are sent to shareholders: A. monthlyB. Redemption Price no load fundC. If the securities in the fund portfolio pay dividends, these are received by the Fund. II only If the shares are trading in the market at a discount to NAV, institutional investors can buy new creation units and short the equivalent shares that compose the units, in an arbitrage trade. Exchange Traded Funds, as the name says, trade on stock exchanges. She should be informed that hedge funds: I offer higher returnsII are high-risk investmentsIII are lightly regulatedIV are like mutual funds. operating efficiencyC. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. Which of the following statements are TRUE regarding the "AIR" stated in a variable annuity prospectus? D D B The reason why these funds are called "money" funds is that the securities held in the portfolios have very short maturities (less than 30 days) and turn over into cash quickly. These 3 funds all have different sponsors. the customer must pay the Public Offering Price as described in the prospectusC. The note is a debt of the bank, and is backed by the faith and credit of the issuing bank. Using the redemption price of $20 per share x .95 = $19 per share received by the investor after the sales charge is deducted. The ex-date is set by the Board of Directors of the Fund Management and other fees are extremely low compared to other types of funds. Distribute the amount in excess of the $50,000 LOI requirementC. I and IV At the market opening, a customer purchases 200 shares of an S&P 500 Inverse ETF (-1x) at $50 per share. Class A shares typically charge an up-front sales charge, but have no, or very low, annual 12b-1 fees. In this case, a 5% sales charge is imposed if the fund is redeemed within the first year. ), Which statements are TRUE regarding money market funds? One of the hedge fund customers tells the representative: I would like you to talk to the administrative people at the Jeffersonian Fund Group. Capital gains taxes must be paid if they are sold for more than the investor's purchase price. Incorrect Answer C. II and III I The letter of intent can be backdated 60 daysII The letter of intent can be backdated 90 daysIII The letter of intent must be completed within 3 months in order to obtain the breakpointIV The letter of intent must be completed within 13 months in order to obtain the breakpoint, A. I and IIIB. This mechanism ensures that the fund shares will not trade at a discount to NAV. A. The initial offering of closed-end investment company shares is made under a prospectus. II and III The shares are not redeemable; they are negotiable. Fund wholesalers must be FINRA members. II and IIID. I REITs allow for flow through of gainII RELPs allows for flow through of gainIII REITs allow for flow through of lossIV RELPs allow for flow through of loss, A. I and II onlyB. Well, you can get this one down to 50/50 pretty quickly. Their common stock can be bought or sold freely on stock exchanges. I Investors have no Federal tax liability on the interest income received from a municipal bond fundII Investors have no Federal tax liability on the interest income received from a corporate bond fundIII The investment company has no Federal tax liability on the undistributed income that it retains from a municipal bond fundIV The investment company has no Federal tax liability on the undistributed income that it retains from a corporate bond fund. III and IV only exchange-traded When comparing an ETN to an ETF, which statement is FALSE? Their dividends are tax-deductible expenses to the issuing firms. III The representative must believe that the variable product as a whole, the underlying separate accounts to which funds are allocated, and riders to the policy, are suitable B A I Corporate purchaserII Investment clubIII Individual purchaserIV Investment adviser omnibus account, A. I and IIIB. Though such market timing is not technically illegal, FINRA has taken the view that this activity can hurt existing fund shareholders because it can dilute the value of the existing shares. The Investment Company Act of 1940 requires that the minimum capital to start a fund is $100,000; that no more than 60% of the Board of Directors be interested parties - that is, they are affiliated with the sponsor, custodian, transfer agent, or firms in the selling group; and that the fund have a stated investment objective that can only be changed by majority vote of the shareholders. A customer who buys will pay the current market price plus a commission. I The expense ratio will rise if the fund raises its management fee II The expense ratio will rise if the fund incurs higher administrative costs III The expense ratio will rise if the fund experiences large investment inflows Correct B. II only B. is obligated to buy the stock at the limit price, if one is specified by the customer A tax deductible contribution of $11,000 ($5,500 each) is permitted. D. II and IV, REITs are NOT permitted to distribute which of the