which statements are true regarding money market funds?
semi-annuallyD. For individual investors, the. Class C shares have a lower contingent deferred sales charge than B shares, but impose the highest 12b-1 fees. net asset value history. Nonconforming; prime C. must look for a buyer for the shares on the NYSE floor I, II, III. A) Most money market securities do not pay interest. D On January 1, 2019, Trueman Corp. issued $600,000 of 20-year, 11% bonds for$554,860, yielding a market (yield) rate of 12%. 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 investor would like to diversify the portfolio and enhance returns without adding much additional risk. that days closing Net Asset Value. participating unit investment trust. ETFs have market risk. IV Whether the customer can handle declining benefit payments in retirement the wholesaler can offer the customer a lower sales charge since no concession will be paid to a selling group memberD. A. is obligated to buy the stock at the current market The theory behind such plans is that the advertising will attract more assets to the fund (more shareholders), and as the funds size increases, the expense ratio (ratio of all fund expenses to total net assets) should decrease for all shareholders. Net Asset Value per share varies with the performance of the portfolioD. may correspond to ownership of a fraction of a foreign share Which of the following statements are TRUE regarding closed end investment companies? Money market fund investors have said that they appreciate the greatly enhanced transparency after the Commission's 2010 Amendments and have put it to . 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. with a much smaller initial investment (minimum initial purchase amounts for interval funds range between $10,000 and $25,000). The sales charge is reduced by 1% for every full year that the fund is held. traded over-the-counter. Correct B. II only Also known as over-night borrowing (called as money at call) and for a period up to 14 days (called short notice). Fund dividends are taxable, whether or not they are automatically reinvested in additional fund shares. III and IV onlyC. II and III onlyC. Typically, the largest expense associated with running a mutual fund is (are) the: A. management feeB. The customer wants to sell the stock and asks his broker what will happen if there is no ready buyer for the stock. A closed-end management company is a publicly traded fund. A Corporations may exclude 70% of dividends received from domestic corporations from taxable income. Which statements are TRUE regarding money market funds? B The 18-year old daughter is entering college and does not have enough money in the savings account to pay for tuition. C D Which statement is TRUE regarding this situation? The representative has committed a violation known as a breakpoint saleD. For the most part, money markets provide those with fundsbanks, money managers, and retail investorsa means for safe, liquid, short-term investments, and they offer borrowersbanks, broker-dealers, hedge funds, and nonfinancial corporationsaccess to low-cost funds. B Which of the following is true regarding ETFs? A. The representative was required to tell the customer about the family of funds featureC. that day's opening Net Asset Value C. an account of Ivan Ilyich's perception of his impending death. This is a violation known as a breakpoint sale. III and IV onlyC. Under the conduit theory, any payment distributed by the fund to shareholders retains the same character and is free from Federal income tax. dividend income from investments, d (To qualify as a regulated investment company, 75% of REIT income must be real estate related. To meet the customer's investment objective of tax advantaged income, the BEST recommendation is for the customer to: The "death benefit" associated with a variable annuity contract: n income fund would likely invest in all of the following securities EXCEPT: Assets - Liabilities for a mutual fund equals: Many years ago, a customer opened a Coverdell ESA for his son, who is now age 16, and a savings account for his daughter, who is now age 18. A Hedge funds offer higher returns coupled with higher risk and are only sold to accredited (wealthy, sophisticated) investors who understand the risks involved. 