which statements are true regarding money market funds?

0 0 Similar questions It is a price-weighted index. 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. Which statement is TRUE? At the end of the second day, because the index goes up by 5%, the ETF value will decline by 5%. I The fund has made dividend distributions to shareholdersII The securities in the portfolio have depreciated in valueIII The securities in the portfolio have paid dividends, A. I and II onlyB. What is the permitted maximum contribution to this spousal IRA for the year 2018? requiring minimum initial fund capital of $100,000. A closed end funds Net Asset Value is $8.50. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. To impose the maximum sales charge, under FINRA rules, mutual funds must offer investors all of the following EXCEPT: A. BreakpointsB. Which of the following statements are TRUE regarding the mutual fund letter of intent? 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. They are highly regulated. A certificate -traded in US markets that represents ownership of shares of a(n) ____________ company is referred to by its initials as an ADR. d. All of the above are true regarding ETFs. traded over-the-counter. D For example, if you see a television or web advertisement for a mutual fund, it is being paid for by 12b-1 fees. 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 %. It is based on the composition of the Standard and Poors 500 Index. C. is unaffected I and IVC. II and III onlyD. I At least 40% of the Board of Directors must be non-interested personsII At least 60% of the Board of Directors must be non-interestedIII To establish a fund, a minimum of $10,000 of Total Net Assets is requiredIV To establish a fund, a minimum of $100,000 of Total Net Assets is required. August 15th tax filing date permitted under an automatic extension of the calendar year after which the contribution may be claimed on that person's tax return, A registered representative primarily services institutional hedge fund customers that direct a large volume of trades to that brokerage firm. There is no sales charge, but they impose annual 12b-1 fees and service fees. $1,039D. The best recommendation would be: C The customer does not get any extra discount by going directly to the wholesaler. All of the following would reduce the Net Asset Value per share of a mutual fund EXCEPT: A. asset depreciationB. 5 business daysD. Which of the following statements about real estate investment trusts is true? D I Money market funds are typically sold without a sales chargeII Money market funds typically do not impose management feesIII Fund dividends are not taxable if reinvested in additional sharesIV Typical maturities of securities held in the portfolio are 30 days or less. yesterday's closing Net Asset Value ETF stands for Exchange Traded Funds. II Life Annuity-Period Certain is the preferred payout option An investor buys 100 shares of an open-end investment company with a 5% contingent deferred sales charge. Speculation and aggressive gains, A client surrenders a variable annuity contract 5 years after purchase because of poor performance. A customer has $300,000 to invest in the fund. A. REITs do not allow for flow through of loss - only net income flows through to shareholders under conduit tax treatment. The ex-date is set by FINRA C The maximum annual 12b-1 fee permitted under FINRA rules is: A customer redeems 1,000 shares of ABC Fund. 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. Investments can include short-term U.S. Treasury securities, federal agency notes, Eurodollar deposits, repurchase agreements, certificates of deposit, corporate commercial paper, and obligations of states, cities, or other types of municipal agenciesdepending on the focus of the fund. A Dollar cost averaging results in slightly more shares being bought as prices fall than when prices rise. Explain. Note that most funds process redemptions much more quickly than this. Mortgage Bonds such an activity is illegal and any redemption requests placed at 4:00 PM must be processed based upon the next days NAV computationD. C I The REIT issues common shares representing a proportional interest in the investment company Bonds issued by state and local governments are _______ bonds, often referred to by the __________ nickname bonds. Thus, a closed-end fund share is purchased at the prevailing market price plus a commission (or a mark-up if it is an OTC principal transaction). open end management company At the end of that day, the S&P 500 Index declines by 10%. Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Using the redemption price of $20 per share x .95 = $19 per share received by the investor after the sales charge is deducted. Under FINRA rules, the maximum sales charge that may be imposed by a mutual fund is 8 1/2% of the Public Offering Price. I Minimum initial fund capital of $100,000II Interested persons on the Board of Directors cannot hold over 60% of the seatsIII Changing the funds investment objective requires a majority vote of the shareholdersIV Setting maximum sales charges on mutual fund purchases, A. I and II onlyB. For the customer exchanging Government Bond Fund shares for Growth Fund shares, a tax event has occurred. Thus, they are only suitable for relatively risk tolerant, sophisticated investors. Bad debt expense is estimated at1/21/21/2 of 1% of sales. Label each article definite or indefinite. ), Which statements are TRUE regarding money market funds? The Letter Of Intent (LOI) provision operates separately from Rights of Accumulation and takes precedence over Rights of Accumulation. They invest primarily in real estate and mortgages (under the tax code, at least 75% of the REITs assets must be invested in real estate or mortgages). D However, for a corporate bond fund, since the interest income from corporate bonds is taxable, distributions from the fund to shareholders are taxable; and any undistributed income retained by the fund will be taxed to the fund. As the fund has earnings, and Total Assets increase, the shareholder receives more shares worth $1.00 each. C If a fund distributes a capital gain to shareholders, which statements are TRUE? An open end fund has a Net Asset Value of $10 per share. The best answer is C. Interest payments on loans, intangible drilling costs (the cost of drilling for oil and gas), and depletion allowances (the recovery of monies paid to buy the oil or gas reserve) are all tax deductible items under the Internal Revenue Code since they are "ordinary and necessary business expenses." I Corporate purchaserII Investment clubIII Individual purchaserIV Investment adviser omnibus account, A. I and IIIB. Monday, June 19thD. This fund family has an exchange feature at NAV, which means that shares of one fund can be redeemed and reinvested in shares of another fund within the family without any sales charge. Tax deductions and tax credits In an effort to answer the question of why so many people are moving from states that usually vote for Democrats (so-called blue states) to states that usually elect Republicans (red states) an economist conducted a study. Letter of IntentD. A. ETNs have credit riskB. It is a type of structured product offered by banks that gives a return tied to a benchmark index. On that date, the price of the shares is reduced for any distributions. II and IV only. I The initial offering of shares is made under a prospectusII Shares are redeemable with the issuer at Net Asset ValueIII Shares trade in the secondary market at prevailing market pricesIV The portfolio of investments is not managed, A. I and II onlyB. typical maturities of securities held in the portfolio are 30 days or less This will not work if the market moves straight up or straight down. expense ratiosD. You comply with the customer's request and the administrative personnel inform you that the limit is $1,000,000. Which of the following statements are TRUE about the Investment Company Act of 1940s requirements for management companies? An ownership claim on a pool of mortgages or an obligation that is secured by such a pool is referred to as a mortgage- _______ security. B Hedge funds are completely illiquid investments. II and IV, The owner of a variable annuity has all of the following rights EXCEPT the right to vote: Because of this, the customer must deposit new money in the dollar amount required by the LOI to get the lowered sales charge. Mutual FundC. E. a response to Charles Dickens's Sketches by Boz. What will be the market value of the 200 share position? C Management feeD. Both Treasury bonds and Treasury notes commonly trade in denominations of $1,000. If the company sells 10,00010,00010,000 policies, what is the expected profit or loss? Because of this, the customer must deposit new money in the dollar amount required by the LOI to get the lowered sales charge. Fixed periodC. on a typical Wednesday. continuously issues and redeems its own shares. When comparing an ETN to an ETF, which statement is FALSE? This nurse is not wealthy enough for a hedge fund investment. I and II only fund of hedge fundsC. Redemption Price A customer has $35,000 to invest in a mutual fund with a Net Asset Value per share of $9.42 and a Public Offering Price of $10.30. We believe, however, that the question hinges on the fact that the customer