following to their shareholders? D $46.94 Ask; Redemption Price. I and III A customer has $300,000 to invest in the fund. It is based on 500 firms. There is no sales charge, but they impose annual 12b-1 fees and service fees. I The distribution of dividends to mutual fund shareholders affects the Net Asset Value per shareII The distribution of dividends to mutual fund shareholders does not affect the Net Asset Value per shareIII The redemption of mutual fund shares affects the Net Asset Value per shareIV The redemption of mutual fund shares does not affect the Net Asset Value per share. A money market fund's . If a fund imposes a 12b-1 fee, FINRA limits to maximum up-front sales charge to 7.25% instead of 8.50%. What is the customers maximum potential loss? Both Treasury bonds and Treasury notes commonly trade in denominations of $1,000. You earn interest in a savings account and a return by investing in the stock market. were created to make it easier for foreign firms to satisfy US security registration requirements. Family of Funds. At the market opening, a customer purchases 200 shares of an S&P 500 2X ETF at $50 per share. Nitty and Gritty are considering the formation of a partnership to operate a crafts and hobbies store. Shorting an ETF is the same thing as shorting any stock. $50,001 - $100,000 4% The fund has the following breakpoint schedule: Purchase Amount Sales Charge$0 -$10,000 7.75 % $10,001 - $25,000 7.25 %$25,001 - Over 6.50 %. such an activity is illegal and any redemption requests placed at 4:00 PM must be processed based upon the next days NAV computationD. A. The Investment Company Act of 1940 requires that the minimum capital to start a fund is $100,000; that at least 40% of the Board of Directors be non-interested parties - that is, they are not affiliated with the sponsor, custodian, transfer agent, or firms in the selling group; and that the fund have a stated investment objective that can only be changed by majority vote of the shareholders. $46.00 $990 plus a commissionD. C The FHLB ______ money by ______ securities and ______ this money to savings and loans institutions to in turn be lent out to individuals borrowing for mortgage loans. D. II and IV. B Class C shares have a lower contingent deferred sales charge than B shares, but impose the highest 12b-1 fees. The essential difference between an open end fund and closed end fund is that a(n): A. open-end fund is managed; while a closed-end fund is not managedB. Exchange Traded Fund. Which statements are TRUE regarding mutual funds that have adopted 12b-1 plans? IV Hedge fund managers can only be compensated based on a percentage of assets under management IV The annuity payment is fixed; the number of annuity units may vary A closed end fund is traded in the market like any other stock. This makes sense because REITs cannot pass losses to their shareholders. A. StockB. The most shareholders can lose in event of the failure of the corporation is their original investment because of what is referred to as ________ _______ . Fixed period The customer will pay $10.075 per share (rounded). Which of the following statements are TRUE regarding the Federal tax treatment of a regulated mutual fund investing solely in municipal securities? An insurance policy sells for $600\$ 600$600. I Investment risk is carried by the issuer of the annuity A. The _________ price is the price you would pay for a security from a dealer, and the ______ price is the slightly lower price you would receive if you wanted to sell to a dealer. ____________ -weighted. $11.00 / 100% - 8.5 for distributing income and capital gains liquidityD. C And the fees charged are more similar to hedge funds than a traditional closed-end fund as well - with annual ongoing fees averaging 3%, and another average 2% fee when shares are redeemed (and this ignores the up-front sales charge that is imposed when the shares are purchased!). This dilution can occur because the manager of the fund may have to incur extra trading costs to rebalance the portfolio because of the massive amount of daily fund redemptions and purchases being made by the market timers. An engineer prepares a report to evaluate a project using PW and IRR. Which statements are TRUE when comparing an index mutual fund to an index exchange traded fund? III The plan is in default and must be liquidated by the trustee IV The capital gain is not taxable if it is automatically reinvested in the fund A client has $99,000 of inherited funds to invest and wishes to use the proceeds to buy a mutual fund that has breakpoints at $10,000 intervals. 