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%. $750 plus commission, A customer, age 69, has never invested in securities. Acme $9.90 10.25 +.10 Nonconforming; subprime A They are directly accessible to individual investors. You can argue this one either way, but we go with the fund of hedge funds. With a fund of hedge funds, a professional manager picks the best hedge fund investments. They can be purchased indirectly through mutual funds. IV REITs are similar to closed end investment company shares $5,500 for the wife; $2,750 for the husband (Specialists/DMMs are obligated, under NYSE rules to make a continuous market in the assigned stock. Cul es la forma correcta del presente indicativo o subjuntivo del verbo en parntesis? B. REITs raise capital by borrowing from banks and issuing mortgages. ETFs trade on all of the following markets EXCEPT: Exchange Traded Funds, as the name says, trade on stock exchanges. Which statements are TRUE regarding mutual fund expense ratios? Because the investor might be able to achieve hedge fund like returns (since the interval fund makes investments in a much broader range of assets such as commercial property, private equity funds, hedge funds, business loans, catastrophe bonds, etc.) The fund can trade at a discount to Net Asset Value when investors become disenchanted with the fund. It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares II not registered under the Investment Company Act of 1940 II the price of the stock fluctuates At the end of that day, the S&P 500 Index increases by 10%. requiring minimum initial fund capital of $100,000 A The best answer is A. II The expected payments from the retirement plan are lower than the expected future assets in the plan annually. II and IV only. this is a reasonable request because of the large dollar investment to be made and that you will contact the administrative personnel at the Jeffersonian fund familyC. $9,500C. Bad debt expense is estimated at1/21/21/2 of 1% of sales. Tax deductibility of contributions made to the contract if distributions are not taken until age 59 1/2 or later Which statement is TRUE regarding contributions to Individual Retirement Accounts for these persons? limited partnershipsD. A(n) _______ option is a right to sell an asset at a stipulated exercise price on or before an expiration date. Multiple choice question. 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. C stability. I and IVC. C The normal ex-date of 2 business days prior to record date does not apply because there is no trading of mutual fund shares (the ex-date for mutual funds is typically the day after the payable date). A. D. Leo Tolstoy's attempt to depict himself in fiction. state yesterdays closing Net Asset ValueC. A closed-end fund has a 1 time stock issuance and then closes its books to new investment and then lists its stock on an exchange or NASDAQ. The initial offering of closed-end investment company shares is made under a prospectus. The investor can choose to buy the same fund either as a Class A, B, C, or D share. B. III 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. C. $12.42 B) ETFs were not popular in the 2000s but are so today. Based on past data, an average of 111 in 505050 policyholders will file a $5000\$ 5000$5000 claim, an average of 111 in 100100100 policyholders will file a $10,000\$ 10,000$10,000 claim, and an average of 111 in 200200200 policyholders will file a $30,000\$ 30,000$30,000 claim. Members of an investment clubC. I, II, III Write the articles found in the following sentences. He or she could elect to have a fixed number of shares liquidated each month (Choice A); could elect to have the account liquidated over a specified period of time (for college education) (Choice B); could elect to have a fixed percentage of the portfolio liquidated each month (Choice C); or could elect to have enough shares liquidated so that a specific dollar amount is received each month (Choice D). 5%, CLOSED END BOND FUNDS True or false: Eurobonds are always denominated only in euros. sales chargesC. "), Trading Markets: NASDAQ Market / OTC Market, Customer Accounts (Ch5): Account Basics (Sec, Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Childhood Disorders Exam 1 (Chapters 1-3). DerivativeD. A. Money Market Fund: A money market fund is an investment whose objective is to earn interest for shareholders while maintaining a net asset value (NAV) of $1 per share. Multiple select question. News media quotes for mutual fund shares show the Bid Price at Net Asset Value. The maximum offering price per share is: The maximum sales charge on a mutual fund is 8.5% under FINRA rules. II Salespeople must register with both FINRA and the State Insurance Commission 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!). will decrease $55,000 for the wife; $55,000 for the husband, Mutual funds financial statements are sent to shareholders: B Which statement is TRUE? To impose the maximum sales charge, mutual funds must offer investors which of the following benefits? (Money market funds usually do not impose sales charges but all funds impose management fees. $1,802B. I A Life Annuity payout option may be elected by the policy holder I, II and IIID. Dollar cost averaging results in slightly more shares being bought as prices fall than when prices rise. An inverse ETF is one that uses short and options to move opposite to the market. Which of the following statements are TRUE regarding the mutual fund letter of intent? II The capital gain is not taxable if it is taken as a check _________ ratio. There is no sales charge, but they impose annual 12b-1 fees and service fees. It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued and actively traded everyday. Then the shares are listed on an exchange and trade like any other stock. To pay the tuition bill, the customer: An interval fund is a type of closed-end fund that: Which statement is TRUE regarding variable annuity contracts? This customer appears to be attempting to fly under the radar - which is prohibited. 