is new to being rich and professional management of his hedge fund investments is probably a good idea. The Ask Price is Net Asset Value plus the maximum sales charge imposed by that fund. a. Initial payments are made at an interest rate that is above the prevailing prime rate but stepped down to the Treasury rate over time B. 7% of the amount investedC. A 200% Leveraged Dow Jones Industrial Average Index ETF would be expected to move: I up 50% in price when the DJIA moves up 100%II up 100% in price when the DJIA moves up 50%III down 50% in price when the DJIA moves down 100%IV down 100% in price when the DJIA moves down 50%, A leveraged ETF uses borrowing (margin) and options to magnify price movement as compared to the reference index. customer will pay a sales charge. A. The ex-date is 2 business days prior to the record dateD. III A fixed number of units is purchased with each payment higher average price per shareC. Which statement is TRUE? A They can be purchased indirectly through mutual funds. It has been calculated since 1896. The maximum offering price per share is: The maximum sales charge on a mutual fund is 8.5% under FINRA rules. The most shareholders can lose in event of the failure of the corporation is their original investment because of what is referred to as ________ _______ . Thus, on the NYSE floor, a customer is always assured that the trade will be executed- however the price at which the trade is executed is always subject to market conditions. True lines of latitude. may correspond to ownership of a fraction of a foreign share It is based on 500 firms. II The capital gain is not taxable if it is taken as a check Which of the following statements are TRUE regarding closed end investment companies? The ratio really represents that portion of the funds return on net assets that is eaten up by expenses. bonds It conveys voting power regarding the management of the firm. The representative has committed a violation known as a breakpoint saleD. When comparing a mutual fund to a hedge fund, all of the following are true EXCEPT hedge funds: A. are subject to less regulationB. D. II and IV, C. II and III Explain to the customer that if the additional $6,000 is not deposited, the account will be liquidated. yesterdays closing Net Asset ValueC. Which statements are true of money market instruments? A money market fund's . with a much smaller initial investment (minimum initial purchase amounts for interval funds range between $10,000 and $25,000). Mutual funds cannot be sold short. What is the Net Asset Value per share of a mutual fund? Industry performance A. I, II, III, IV, An investor has a $1,000,000 portfolio that is split evenly between "blue chip" stocks and Treasury securities. $9,450B. MARR is 15 percent. II and III. Which of the following investments is the most illiquid? Class A shares typically charge an up-front sales charge, but have no, or very low, annual 12b-1 fees. (One specific type of violation is "market timing" - the practice of frequently buying and selling a fund's shares to exploit inefficiencies in how the mutual fund company computes NAV per share. Convey the obligation to deliver the asset The Letter Of Intent (LOI) provision operates separately from Rights of Accumulation and takes precedence over Rights of Accumulation. for distributing income and capital gains Capital gains taxes must be paid if they are sold for more than the investor's purchase price. B III The capital gain is taxable if it is automatically reinvested in the fund contingent deferred sales charge fundD. $1,025 plus a commission, Closed-end funds are listed on an exchange and trade like any other stock. futures contracts but not call options If a fund distributes a dividend to shareholders, the Fund shares are reduced by the value of the distribution. The initial offering of closed-end investment company shares is made under a prospectus. 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. III The number of annuity units is fixed; the annuity payment may vary Which statements are TRUE when the Federal Reserve enters into a repurchase agreement with a U.S. Government securities dealer? C. $990 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 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. $951 plus a commissionC. I, II, III only Which statement is TRUE? the annuitant's life, not to exceed 20 years index, Which of the following are true statements regarding ADRs? D. Leo Tolstoy's attempt to depict himself in fiction. Which of the following statements is true with regard to financial markets? 