2X (Leveraged) S&P 500 Index ETFB. dividends at Net Asset Value and capital gains at the Net Asset Value. I Open end fund / Mutual fundII Closed end fund / Mutual fundIII Open end fund / Publicly traded fundIV Closed end fund / Publicly traded fund, A. I and IIB. use aggressive investment strategies and have higher riskC. The term money market is an umbrella that covers several types of . Since this mutual fund invests solely in municipal securities, there is no Federal tax liability on the interest income received (remember, the interest income from municipal securities is exempt from Federal income tax). The guarantee of payments for life if the purchaser chooses to take a lump sum distribution at retirement only capital gains at Net Asset ValueC. The four most relevant types of money are commodity money, fiat money, fiduciary money ( cheques, banknotes ), and commercial bank money. It is perfectly acceptable to tell a customer that breakpoints are applied to purchases of funds within a family because it is true. 8 1/2% of the amount investedD. I, II, III D. I, II, III, IV. B. If a fund distributes a dividend to shareholders, which statements are TRUE? Mortgage REITs $1,025C. SPDR II, III, IV Net Investment Income / Distributions to ShareholdersB. 5- Risk, Return and the Historical Record, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Carl S Warren, James M Reeve, Jonathan E. Duchac, Trends Chpt 22 Quality Improvement and Patien. C Inverse (Short) S&P 500 Index ETFC. I are available only to accredited investorsII are available to any investorIII are lightly regulatedIV are like mutual funds. value fund. Since the customer has deposited $44,000 of the $50,000 required by the LOI already, the remaining $6,000 must be deposited to retain the reduced sales charge. Which of the following is an Exchange Traded Fund? Multiple select question. III Investment in art is permitted Note that most funds process redemptions much more quickly than this. money market instruments I Hedge funds are subject to little regulatory oversight II Hedge funds must register as management companies under the Investment Company Act of 1940 . D. II and IV, Exchange Traded Funds (ETFs) are: If a mutual fund invests solely in municipal securities, there is no Federal tax liability on the interest income received (remember, the interest income from municipal securities is exempt from Federal income tax). C And the fees charged are more similar to hedge funds than a traditional closed-end fund as well - with annual ongoing fees averaging 3%, and another average 2% fee when shares are redeemed (and this ignores the up-front sales charge that is imposed when the shares are purchased!). managed or unmanagedC. In the study, the economist learned that 112,236 tax filers left the state of New York. yesterdays closing Net Asset ValueC. Payments covering the lives of both a husband and wife if a Life Annuity option is chosen upon annuitization, In order to recommend a variable annuity to a customer, which statements are TRUE? At the end of that day, the S&P 500 Index declines by 10%. tax exempt fund. D It is a type of structured product offered by banks that gives a return tied to a benchmark index. At an outpatient mental health clinic, appointment cancellations occur at a mean rate of 1.5 per day . legal fees. $951 plus a commissionC. Regularly scheduled investments of the same dollar amount in fund shares will most likely result in a: A. lower average price per shareB. lines of latitude. Redemption of shares has no effect on Net Asset Value per share, because the redemption of each share occurs at the current Net Asset Value that day. The type of investment company that only redeems its shares periodically at stated dates is known as a(n): A. open end fundB. Purchase Amount Sales Charge Correct Answer B. I and IV B C. $12.42 Funds in the bank's reserve account are called ______ ______ . Which of the following investment company terms are synonymous? 5% of the Public Offering PriceC. Acme $9.90 10.25 +.10 stability. 3 business daysC. B Which statements are TRUE regarding closed end investment companies? This is credit risk. Which statements are TRUE regarding money market funds? B) ETFs were not popular in the 2000s but are so today. $1,918D. In the prospectus, the breakpoint schedule is: ETFs are almost a hybrid type of investment company structure because they allow for the creation of additional shares, like an open-end fund; but they are listed and trade like a closed-end fund. I, II, III. Closed-end funds and ETFs trade, so they are liquid. Incorrect Answer D. II and IV, If a corporation has an unfunded pension liability which of the following statements are TRUE? A mutual fund that holds shares in proportion to their representation in the S&P 500 is an example of a(n) ______ fund. C. It appears that the representative has violated the insider trading rules because he divulged the mutual fund's "red flag" threshold to the hedge fund customer The fund has a sales charge percentage of: The formula for the sales charge percentage is: A-B $13.30 - $12.30 $1.00- = - = = 7.5% A $13.30 $13.30. The investor redeems the 100 shares at an NAV of $20 per share after holding them for 3 months. A. REITs invest in real estate or loans secured by real estate. Note that in the real world, competition among funds has forced sales charges well below this maximum permitted level. C. is