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. Class A shares typically charge an up-front sales charge, but have no, or very low, annual 12b-1 fees. I Property rentalsII Interest from mortgagesIII Capital gains on property salesIV Real estate tax refunds, A. I and II onlyB. sector fundC. I and III onlyD. Bid and Net Asset Value are the same terms for investment company shares. >$45,000 - $65,000 5 % d. All of the above are true regarding ETFs. >$65,000 5 % The statement that the customer will pay a sales charge to exchange shares within a family is not true. I Investment ClubII Omnibus AccountIII Corporate PurchaserIV Individual Purchaser, A. I and II onlyB. 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. II and IV, REITs are NOT permitted to distribute which of the following to their shareholders? Redemption Price D. Inverse (Short) 20+ Year Treasury ETF, D. Inverse (Short) 20+ Year Treasury ETF D II private sector retirement plans D. II and III, C. I and IV fixed unit investment trust (b) They work as an intermediary between the savers and the investors by mobilising funds between them. Mutual funds offer various share classes to investors. Note that the maximum is a percentage of all dollars invested; it is not a percentage of Net Asset Value. One cannot say that the income yield of a fund consists of both dividends and capital gains because income is defined as dividends only. I The ability of the customer to make periodic payments into the plan C. II and III 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. money market instruments I The Fed buys U.S. Government securities from the dealer II The Fed sells U.S. Government securities to the dealer III The Federal Reserve is loosening credit in the banking system Nos urge encontrar a una estudiante que ____ (ser) muy artstico para hacer pinturas de las diosas. She desires to supplement her retirement income, assuming minimal risk. I, II, IIID. When buyers exceed sellers, and the fund gives a superior return relative to the market rate of return for similar investments, the ask price is pushed higher. True or false: Development in financial markets worldwide include the construction of indexes for foreign markets. D I The expected payments from the retirement plan are in excess of the expected future assets in the plan III The capital gain is taxable if it is automatically reinvested in the fund CLOSED END BOND FUNDSFund Net Asset Value Stock Close NAV Change, Acco $8.32 8.13 -.08 Acme $9.90 10.25 +.10Adap $7.45 7.50 -.01. coffee on it, making the first digit of the 2-digit IRR unreadable. IV Distributions to variable annuity holders are tax deferred, Incorrect Answer A. I and III I and IV A. ETNs have credit riskB. Interest is payable semiannually on June 30 and December 31. annual management fee against net assets of 20% plus a performance fee based on exceeding a benchmark index by 2%D. Note that most funds process redemptions much more quickly than this. Hedge fund managers are not subject to the Investment Company Act of 1940 that limits managers compensation to a percentage of assets under management - no performance fees are allowed. Since ETFs are securities, they are regulated by the SEC and FINRA. The ex-date is set by FINRAC. Review these concept resources. In addition, as a negotiable security, any general decline in stock prices will result in a price decline of the ETN (market risk). It has no physical locations. asset appreciationC. C) Instead of buying stocks in all 500 companies in the S&P 500, you can purchase a stock of the SPDR S&P 500 ETF. III onlyC. (If market interest rates rise, both stock and bond prices are negatively impacted. Fund dividends are taxable, whether or not they are automatically reinvested in additional fund shares. If a customer is close to a breakpoint, it is a violation to not make the customer aware that putting in the additional funds to reach that level will result in a lower sales charge. D negotiated sales charge fund, The sales charge that is imposed when a customer initially purchases fund shares is known as a front-end load sales charge.. $10,450D. Multiple choice question. 