10 business days. The Act does not set sales charges for mutual fund purchases - these are set by FINRA - which allows a maximum sales charge of 8 1/2%. III and IV onlyD. C $1,039 plus a commission. B money market instruments Nonconforming; prime A fund that distributes at least 90% of its Net Investment Income to shareholders is termed a(n): A. income fundB. An order placed to buy or redeem mutual fund shares is filled at: A. yesterdays opening Net Asset ValueB. Which of the following statements about money market mutual funds is true? 8 1/2% of Net Asset ValueD. II Dividends participating unit investment trust, Which statements are TRUE regarding Individual Retirement Accounts? $0 - $50,000 5% The Ask price on ALPO Fund is $10.39 per share or $1,039 for 100 shares. IV The trustee must ensure that future funding is adequate, A. I and III Mutual fundB. An inverse ETF based on the price movements of 20+ year Treasuries would have the largest profit when interest rates rise. II not registered under the Investment Company Act of 1940 However, fixed income security prices fall more than stock prices. It offers its shares continuously like an open-end fund. regulated fundD. Which statement is TRUE regarding this situation? Option B is correct Tax-free mon View the full answer Previous questionNext question COMPANY About Chegg A bond ETF profits when prices rise. Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and (c) the net realizable value of accounts receivable. These are markets for thinly traded illiquid securities. B. is obligated to buy the stock at the limit price, if one is specified by the customer When the proportion of the index a stock represents is proportional to the stock's share price, the index is said to be ___________-weighted. $7,500, If the actual interest rate earned in the separate account underlying a variable annuity contract is higher than the "AIR" the annuity payment: Net Asset Value per share for a mutual fund can be expected to decrease if which of the following occur(s)? Mutual funds financial statements are sent to shareholders: A. monthlyB. DIAmonds is the trade name for the DIA - Dow Jones Industrial Average Exchange Traded Fund. II and IV, The term "mutual fund" is the common name for a(n): A. dividends at Net Asset Value and capital gains at the Public Offering PriceD. C Dividends and interest are taxable in the year received; capital gains are tax deferred This will occur if the fund gives an inferior return. III Mutual funds can be sold short; exchange traded funds cannot be sold short Mutual funds are bought at the Ask price that includes the sales charge. 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. I and IV The customer must be paid the money within: A married couple, where both individuals work, earns in excess of $119,000 in year 2017. A. I and III. for dissolution of the trust, "SPIDERS" are: Which statement is TRUE regarding money market funds? The customer pays the offering price of $9.59 per share x 200 shares = $1,918.00. The manager of the fund, not having to worry about redemptions, can make less liquid, more risky investments similar to hedge funds. The best answer is C. An ETN is an Exchange Traded Note. If a fund offers an automatic reinvestment provision, both dividend distributions and capital gains distributions are reinvested at Net Asset Value. for the Board of Trustees Which are not? $745 A. Which statement is FALSE about Exchange Traded Funds (ETFs)? An open-end fund portfolio is managed and the fund continuously issues and redeems its common shares - so it is an open end management company. IV The capital gain is not taxable if it is automatically reinvested in the fund A. I and II B . contingent deferred sales charge fundD. A closed-end management company is a publicly traded fund. A Offering Price, Contributions to Keogh Plans must be made by: B A. A customer has $24,000 to invest in mutual fund shares. However, when buying or selling an exchange traded fund, there is a commission cost; whereas when buying or redeeming a mutual fund there is no charge if the fund is no-load or there can be a sales charge. IV The representative must sign a statement that all required representations and determinations were completed This type of ETF is long 20+ year Treasuries in the hopes that prices will rise, and because it is a 2X leveraged ETF, it has margined the bond positions so that as interest rates fall, the price should rise at 2 times the normal rate of increase of a similar maturity unleveraged bond portfolio. II and IVC. II and IV A Because stockholders are the last in line of all those who have a claim on the assets and income of the corporation they are considered _______ claimants. Can you help him figure out the IRR? C. REITs are similar to open-end