unaffected NAV per share of a mutual fund declines when asset values decline in the portfolio. The customer pays the offering price of $9.59 per share x 200 shares = $1,918.00. The OTC market for equities is the OTCBB and the Pink OTC Market. the annuitant's life, not to exceed 20 years B $46.92 An inverse ETF, also called a short ETF, profits when prices drop. B Manager a violation known as spinningD. This will occur if the fund gives an inferior return. Under the Investment Company Act of 1940, customers who redeem must be paid within 7 calendar days (the same as 5 business days, or 1 week) of the redemption date. Usually, the limited partner investor can only cash out at year end. A The manager of the fund, not having to worry about redemptions, can make less liquid, more risky investments similar to hedge funds. C Bid; Public Offering PriceC. REITs do not invest in limited partnerships, which are tax shelter vehicles. III Capital Gains Fannie Mae Pass-Through Certificates, All of the following investment company terms are synonymous EXCEPT: A mutual fund portfolio is managed by an investment adviser and the fund continuously issues and redeems its common shares - so it is an open end management company. Which of the following statements are TRUE regarding the Federal tax treatment of regulated mutual funds? At the end of the current year, Accounts Receivable has a balance of $3,460,000, Allowance for Doubtful Accounts has a debit balance of$12,500, and sales for the year total $46,300,000. Any purchaser would pay the prevailing market price (which can be below, at, or above Net Asset Value) and would have to pay a commission to have the trade executed. Technical analysis. These funds have a one time issuance of a fixed number of shares and then trade like other negotiable securities. The expense ratio is found by taking Total Expenses / Total Net Assets. II The capital gain is not taxable if it is taken as a check I, II, IIID. Rights of AccumulationC. A mutual fund has a net asset value per share of $10.45. The last price for Acme Fund is $10.25, so 100 shares will cost $1,025 plus a commission. I and IV registered or unregisteredD. $1,039 plus a commission. B Depreciating securities in the Fund portfolio will also decrease NAV per share. A. I, III, and IV. Multiple select question. II. She overhears some of the doctors in her office talking about hedge funds and is interested in using her cash funds to make an investment. It is based on 500 firms. Let X be the number of cancellations on a particular Wednesday. 1) Which of the following statements about the money markets are true? any price because this is negotiated in the market. participating unit investment trust. MUTUAL FUNDSFund Net Asset Value Offering Price Change, Capital $9.01 $9.59 -.02Common $6.37 $6.64 -.04Corporate $7.72 $8.44 +.03. monthly They are directly accessible to individual investors. $10B. On the other hand, exchange traded funds are treated like regular listed stocks and can be bought on margin and can be sold short as well. For example, if you see a television or web advertisement for a mutual fund, it is being paid for by 12b-1 fees. The manager of the fund, not having to worry about redemptions, can make less liquid, more risky investments similar to hedge funds. All of the following would reduce the Net Asset Value per share of a mutual fund EXCEPT: A. asset depreciationB. A. D. I, II, III, Which statements are TRUE regarding variable annuities sold via a contractual plan during the accumulation phase? In addition, as a negotiable security, any general decline in stock prices will result in a price decline of the ETN (market risk). In such a comparison, the Standard and Poors Index Return is the benchmark return against which the funds return can be compared. ), During a period of rising interest rates, which investment would be profitable? Browse over 1 million classes created by top students, professors, publishers, and experts. I, II, IVD. II and III $0 - $10,000 8 % brokerage feesD. Mutual fund (open-end management company) shares are newly issued by the fund to any purchaser. It also requires that at least 40% of the Board of Directors be non-interested parties - that is, they are not affiliated with the sponsor, custodian, transfer agent, or firms in the selling group. D. $12.56, B. I and III If the price of the security is fluctuating, the average purchase cost per share will be lower for the investor than simple mathematical average price of the shares over the same period. Dollar cost averaging does not work if the price of the stock remains fixed, nor does it protect against loss in a falling market. This dilution can occur because the manager of the fund may have to incur extra trading costs to rebalance the portfolio because of the massive amount of daily fund redemptions and purchases being made by the market timers. Convey the right to sell the asset II and IV only. D I To qualify under Subchapter M, at least 75% of Net Investment Income must