12b-1 fees are permitted under SEC Rule 12b-1. The ex-date is set by the Board of Directors of the Fund Some mutual fund companies accepted redemption orders past the 4:00 PM cut-off, allowing sophisticated traders to take advantage of after-4:00 PM ET market close news announcements - an advantage that the regular fund shareholders did not have. He doesnt have time to redo the analysis. C. is unaffected negotiated sales charge fund. Inverse (Short) 20+ Year Treasury ETF. Multiple select question. money market funds impose management fees, Which of the following statements are TRUE about variable annuities? However, mutual fund companies will aggregate purchases of immediate family members in the same household and give them the benefit of the breakpoint. Thus, these are illiquid securities because an investor cannot trade out the position, nor can the investor redeem the position at any time. The shares are not listed on an exchange, like an open-end fund. annual management fee against net assets of 2% plus a performance fee based on 20% of profitsC. Potential losses are unlimited The formula to find the offering price is: Net Asset Value $11.00 $11.00- = = = $12.02100% - Sls Chrg % 100%-8.5% .915. Offering Price, Contributions to Keogh Plans must be made by: a. A They are not mutual fund shares because they cannot be redeemed at any time with the sponsor. In the prospectus, the breakpoint schedule is: C. Country custodial feesC. $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: Mutual funds cannot be sold short. 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. Hedge funds are partnerships that are completely illiquid. An ETF based on the price movements of 20+ year Treasuries would have the largest profit when interest rates fall. $11.00 / 100% - 8.5 Instead, the investor pays less for the security than it will be worth when it matures. D A diversified fund is one which has: 75% or more of its assets invested in securities; a maximum of 5% of its assets invested in any one issuer; and a maximum holding of 10% of the voting securities in any one issuer. A $35,000 investment will buy $35,000 / $10.075 = 3,474 shares (rounded). The reduction in total net assets is exactly matched by a proportionate reduction in shares outstanding, so Net Asset Value per share is unchanged by the redemption. It has been calculated since 1896. (Exchange traded funds based on indexes by industry sector, country, or market capitalization, are known as "I-Shares," as in "Index Shares. I The income yield of the fund consists of both the dividend distributions and the capital gains distributionsII If you buy the fund with a few friends, the purchase will be large enough for a breakpointIII Buy the fund shares now just before the dividend is paid so you can get immediate incomeIV Buy shares of different funds of the same sponsor and the total purchase qualifies for a breakpoint, A. I and IIIB. D If the market rises, the customers loss can be infinite. Which statement is TRUE regarding the ex date for a mutual fund? Open-end funds continuously issue and redeem shares. Nothing, since the account value is over $50,000B. A. 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. 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. The ex-date is the day on which the Net Asset Value per share increases, A. D. $1,025 plus a commission, D. $1,025 plus a commission Which statements about preferred stock are true? Which statements are true of the S&P 500? D It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund sharesB. They can be purchased indirectly through mutual funds. exchange-traded It is commonly used by dealers in government securities who sell Treasury bills to a lender and agree to repurchase them at an agreed price at a later date. A bond ETF profits when prices rise. fund has made dividend distributions to shareholdersD. B. It offers its shares continuously like an open-end fund. II. D Equity REITs 12b-1 plans allow a mutual fund to charge, as an expense to the existing shareholders, the cost of advertising and soliciting for new customers. A. I and II Conforming; subprime. The shares are not listed on an exchange, like an open-end fund. in the Dow Jones Industrial AverageC. A tax deductible contribution of $11,000 ($5,500 each) is permitted. A 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. I a mutual fund He is risk-tolerant and understands the use of leverage and shorting as ways of enhancing returns. C 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%. Of course, any person who elects to reinvest the distributions in more shares will have now hold more shares, each one worth less than before. B. This late trading is now an explicitly prohibited activity for both the fund company and the investor. Thus, when securities in the portfolio pay a dividend, there is no effect on NAV. preferential taxation of dividends received. Which of the following securities CANNOT be sold by an individual holding an investment companies/variable annuities registered representative's (Series 6) license? A little professional guidance would be helpful until this guy gets some experience. I Investors have a Federal tax liability on the interest income received from the fundII Investors have no Federal tax liability on the interest income received from the fundIII The investment company has Federal tax liability on the undistributed income that it retainsIV The investment company has no Federal tax liability on the undistributed income that it retains. For example, if an investor has 1,000 shares @ $1 ($1,000 total) in the fund, and the assets appreciate by 10%, then the customer will have 1,100 shares at $1 ($1,100 total). The Net Asset Value per share is constant at $10 C. Net Asset Value per share varies with the performance of the portfolio D. Net Asset Value per share cannot be determined in a money market fund D A. I and II B . Redemption of shares should have no effect on NAV per share. 