So, only the 1% of the income retained will be taxed. D I Mutual funds can be purchased on margin; exchange traded funds cannot be purchased on marginII Mutual funds cannot be purchased on margin; exchange traded funds can be purchased on marginIII Mutual funds can be sold short; exchange traded funds cannot be sold shortIV Mutual funds cannot be sold short; exchange traded funds can be sold short, A. I and III onlyB. A The most important factor to consider when selecting a mutual fund is: A. investment objectiveB. A. Therefore, open-end and closed-end funds are capitalized differently. D. II and IV, Exchange Traded Funds (ETFs) are: An inverse ETF is most similar to taking what options position(s) on the reference index? $1,025C. ETFs are typically structured as open-end management companiesC. $55,000 for the wife; $55,000 for the husband, Mutual funds financial statements are sent to shareholders: requiring a majority vote of the outstanding shares to change a fund's investment objectiveC. Which of the following are mortgage-related government agencies, created because Congress believed that adequate credit was not being received through normal private sources. that day's closing Net Asset Value, Series 7: Retirement Plans (Education And Hea. The typical hedge fund fee is 2 and 20 - a 2% annual management fee as a percent of assets under management, plus 20% of profits. 8 1/2% of the amount investedD. B 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!). Redemption Price An individual or corporation making a purchase is considered to be one purchaser and qualifies for the breakpoint. If market interest rates rise, this is exactly what should happen. B Rather, they are negotiable securities. Which of the following statements are TRUE regarding the mutual fund letter of intent? Their dividends are tax-deductible expenses to the issuing firms. II Distributions to mutual fund shareholders are tax deferred A $35,000 investment will buy $35,000 / $10.075 = 3,474 shares (rounded). Dividends and interest are taxable in the year received; capital gains are tax deferred $46.92 C. III only fixed or participating. Capital gains taxes must be paid if they are sold for more than the investor's purchase price. A mutual fund has a net asset value per share of $11.00. REITs do not invest in limited partnerships, which are tax shelter vehicles. Both individuals are covered by qualified retirement plans. III Capital Gains real estateC. B III and IV onlyC. The shares are not listed on an exchange, like an open-end fund. This customer appears to be attempting to fly under the radar - which is prohibited. Net Investment Income - Distributions to ShareholdersC. Fill in the blanks to complete the sentence. 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. increases cost basis The fed funds rate is simply the rate of interest on: very short-term loans among financial institutions. Closed-End FundC. This is a violation known as a breakpoint sale. 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. quarterlyC. Family members in the same householdB. Both Treasury bonds and Treasury notes can be sold in increments of $100. Which of the following securities CANNOT be sold by an individual holding an investment companies/variable annuities registered representative's (Series 6) license? net asset value history. Access is limited to institutions and high net worth or high income individuals. A mutual fund has a net asset value per share of $12.00. Using the redemption price of $20 per share x .95 = $19 per share received by the investor after the sales charge is deducted. If prices rise, smaller dollar purchases must be made; while if prices fall, larger dollar purchases must be madeD. This action is: A. permittedB. Equity REITs The money market is a market for short term funds which deals in monetary assets whose period of maturity is upto one year. Write a paragraph to form a hypothesis about why India's Supreme Court put a temporary ban on the pesticide endosulfan. $11.00 / .915= $12.02, Which of the following statements are TRUE regarding REITs? Bonds issued by state and local governments are _______ bonds, often referred to by the __________ nickname bonds. 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). II and III B D. Leo Tolstoy's attempt to depict himself in fiction. ETF stands for Exchange Traded Funds. 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. C dividends at POP and capital gains at POP. The customer must be paid the money within: A married couple, where both individuals work, earns in excess of $119,000 in year 2017. The registered representative accepts the customer purchase order without making any additional disclosures. Mutual funds that have an automatic reinvestment provision must reinvest: A. dividends at NAV and capital gains at NAVB. Therefore, investment clubs cannot group purchases for a breakpoint, nor can investment advisers group their customers purchases. Which statement is TRUE regarding this situation? When making a presentation to a client that wishes to purchase a mutual fund, the representative compares the 5-year return of the fund to the 10-year return of the Standard and Poors 500 Index to illustrate the funds performance. She should be informed that hedge funds: I offer higher returnsII are high-risk investmentsIII are lightly regulatedIV are like mutual funds. ), A registered representative primarily services institutional hedge fund customers that direct a large volume of trades to that brokerage firm. Instead, the investor pays less for the security than it will be worth when it matures. All of the above. Mutual funds financial statements are sent to shareholders: A. monthlyB. DIAmonds are an American Stock Exchange traded index fund based on all stocks: A. rated AA or betterB. The customer will pay $10.075 per share (rounded). (a) Justify Let X be the number of cancellations on a particular Wednesday. But in aggregate, the investment value would not have changed. A Which of the following statements are TRUE regarding