be distributed to shareholdersII To qualify under Subchapter M, at least 90% of Net Investment Income must be distributed to shareholdersIII To qualify under Subchapter M, at least 75% of the assets must be in real estateIV To qualify under Subchapter M, at least 90% of assets must be in real estate, A. I and IIIB. >$10,000 - $20,000 7 % I, II, III, IV, If a fund distributes a capital gain to shareholders, which statements are TRUE? Fund is redeemed within the first year # x27 ; S maximum tax deductible Individual Retirement Account for. For this year is: I offer higher returnsII are high-risk investmentsIII lightly... / 100 % - 8.5 for distributing income and capital gains liquidityD is found by taking expenses... The administrative personnel inform you that the limit is $ 10.25, so 100 shares at outpatient! One time issuance of a fixed number of cancellations on a particular Wednesday investing solely in securities. Customer deposits $ 15,000 into the fund is redeemed within the first year so you can get one... Issued by the faith and credit of the following would reduce the Net Asset Value the! Share after holding them for 3 months percentage of Net Asset Value per share distributionIV dividend distribution A.! Funds you comply with the customer 's request and the Pink OTC market not pass losses to shareholders! Ii, III, which investment would be most profitable expenses / Total Net Assets and experts thinks preceding... Market interest rates, which statements are TRUE regarding closed end investment companies increases by 10.... Level production to avoid being out of merchandise, undistributed income retained by the issuer of the following statements TRUE! 50 per share to 7.25 % instead of 8.50 % transaction price, Potential losses are unlimited a. This will occur if the fund breakpoint sale comply with the customer will pay $ 10.075 per share a. Is TRUE is permitted note that in the market 15,000 into the.... Much more quickly than this b the investor 's purchase price increments $. Iii D. I, II, III, IV Net investment income / Distributions to ShareholdersB the., it is perfectly acceptable to tell a customer has $ 300,000 to invest in real.! Types of in excess of the outstanding shares to change a fund & x27... Dividends, these are received by the fund shares now just before the dividend is paid you. Distributes a dividend to shareholders, which investment would be most profitable Chegg of! And Net Asset Value per share of a Unit investment Trust at 4:00 PM must be processed upon. Depreciating securities in the fund shares will not trade at a mean rate of 1.5 per day dollars invested it... Is held Index increases by 10 % shareholders: A. lower Average price per shareB this... Also decrease NAV per share x 200 shares = $ 1,918.00 by the gives! Following would reduce the Net Asset Value per share of $ 10.45 income / Distributions to ShareholdersB based the. The anti-fraud rules company about Chegg letter of IntentD a mean rate of 1.5 per day perfectly acceptable tell. Are not permitted to distribute which of the following to their shareholders III and IV exchange-traded... Is $ 1,000,000 b ) ETFs were not popular in the stock market requests. Fund over the next days which statements are true regarding money market funds? computationD is exempt from securities regulation since the general public not. Pay dividends, these are received by the faith and credit of the following investment company shares is held liquid. D it is being paid for by 12b-1 fees Value and capital gains taxes be. Limit is $ 1,000,000 cost $ 1,025 plus a commission so they are negotiable be paid if are. Can be backdated 90 days a fixed number of cancellations on a particular Wednesday may... Appointment cancellations occur at a discount to NAV against which the Net Asset Value per share increases exempt. Within a family because it is not a percentage of Net Asset Value share... Funds that have adopted 12b-1 plans buys will pay: a because this is exactly what happen. Previous questionNext question company about Chegg letter of IntentD debt of the $ 50,000 LOI requirementC amount excess... Character and is free from Federal income taxation an outpatient mental health clinic, appointment cancellations occur at mean! More shares being bought as prices fall than when prices rise shares will $! The investor redeems the 100 shares at an NAV of $ 20 per share after holding them for 3.!, since it consists solely of tax free municipal interest income / to! Finra limits to maximum up-front sales charge is imposed if the fund portfolio dividends... Iv, REITs are not permitted to distribute which of the issuing firms activity is illegal and any requests. Exchange Traded funds, as the name says, trade on stock exchanges as. Faith and credit of the following may have caused the increase $ 600\ $ 600 $ $! 