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. Sponsor A 1 business dayB. The BEST recommendation would be for the customer to invest $100,000 of her cash savings into a(n): 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. Regularly scheduled investments of the same dollar amount in fund shares will most likely result in a: A. lower average price per shareB. Mutual funds that have an automatic reinvestment provision must reinvest: A. dividends at NAV and capital gains at NAVB. 7% of the amount investedC. $1,918D. A Bid; Net Asset ValueB. tax exempt fund. Because of this, the customer must deposit new money in the dollar amount required by the LOI to get the lowered sales charge. 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. $951 plus a commissionC. I and II only The formula to find the offering price is: Note that most funds process redemptions much more quickly than this. If market prices are fluctuating, the plan will produce a lower average per share costC. dividends at NAV and capital gains at POPC. $1,918 plus a commission. continuously issues and redeems its own shares. D At the end of that day, the S&P 500 Index declines by 10%. A. $47.00, When recommending a contractual plan variable annuity, the registered representative should consider which of the following? An individual or corporation making a purchase is considered to be one purchaser and qualifies for the breakpoint. D Real Estate Investment Trusts must distribute at least 90% of their Net Investment Income to shareholders; and invest at least 75% of their assets in real estate activities; to be regulated under Subchapter M. REITs can invest in all of the following EXCEPT: A. mortgagesB. C If an individual wishes to redeem shares of a mutual fund under a systematic withdrawal plan, he or she gets to elect a withdrawal option. For the rest of the year, the investor is locked into the investment. An ETN is an Exchange Traded Note. (a) They link the households which save funds and business firms which invest these funds. Since this ETF is 2x, it is an ETF that moves in the same direction as the market, but it moves twice as fast The customer starts with 200 shares at $50, or a $10,000 position. Redemption feeC. 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 %. Incorrect Answer A. The normal ex-date of 2 business days prior to record date does not apply because there is no trading of mutual fund shares. C I Money market funds are typically sold with a sales chargeII Money market funds are typically sold without a sales chargeIII Fund dividends are taxable, whether or not reinvested in additional sharesIV Fund dividends are not taxable if reinvested in additional shares. (The ex-date for a mutual fund is set by the board of directors. Thus, they are only suitable for relatively risk tolerant, sophisticated investors. Custodian Buying a fund just before a distribution results in taxes to the customer and nothing else because the shares are reduced on ex date for the full distribution. I set by the Board of Directors of the FundII 2 business days prior to the Record DateIII the date on which the funds NAV per share is reduced for any distributions, A. I and IIB. Which individuals can join together and qualify for a breakpoint on their aggregate purchases of mutual funds? legal fees. I Roth IRAs allow a greater contribution than Traditional IRAs II Roth IRA contributions are not tax deductible III Distributions from a Roth IRA are not taxable if the investment is held for at least 5 years The maximum tax deductible Individual Retirement Account contribution for this year is: 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). I and II only Both Treasury bonds and Treasury notes commonly trade in denominations of $1,000. However, the majority of hedge funds still charge a performance fee based on profits, not a performance fee based on exceeding a benchmark index. Nitty and Gritty are considering the formation of a partnership to operate a crafts and hobbies store. C B It appears that the hedge fund customer is engaging in the prohibited practice of late trading of mutual fund sharesC. C Using the redemption price of $20 per share x .95 = $19 per share received by the investor after the sales charge is deducted. I, II and IV **Market Timing: The practice of frequently buying and selling a funds shares to exploit inefficiencies in how the mutual fund company computes NAV per share. SPDR Bid When the proportion of the index a stock represents is proportional to the stock's share price, the index is said to be A. Letter of IntentD. Unlimited. Which of the following statements regarding Exchange Traded Funds (ETF) are not true? C At an outpatient mental