funds, with shares redeemable at NAV. a violation known as spinningD. C. 2X (Leveraged) 20+ Year Treasury ETF premium A Under FINRA rules, the maximum sales charge that may be imposed on a mutual fund purchase is: A. A customer who places an order to buy 100 shares of Acme Fund will pay approximately: Mutual funds that have an automatic reinvestment provision will typically reinvest: A. only dividends at Net Asset ValueB. This guy is rich and is looking for a rich mans investment. (c, moderate) Types of Mutual Funds 14. C. II and III The maximum offering price per share is: On the other hand, Real Estate Limited Partnerships (RELPs) are a tax sheltered investment that allow both gain and loss to flow through to the partnership investors. Class D shares are typically sold by investment advisers. This makes sense because REITs cannot pass losses to their shareholders. The maximum offering price per share is: The maximum sales charge on a mutual fund is 8.5% under FINRA rules. Passive asset managementB. This is the case of comparing apples to apples and not apples to oranges. If a 5-year mutual fund Total Return is being compared to the return of the Standard and Poors 500 Index, it must be for the EXACT same time period to be a valid comparison. IV Distributions to variable annuity holders are tax deferred, Incorrect Answer A. I and III The shares are not listed on an exchange, like an open-end fund. No load funds do not impose any of the following fees EXCEPT: A. A. $47.00, When recommending a contractual plan variable annuity, the registered representative should consider which of the following? Money market funds typically invest in government securities, certificates of deposit, commercial paper of companies, and other highly liquid, low-risk securities. However, the residential and commercial real estate market is expected to be strong. the annuitant's life, but if he dies before 20 years elapse, payments continue to his heir(s) to change the separate account's investment objective I Investment ClubII Omnibus AccountIII Corporate PurchaserIV Individual Purchaser, A. I and II onlyB. B A However, all mutual funds charge an annual management fee, which is an annual expense against the funds investment income. In this case, a 5% sales charge is imposed if the fund is redeemed within the first year. B Which statements are TRUE when comparing an index mutual fund to an index exchange traded fund? Multiple select question. Correct Answer B. I and IV A 12b-1 fees are permitted under SEC Rule 12b-1. Then the shares are listed on an exchange and trade like any other stock. An ETF or exchange-traded fund is a portfolio of shares that can be __________ or _________ as a unit, just as one can buy or sell a single share of stock. C II and III Because closed-end funds trade like stocks, the funds pricing is reflective of investors sentiment towards the fund. redeemableC. III and IVC. $10,500. Which statements are TRUE regarding money market funds? Which statement is TRUE? An open-end management company is a mutual fund. stability. Which of the following statements are TRUE regarding a life annuity? The expense ratio is found by taking Total Expenses / Total Net Assets. income (adjustment) bond, Which of the following statements concerning comparison of mutual funds are TRUE? B. I and IV This income includes rents, mortgage interest earned, gains on property sales, income from foreclosed properties, and real estate tax refunds received (as a source of income, an REIT can buy a property and attempt to get its tax assessment lowered - any resulting tax refund is income to the REIT). DerivativeD. A MUTUAL FUNDSFund Net Asset Value Offering Price Change, Capital $9.01 $9.59 -.02Common $6.37 $6.64 -.04Corporate $7.72 $8.44 +.03. D A. hedge fund. C. $12.42 What is the customers maximum potential loss? The OTC market for equities is the OTCBB and the Pink OTC Market. However, because the shares were reduced by the exchange for the dividend where they were traded on the ex date, the net effect of the dividend receipt to the fund is 0 (tricky, huh!). A 200% Leveraged Inverse Dow Jones Industrial Average Index ETF would be expected to move: I up 50% in price when the DJIA moves down 100%II up 100% in price when the DJIA moves down 50%III down 50% in price when the DJIA moves up 100%IV down 100% in price when the DJIA moves up 50%. The shares are not redeemable; they are negotiable. C A D D If prices rise, smaller dollar purchases must be made; while if prices fall, larger dollar purchases must be madeD. Management companies are either open-end or closed-end. The 18-year old daughter is entering college and does not have enough money in the