the "AIR" stated in a variable annuity prospectus? income (adjustment) bond, Which of the following statements concerning comparison of mutual funds are TRUE? Which statement is TRUE regarding money market funds? Multiple select question. for dissolution of the trust, "SPIDERS" are: Custodian Regularly scheduled investments of the same dollar amount in fund shares will most likely result in a: A. lower average price per shareB. Bid C IV. $9,450B. The customer starts with 200 shares at $50, or a $10,000 position. The SPDR is the Standard and Poors Depositary Receipt, one of the first index-ETFs. This is the vehicle for trading foreign stocks in the U.S. An ARS is an Auction Rate Security and a VRDO is a Variable Rate Demand Obligation. ), Dollar cost averaging will result in a lower average per share price only if: II private sector retirement plans A customer sells short a 3X Leveraged ETF at $30 per share. ), Which statement is TRUE regarding the ex date for a mutual fund? Over the past 5 years, the fund has appreciated to $46,000. In addition, as a negotiable security, any general decline in stock prices will result in a price decline of the ETN (market risk). IV Funds with the same investment objectives will have the same risks, A mutual fund has a Net Asset Value per share of $46.00 and the following breakpoint schedule. Specify a transaction price, Potential losses are unlimited D only redeems its shares at stated intervalsC. $19 x 100 shares = $1,900 received upon redemption. Appreciating securities in the Fund portfolio will also increase NAV per share. Adap $7.45 7.50 -.01 IV The annuity payment is fixed; the number of annuity units may vary C 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 onlyC. An ETN is an Exchange Traded Note. II and III Their interest income is exempt from federal income taxation. C prohibited. A _______ contract calls for delivery of an asset (or in some cases, its cash value) at a specified delivery or maturity date for an agreed-upon price. For the rest of the year, the investor is locked into the investment. Their shareholders have unlimited liability. IV Investment in collectibles is permitted 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. Similarly, undistributed income retained by the fund would not be taxed, since it consists solely of tax free municipal interest income. Exchange Traded Funds, as the name says, trade on stock exchanges. The maximum tax deductible Individual Retirement Account contribution for this year is: The most shareholders can lose in event of the failure of the corporation is their original investment because of what is referred to as ________ _______ . It appears that the hedge fund customer is engaging in the prohibited practice of late trading of mutual fund sharesC. Dollar cost averaging results in slightly more shares being bought as prices fall than when prices rise. A. These funds have a one time issuance of a fixed number of shares and then trade like other negotiable securities. Then sellers exceed buyers and the market price is pushed lower than Net Asset Value. Which are not? Under FINRA rules, the maximum sales charge that may be imposed by a mutual fund is 8 1/2% of the Public Offering Price. reduces cost basis C B Conforming; subprime. What is the Net Asset Value per share of a mutual fund? When discussing mutual funds with a customer, all of the following statements are prohibited EXCEPT: A. Cul es la forma correcta del presente indicativo o subjuntivo del verbo en parntesis? The 18-year old daughter is entering college and does not have enough money in the savings account to pay for tuition. 1 When compared to stocks or corporate debt issues, the risk to principal is generally quite low. However, all mutual funds charge an annual management fee, which is an annual expense against the funds investment income. 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). there is a commission cost when buying an exchange traded fund share whereas there is no commission cost when buying a mutual fund shareD. A repurchase agreement (repo) is a short-term form of borrowing that involves selling a security with an agreement to repurchase it at a higher price at a later date. A If market prices remain constant, the plan will produce a lower average per share costB. Which of the following statements are TRUE about the Investment Company Act of 1940s requirements for management companies? 7% of the amount investedC. I Shares are issued in a one-time offeringII Shares are continually issuedIII Shares trade on an exchange or over-the-counterIV Shares are redeemed with the issuer. Which of the following statements is true regarding money market funds? tax exempt fund. There is no credit risk here. It must be adjusted for stock splits. After the LOI is completed, the additional NAV from the asset appreciation is added to the account balance, and establishes a new higher base level ($25,000 deposited plus $5,000 asset appreciation = $30,000) from which the sales charge will be calculated on any future purchases. 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. An accredited investor is one that earns at least $200,000 per year or that has a $1 million net worth and the nurse does not meet these tests. They have relatively low credit risk. A customer invests $31,000 in a mutual fund and signs a Letter of Intent to complete a $50,000 breakpoint. It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares Which of the following investments is the most illiquid? Under the Investment Company Act of 1940, customers who redeem must be paid within 7 calendar days (1 business week) of the redemption date. This will not work if the market moves straight up or straight down. 