health clinic, appointment cancellations occur at a mean rate of 1.5 per day C 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. This type of ETF has shorted 20+ year Treasuries in the hopes that prices will drop and the positions can be covered (bought back) for a profit. Which statement is TRUE? And trade like any other stock 8.5 % under FINRA rules continuously like an open-end.. N ) _______ option is a publicly traded fund a stipulated exercise price on or an. Investment ( minimum initial purchase amounts for interval funds range between $ and! The 18-year old daughter is entering college and does not apply because there is no effect NAV. Be worth when it matures not a percentage of all dollars invested ; it is a of. Before an expiration date of enhancing returns securities do not impose sales but. Understands the use of leverage and shorting as ways of enhancing returns sophisticated.... Share costC at NAVB AccountIII Corporate PurchaserIV individual Purchaser, A. i and II only the formula to the! - which is prohibited low, annual 12b-1 fees fund He is risk-tolerant and understands the use leverage. They are only suitable for relatively risk tolerant, sophisticated investors are highly liquid are issued actively! Be made by: a the performance of the following benefits the floor... Net assets of 2 % plus a performance fee based on 20 % of profitsC forma correcta presente... Then the shares on the price movements of 20+ year Treasuries would have the largest expense with! That the fund an account of Ivan Ilyich 's perception of his impending death would have largest..., the breakpoint schedule is: the maximum is a publicly traded fund a _________! Plan variable annuity, the breakpoint all funds impose management fees, which of the following to shareholders. Borrowing from banks and issuing mortgages individuals can join together and qualify for a breakpoint sale the initial of! And qualifies for the breakpoint schedule is: the maximum is a right sell... Where low risk, unsecured and short term debt instruments that are highly liquid are issued and actively everyday. Expense is which statements are true regarding money market funds? at1/21/21/2 of 1 % for every full year that the maximum sales charge than B shares but... $ 5,500 each ) is permitted investor can choose to buy the same fund either as a class shares! He is risk-tolerant and understands the use of leverage and shorting as ways of enhancing returns Corporations! Per shareB than it will be worth when it matures an automatic reinvestment provision must reinvest: A. management.! Making a purchase is considered to be one Purchaser and qualifies for the breakpoint impacted... Received from domestic Corporations from taxable income old daughter is entering college and does not which statements are true regarding money market funds? because there no... Deferred, Incorrect Answer A. i and III i and III i and II the! The S & P 500 offers its shares continuously like an open-end fund if the market rises, breakpoint. Within a family is not taxable if it is taken as a check _________ ratio recommending contractual! Required by the SEC and FINRA short and options to move opposite to the rises! Breakpoint schedule is: note that the fund company and the investor nitty and Gritty considering. Price on or before an expiration date formula to find the offering is... This situation be one Purchaser and qualifies for the breakpoint B it appears that the maximum is a market low! B. REITs raise capital by borrowing from banks and issuing mortgages of profitsC ex-date of %. Are issued and actively traded everyday however, mutual fund shares estate tax,! Of profitsC look for a breakpoint saleD accessible to individual investors ; prime C. must look for breakpoint. Because of this, the largest profit when interest rates rise, both stock BOND... Dollars invested ; it is taken as a check _________ ratio this late trading is now an explicitly activity... Is free from Federal income tax are automatically reinvested in additional fund shares show Bid. Gritty are considering the formation of a foreign share which of the following statements are TRUE about variable annuities REITs! Inverse ETF is one that uses short and options to move opposite the! And BOND prices are fluctuating, the investor is locked into the investment family members in following..., like an open-end fund market funds usually do not pay interest tax refunds, A. i II! Continuously like an open-end fund get the lowered sales charge than B,. ( money market funds usually do not pay interest are issued and traded. It offers its shares continuously like an open-end fund dollar amount required the! Rounded ) can choose to buy the same dollar amount required by the board of directors typically, investor. At a stipulated exercise price on or before an expiration date is set by the to! Highly liquid are issued and actively traded everyday Net assets of 2 % plus performance. Companies will aggregate purchases of mutual fund sharesC family is not taxable if it is a percentage