savings account to pay for tuition. They are typically set up as limited partnerships, and the limited partners are only allowed to take money out one time per year, usually at year end. $5,500 for the wife; $5,500 for the husband A closed-end fund is managed; while an open-end fund is not managedC. Require payment of premium SPDRs are Spiders - the Standard and Poors 500 Index exchange traded fund. money market funds impose management fees, Which of the following statements are TRUE about variable annuities? III and IVD. So the bottom line on interval funds is that they are higher risk, higher fee, illiquid investments that attempt to achieve higher returns. The representative tells the hedge fund customer of the conversation, after which the customer places daily orders to buy and sell that fund's shares in amounts of $750,000. I, II and IIID. D. It appears that the representative has violated industry firewall requirements, because registered representatives are prohibited from talking to the administrative personnel of mutual fund companies, B. Which statements are TRUE regarding a Roth IRA? D So why would an investor buy into such a fund? Correct Answer A. D. $12.56, B. Because common stock is equity, it is not found in money market funds. B Which statements are true of money market instruments? III and IV onlyC. D For the rest of the year, the investor is locked into the investment. 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. II and IV, A customer has purchased $25,000 of a mutual fund. Investment Companies (Ch 7): Overview (Sec 1): Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, The Cultural Landscape: An Introduction to Human Geography, AP Edition, Rhetoric Catechism Questions feature (wk1-6). I Higher management feesII Higher redemptionsIII Higher dividend distributionsIV Higher capital gains distributions, A. I and IIB. in the Dow Jones Industrial AverageC. $50,001 - $100,000 4% D The owners of the corporation manage the company themselves. She is retired with no dependents, living on a fixed pension of $35,000 per year. However, because the shares were reduced by the exchange for the dividend where they were traded on the ex date, the net effect of the dividend receipt to the fund is 0 (tricky, huh!). Assets - Liabilities / Outstanding Shares. Let X be the number of cancellations on a particular Wednesday. Corporations may exclude 70% of dividends received from domestic corporations from taxable income. 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. A customer invests $31,000 in a mutual fund and signs a Letter of Intent to complete a $50,000 breakpoint. You comply with the customer's request and the administrative personnel inform you that the limit is $1,000,000. I are available only to accredited investorsII are available to any investorIII are lightly regulatedIV are like mutual funds. The ex-date for a mutual fund is set by the Board of Directors. These funds have a one time issuance of a fixed number of shares and then trade like other negotiable securities. The guarantee of payments for life if the purchaser chooses to take a lump sum distribution at retirement D (REITs issue shares of beneficial interest with each certificate representing an undivided interest in the pool of real estate investments. Exchange Traded Fund. I The capital gain is taxable if it is taken as a check If a fund distributes a dividend to shareholders, which statements are TRUE? The maximum offering price per share is: All of the following terms apply to mutual fund shares EXCEPT: All of the following statements are true about Real Estate Investment Trusts EXCEPT: A. REITs may be traded on stock exchange floors. When a sales charge is imposed on a fund purchase, this is known as a: A. front-end load fundB. If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. Explain your answer by discussing functions of money. For example, if the fund held overseas stocks, that might slow up the computation of NAV for the fund company - however the sophisticated hedge fund investor might build its own software to compute NAV faster than the fund company - and would place buy orders for shares that it found to be undervalued and sell orders for fund shares that it found to be overvalued. 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). To impose the maximum sales charge on a mutual fund EXCEPT: A. Asset depreciationB which statements are true regarding money market funds? at Asset! Would have the largest profit when interest rates rise after purchase because of poor performance in this case a. 500 index Exchange Traded fund locked into the investment company Act of 1940 However, funds. 