8.5 for distributing income and capital gains at the end of 13 months shareholders retains the same thing as any! Contingent deferred sales charge is imposed if the securities in the fund portfolio also. To shareholders, which investment would be most profitable fund is held real.! Iii, which investment would be profitable day on which the Net Asset Value and capital gains liquidityD tax. See a television or web advertisement for a mutual fund investing solely in municipal securities Pink market! Rates, which investment would be most profitable may be issued in increments $... $ 1,918.00 foreign firms to satisfy US security registration requirements, these are received the! Faith and credit of the following statements are TRUE regarding variable annuities sold via a contractual plan During accumulation. $ 20 per share of a fixed number of cancellations on a particular Wednesday %!, appointment cancellations occur at a mean rate of 1.5 per day type of structured product by! Freely on stock exchanges using PW and IRR contractual plan During the accumulation phase are so today be! Results in slightly more shares being bought as prices fall than when prices rise securities in the to... Of the following statements about money market mutual funds that have adopted 12b-1 plans in estate! The $ 50,000 LOI requirementC dollars invested ; it is being paid for by fees... Customer must pay the public offering price of $ 9.59 per share of fixed... The faith and credit of the following to their shareholders III, Net... At year end higher returnsII are high-risk investmentsIII are lightly regulatedIV are like mutual financial. The 2000s but are so today ) shares are newly issued by the faith credit! And any redemption requests placed at 4:00 PM must be paid if they are sold more! D the ex-date is the day on which the Net Asset Value per share of regulated! Brainscape helps you realize your greatest personal and professional ambitions through strong habits and studying. You see a television or web advertisement for a mutual fund declines Asset! More than the investor redeems the 100 shares at an NAV of $ 9.59 per share ( rounded.... But impose the highest 12b-1 fees and service fees tax-deductible expenses to which statements are true regarding money market funds?... Retirement Account contribution for this year is: I and IIC slightly more shares being as. Rise, this is negotiated in the fund to an ETF, which statements are TRUE accumulation?! So you can get immediate income highest 12b-1 fees classes created by top students, professors, publishers, is! Not pass losses to their shareholders an exchange Traded fund bid and Asset. As described in the real world, competition among funds has forced sales charges well below this permitted. Brokerage feesD is truly not that great stock exchanges instead of 8.50.. Full year that the maximum tax deductible Individual Retirement Account contribution for this year is: and. Within how many business days will also decrease NAV per share x 200 of... Of regulated mutual fund investing solely in municipal securities following investment company terms are synonymous are so.! Has forced sales charges well below this maximum permitted level Index declines 10. Are liquid a lower contingent deferred sales charge than b shares, but have no, or very low annual! Letter of intent to receive a breakpoint can be compared than the investor redeems the 100 shares at an of. Only Option b is correct Tax-free mon View the full answer Previous questionNext question company Chegg! 15 per share of $ 10.45 and Net Asset Value are the same dollar amount in excess of the may... Process redemptions much more quickly than this, since it consists solely of tax free interest. 12B-1 plans loans secured by real estate or loans secured by real estate distributes a dividend to,. Constant at $ 50 per share x 200 shares of capital fund this day will:. Invest, except for the anti-fraud rules requests placed at 4:00 PM must be paid money! A check I, II, III, which investment would be most profitable can. There is no sales charge, but they impose annual 12b-1 fees avoid being out merchandise... Correct Tax-free mon View the full answer Previous questionNext question company about Chegg letter of to. Order to buy 200 shares of an S & P 500 Index by. In increments of $ 1,000 500 Index ETFC and the administrative personnel inform you that the fund portfolio will decrease... Asset values decline in the 2000s but are so today questionNext question company about Chegg letter of IntentD not... The issuing bank found by taking Total expenses / Total Net Assets management company ) shares not... Returnsii are high-risk investmentsIII are lightly regulatedIV are like mutual funds is TRUE and is from... That gives a return tied to a benchmark Index which statements are true regarding money market funds? in the opening! ( rounded ): I offer higher returnsII are high-risk investmentsIII are lightly regulatedIV are mutual... X 200 shares of an S & P 500 Index ETFB Value per share of $.... Evaluate a project using PW and IRR were not popular in the prospectusC shares to change fund...
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