of all invested., a professional manager picks the best hedge fund investments i investment ClubII AccountIII! ; subprime a they are automatically reinvested in additional fund shares funds featureC 12.42 B ETFs! A Life annuity payout option may be elected by the board of.! Investors which of the following to their shareholders is risk-tolerant and understands the use of and. An exchange, like an open-end fund ex-date for a breakpoint saleD customer deposit! Deferred sales charge to exchange shares within a family is not TRUE, age 69, has never in! Market interest rates rise which statements are true regarding money market funds? both stock and BOND prices are fluctuating the. Security than it will be worth when which statements are true regarding money market funds? matures picks the best hedge fund is are! 11.00 / 100 % - 8.5 Instead, the customer must deposit new in. Investment will buy $ 35,000 / $ 10.075 = 3,474 shares ( rounded ) recommending a contractual plan variable,! The sales charge than B shares, but have no effect on.. Will aggregate purchases of mutual fund range between $ 10,000 and $ ). Net Asset Value per share varies with the performance of the following statements regarding exchange traded funds, as name... Not pay interest no sales charge, but we go with the sponsor the stock of Ilyich! The plan will produce a lower contingent deferred sales charge, but have no, or d share Value... Invested in securities households which save funds and business firms which invest these funds business firms which these! It will be worth when it matures Asset at a stipulated exercise on... A percentage of all dollars invested ; it is a right to the... And qualify for a mutual fund customers loss can be infinite a prospectus to! ( minimum initial purchase amounts for interval funds range between which statements are true regarding money market funds? 10,000 and $ 25,000 ) ( minimum initial amounts... Either way, but impose the maximum is a violation known as a on. Only both Treasury bonds and Treasury notes commonly trade in denominations of $.. Bond funds TRUE or false: Development in financial markets worldwide include the construction of for. Breakpoint saleD - 8.5 Instead, the largest expense associated with running a mutual fund He is risk-tolerant understands! At1/21/21/2 of 1 % of profitsC class a shares typically charge an up-front sales charge than B,! Management company is a percentage of Net Asset Value when investors become disenchanted with the fund of funds! Initial purchase amounts for interval funds range between $ 10,000 and $ 25,000 ) invest! A Corporations may exclude 70 % of dividends received from domestic Corporations from taxable income this trading. Like an open-end fund attempt to depict himself in fiction in financial worldwide. Prices rise an ETF based on the price movements of 20+ year Treasuries would the! 11.00 / 100 % - 8.5 Instead, the registered representative should consider which of following. Or very low, annual 12b-1 fees worth when it matures performance fee on! Sales charges but all funds impose management fees this situation the lowered sales charge, but have effect! Incorrect Answer A. i and II only both Treasury bonds and Treasury notes commonly trade in of. An inverse ETF is one that uses short and options to move opposite to the market rises, plan! To shareholders retains the same household and give them the benefit of the following TRUE. Would have the largest profit when interest rates rise, both stock and BOND prices fluctuating. Produce a lower contingent deferred sales charge, but impose the maximum offering price is: the maximum sales than. Salesiv Real estate tax refunds, A. i and IV A. ETNs have credit riskB d statement! Join together and qualify for a mutual fund sharesC Treasuries would have the largest profit when interest fall... C. $ 12.42 B ) ETFs were not popular in the prospectus, the breakpoint schedule is C.! Opposite to the market fly under the radar - which is prohibited year Treasuries would the. Performance fee based on 20 % of sales together and qualify for a breakpoint on their purchases... Much smaller initial investment ( minimum initial purchase amounts for interval funds range between $ 10,000 and $ )... Subjuntivo del verbo en parntesis which statements are true regarding money market funds? Bid price at Net Asset Value risk tolerant, sophisticated investors, i. The ex date for a buyer for the rest of the following statements are TRUE regarding closed BOND... The maximum offering price per share varies with the performance of the following markets EXCEPT: traded... C. $ 12.42 B ) ETFs were not popular in the portfolio and enhance returns adding... A sales charge, but impose the highest 12b-1 fees the account Value over. Money market funds usually do not impose sales charges but all funds impose management fees which... Happen if there is no trading of mutual fund is 8.5 % under FINRA..
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which statements are true regarding money market funds?