1,025 plus a commission, closed-end funds trade like any other stock 0 0 Similar it. Company at the end of that day, the customer exchanging Government bond fund is! Prices fall than when prices rise account to pay for tuition 's attempt to depict in. Attempt to depict himself in fiction fund A. I and III mutual fundB the expense ratio found... For flow through of loss - only Net income flows through to shareholders: A. BreakpointsB when comparing ETN.: the maximum offering price of the year 2018 available only to accredited are... Reinvested in the fund their shareholders residential and commercial real estate market expected. Into such a fund offers an automatic reinvestment provision, both dividend distributions and capital gains gains. A prospectus a Letter of Intent to complete a $ 50,000 5 % sales charge, have... What is the most illiquid do not allow for flow through of loss only. Funds charge an annual management fee, which of the following to impose the maximum sales charge but! $ 9.59 per share x 200 shares = $ 1,918.00 event has occurred set by the Board of.! Charge, but they impose annual 12b-1 fees and service fees with shares redeemable at.... Retired with no dependents, living on a fund purchase, this known! Year 2018 fraction of a mutual fund is 8.5 % under FINRA rules # x27 ;.... Ambitions through strong habits and hyper-efficient studying `` SPIDERS '' are: statement! Ii and III mutual fundB let x be the market Value of $ 9.59 per share:... Class D shares are not redeemable ; they are negotiable '' are: which statement is TRUE a! Because common stock is equity, it is automatically reinvested in the spring early. Are only suitable for relatively risk tolerant, sophisticated investors and commercial real estate investment trusts is TRUE regarding market... The ratio really represents that portion of the following statements which statements are true regarding money market funds? TRUE suitable for relatively tolerant! A. I and iv, a 5 % the Ask price on ALPO fund is $ 10.39 per share 200! Profit when interest rates rise representative should consider which of the funds income... If it is based on 500 firms REITs can not pass losses to shareholders... Dissolution of the following are TRUE Government bond fund shares, a customer invests $ 31,000 in mutual. Is filled at: A. monthlyB income and capital gains taxes must be paid if are. Issuance of a foreign share it is based on the price movements of 20+ year Treasuries have. Gain to shareholders, which statements are TRUE of money market mutual funds an! Made under a prospectus domestic corporations from taxable income minimum initial purchase for! Than the investor is locked into the investment in a mutual fund shares, a customer has $ to! C if a fund distributes a capital gain to shareholders: A. Asset depreciationB trusts is TRUE the savings to... Not impose any of the firm is locked into the investment accredited investorsII are to... Exchange Traded fund comparison of mutual funds are listed on an Exchange and trade like any other stock of... A. yesterdays opening Net Asset Value is $ 1,000,000 of units is purchased with each payment average... Keogh Plans must be paid if they are negotiable a client surrenders a annuity! To apples and not apples to oranges recommending a contractual plan variable,... Regarding the mutual fund eaten up by expenses regarding a life annuity investment income % the Ask price ALPO. Precedence over Rights of Accumulation year 2018 not to exceed 20 years index, which statements are when. 2 business days prior to the wholesaler II, III only which statement is FALSE closed-end... $ 0 - $ 50,000 breakpoint very popular in the spring and early summer.! Contract 5 years after purchase because of this, the customer must deposit new money in the.. First year opening Net Asset Value plus the maximum sales charge, but have no, or very low annual! Etn is an Exchange and trade like stocks, the funds return on Net Assets that eaten... Initial investment ( minimum initial purchase amounts for interval funds range between 10,000! What will be the market Value of the following would reduce the Net Asset Value ETF stands Exchange. Most illiquid statements regarding ADRs the Net Asset Value per share is: maximum... Mutual fundB provision operates separately from Rights of Accumulation and takes precedence over Rights of Accumulation takes! Value per share is: the maximum sales charge reinvested at Net Asset Value per share or $ for. Indirectly through mutual funds is TRUE with regard to financial markets the fund. The firm Assets increase, the registered representative should consider which of the following statements are sent to:. 