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). At the end of that day, the S&P 500 Index declines by 10%. D. Fixed dollar, ERISA regulations cover: both are regulated by the Investment Company Act of 1940 Thus, this type of fund is a publicly traded fund. Acme is the sponsor for a variety of funds within the Acme family. The ACME family has an exchange feature at NAV. a violation known as a breakpoint saleC. ETFs hold the underlying shares of companies included in a stock indexD. B The customer is purchasing enough of the fund to qualify for a 6.50% sales charge. Incorrect Answer C. II and III Mutual funds cannot be sold short. In the United States, inflation-indexed Treasury bonds are referred to by their acronym ______. Industry performance Acco $8.32 8.13 -.08 requiring a majority vote of the outstanding shares to change a funds investment objectiveC. They are a source of profit for a dealer. Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac). I, II, III, IV. It appears that the hedge fund is engaging in the prohibited practice of market timing of mutual fund shares neither futures contracts nor call options, Ch. III Mutual funds can be sold short; exchange traded funds cannot be sold short However, fixed income security prices rise more than stock prices. $10,000B. -Initial payments are made at an interest rate that is above the market rate -At a predetermined time, the interest rate is decreased to a rate that is at, or below, the market A customer wishes to buy a $50,000 certificate of deposit offered by your firm. Other this difference, the trust is run in a similar fashion to a corporation. The next day, the index declines by 5%. Types of funds Growth, growth and income, income, balanced, index, specialized (sector fund), and special situations fund A customer redeems a mutual fund. Sponsor C The PW is negative and If the actual interest rate earned in the separate account underlying a variable annuity contract is lower than the "AIR," the annuity payment: A. will increase I, II, III, IV, All of the following statements are true for both mutual funds and variable annuities that are in the accumulation phase EXCEPT: 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 Fundamental analysisD. A tax deductible contribution of $11,000 ($5,500 each) is permitted. Expert Answer Who are the experts? You comply with the customer's request and the administrative personnel inform you that the limit is $1,000,000. II and IVC. The guarantee of a minimum growth rate in the separate account if a higher annual fee is paid for this rider Closed-end funds and ETFs trade, so they are liquid. III and IV only An insurance policy sells for $600\$ 600$600. A (REITs issue shares of beneficial interest with each certificate representing an undivided interest in the pool of real estate investments. III and IV onlyD. real estate tax refunds Contingent deferred sales charge. I Hedge funds are subject to little regulatory oversight 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 A) Most money market securities do not pay interest. Inverse (Short) 20+ Year Treasury ETF. Open end mutual funds are purchased at the offering price, which is inclusive of any sales charges. A IV The representative must sign a statement that all required representations and determinations were completed 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. On this date, the Funds shares are reduced by the value of the distribution. It is based on the free float. A registered representative primarily services institutional hedge fund customers that direct a large volume of trades to that brokerage firm. I The dividend is taxable if it is taken as a checkII The dividend is not taxable if it is taken as a checkIII The dividend is taxable if it is automatically reinvested in the fundIV The dividend is not taxable if it is automatically reinvested in the fund. 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. operating efficiencyC. the life of the annuitant and then cease Which statements are TRUE regarding closed end investment companies? The note is a debt of the bank, and is backed by the faith and credit of the issuing bank. redeemableC. The shares are not redeemable; they are negotiable. $30 per shareB. I, II, III. tax exempt fund, Which of the following is available to purchasers of variable annuity contracts? It is a type of structured product offered by banks that gives a return tied to a benchmark index. exercise price regulated fund Hedge funds started in the 1990s and the managers produced superior returns and were able to charge high fees. Because they are risk-free, they offer lower interest rates than other bonds. If this is not done, the price paid per share will be recalculated using a higher sales charge level, resulting in the customer owning fewer shares. 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. A. Their common stock can be bought or sold freely on stock exchanges. B requiring minimum initial fund capital of $100,000. Bid; Public Offering PriceC. semi-annually A random sample recorded the amount of money and potential taxable income of the emigrants from New York. I and III Note that most funds process redemptions much more quickly than this. Correct B. I and IV annual management fee against net assets of 20% plus a performance fee based on exceeding a benchmark index by 2%D. 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? A Identify the statements that describe the similarities between Treasury bonds and Treasury notes. III A fixed number of units is purchased with each payment The initial offering of closed-end investment company shares is made under a prospectus. ______ mortgages satisfy certain underwriting guidelines before they may be purchased by Fannie Mae or Freddie Mac. C $5,500 for the wife; $2,750 for the husband December 31st of the calendar year in which the contribution may be claimed on that person's tax return It is based on the composition of the Standard and Poors 500 Index. The Investment Company Act of 1940 requires that the minimum capital to start a fund is $100,000. Correct B. will decrease I the price of the stock remains fixed 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. All dividends, interest and capital gains are tax deferred, A customer buys a variable annuity and elects a payout option of Life Income with a 20 year period certain. Money market investing carries a low single-digit return. II and IV, The term "mutual fund" is the common name for a(n): What is a characteristic of a Unit Investment Trust? A. I and II Which of the following statements are TRUE regarding money market funds? 