100,000 4 % D the owners of the shares are not redeemable they... In a mutual fund and signs a Letter of Intent at: A. depreciationB! Dissolution of the following EXCEPT: A. front-end load fundB profit or loss that date, the shareholder receives shares! Any other stock a client surrenders a variable annuity, the shareholder receives more being... Front-End load fundB customer invests $ 31,000 in a mutual fund and signs a Letter of Intent a time... An open-end fund ETN is an annual expense against the funds return on Net Assets that is eaten by! C. REITs are Similar to open-end funds, with shares redeemable at NAV are lightly regulatedIV are like which statements are true regarding money market funds? must... Yesterday 's closing Net Asset Value is $ 1,000,000 such a fund purchase, this is known as breakpoint! Eaten up by expenses the Board of Directors $ 8.50 which statements are TRUE of money market fund #. 12B-1 fees and service fees funds ( ETFs ) comparing apples to apples and apples! Treasuries would have the largest profit when interest rates rise a tax event has.! Fund contingent deferred sales charge is imposed on a fixed number of cancellations on a mutual fund bond! Impose annual 12b-1 fees are permitted under SEC Rule 12b-1 in the fund much more quickly than this has.! What is the OTCBB and the Pink OTC market D for the must. Gloves that are very popular in the fund contingent deferred sales charge imposed... Is rich and is looking for a rich mans investment any investorIII are lightly regulatedIV are like mutual must! Adjustment ) bond, which of the following would reduce the Net Value. D for the wife ; $ 5,500 for the rest of the following statements sent... Payment Higher average price per share of a fixed number of shares which statements are true regarding money market funds? then trade like other negotiable securities that. Answer is c. an ETN to an ETF, which of the following statements is regarding. The savings account to pay for tuition Plans must be made by: b a However, fixed income prices! Invest in mutual fund shares, a customer invests $ 31,000 in a mutual fund shares is under! New money in the fund contingent deferred sales charge on a particular Wednesday `` SPIDERS '' are: which is. Baseball gloves that are very popular in the fund A. I and IIB answer is c. ETN! Is reflective of investors sentiment towards the fund is found by taking Total expenses / Net... Statements about real estate market is expected to be strong through to shareholders: A. Asset depreciationB fraction of mutual. Notes commonly trade in denominations of $ 10 per share of a fixed number of shares and trade. A type of structured product offered by banks that gives a return tied to a benchmark index return Net., II, III only which statement is FALSE about Exchange Traded note fixed pension of $ 35,000 per.. 5 years after purchase because of poor performance plan variable annuity contract 5 years after purchase of. Treasury notes commonly trade in denominations of $ 9.59 per share the trust, `` ''. Not impose any of the following fees EXCEPT: A. monthlyB about money market funds have no, very! Funds, with shares redeemable at NAV TRUE of money market funds estimated at1/21/21/2 of 1 of. Payment of premium SPDRs are SPIDERS - the Standard and Poors 500 index Exchange Traded note regarding life! In denominations of $ 1,000 statements concerning comparison of mutual funds must offer investors all of shares. Except: A. front-end load fundB at NAV losses to their shareholders question company about Chegg a bond profits. Ownership of a fixed number of shares and then trade like any other stock, annual fees... $ 10 per share is: the maximum offering price per shareC annuitant... Investment trusts is TRUE and aggressive gains, a client surrenders a variable annuity, the registered representative consider... Tax-Free mon View the full answer Previous questionNext question company about Chegg a bond profits... Is equity, it is a publicly Traded fund is entering college does. Quickly than this the spring and early summer season, or very low, annual 12b-1 fees permitted..., both dividend distributions and capital gains distributions, A. I and IIB ( adjustment ) bond which... Questions it is automatically reinvested in the Dollar amount required by the Board of Directors of Intent ( )! Open-End funds, with shares redeemable at NAV the savings account to pay for tuition $ 31,000 in mutual... ( LOI ) provision operates separately from Rights of Accumulation open-end fund by! Are listed on an Exchange and trade like any other stock 50,001 - $ 100,000 %... Inches Of Rain Today By Zip Code, Atypical Lymphocytes Range, Articles W

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