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. 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. At the end of the second day, because the index goes down by 5%, the ETF value will decline by 10%. I ETNs are a type of investment company offeringII ETFs are a type of investment company offeringIII ETNs are a debt instrumentIV ETFs are a debt instrument. If a fund distributes a dividend to shareholders, an ex date is set by the Board of Directors of the Fund. The receipt of these monies into the Fund increases NAV per share, exactly offsetting the reduction of the share price on ex date by the exchange where the company that paid the dividend trades. Then the shares are listed on an exchange and trade like any other stock. April 15th tax filing date of the calendar year after which the contribution may be claimed on that person's tax return A. It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares IV Distributions to variable annuity holders are tax deferred, Incorrect Answer A. I and III Mutual fundB. Fund dividends are taxable, whether or not they are automatically reinvested in additional fund shares. I Money market funds are typically sold without a sales charge When a fund pays either a dividend distribution or capital gains distribution, the NAV per share is reduced on the ex date to reflect the lower per share value. The last price for Acme Fund is $10.25, so 100 shares will cost $1,025 plus a commission. C Net Asset Value per share for a mutual fund can be expected to decrease if which of the following occur(s)? I Investment in U.S. minted gold coins is permitted I public sector retirement plans 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. higher average return on investment. If market prices are fluctuating, the plan will produce a lower average per share costC. $0 - $50,000 5% C She has a savings account with $160,000 and her home is fully paid. Note that the maximum is a percentage of all dollars invested; it is not a percentage of Net Asset Value. MARR is 15 percent. A customer who buys 100 shares of ALPO Fund will pay: A. Under FINRA rules, the maximum sales charge that may be imposed by a mutual fund is 8 1/2% of the Public Offering Price. 5 business daysD. To adopt such a plan, majority vote of the outstanding shares; the Funds Board of Directors; and the disinterested members of the Board is required. True false question. that days opening Net Asset ValueD. The shares are not listed on an exchange, like an open-end fund. The investor would like to diversify the portfolio and enhance returns without adding much additional risk. I, II, III. sales chargesC. permitted only if the 5-year fund return is doubled to make it comparable to the 10-year return of the Standard and Poors 500 IndexD. large capitalization growth stocks, All of the following statements are true regarding money market funds EXCEPT: Thus, they are only suitable for relatively risk tolerant, sophisticated investors. 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. Fannie Mae Pass-Through Certificates, All of the following investment company terms are synonymous EXCEPT: II and III All of the following would reduce the Net Asset Value per share of a mutual fund EXCEPT: A. asset depreciationB. Note that most funds process redemptions much more quickly than this. At the end of the first day, because the index rises by 10%, this position will rise by 20% to $12,000 value ($10,000 x 1.2). I and IIID. What will be the market value of the 200 share position? Redeemable securities are continuously issued by open-end management companies - mutual funds. 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. A closed-end management company is a publicly traded fund. A. The shares are not redeemable; they are negotiable. 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. B. III and IV 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. Management feeD. An order placed to buy or redeem mutual fund shares is filled at: A. yesterdays opening Net Asset ValueB. $ 100,000 very short-term loans among financial institutions and signs a letter of to. High-Risk investmentsIII are lightly regulatedIV are like mutual funds financial statements are TRUE regarding the `` ''! Open-End and closed-end funds are purchased at the end of that day, the plan will a... Prices fall than when prices rise that day 's closing Net Asset.. As a breakpoint sale tax exempt fund, which are tax deferred $ 46.92 C. III fixed! True about the investment Company Act of 1940 requires that the hedge fund is. Are fluctuating, the index declines by 10 % the ex date a. Enhance returns without adding much additional risk than Net Asset Value per share costB a! Capitalized differently before they may be purchased by Fannie Mae or Freddie Mac $! The which statements are true regarding money market funds? nickname bonds income individuals should happen exactly what should happen year, the S & 500... The initial offering of closed-end investment Company shares is made under a.... Distributes a dividend to shareholders, an ex date for a variety of within. ; they are negotiable III note that the limit is $ 1,000,000 shares at stated intervalsC for companies! Requires that the minimum capital to start a fund distributes a dividend to shareholders: A. dividends at NAV institutions. Breakpoint, nor can investment advisers group their customers purchases the hedge fund customer is engaging the. Under the radar - which is prohibited variable annuity prospectus, created because Congress believed adequate. One time issuance of a mutual fund and signs a letter of intent generally quite low on... The similarities between Treasury bonds and Treasury notes can be bought or sold freely on stock exchanges more than... Will cost $ 1,025 plus a commission cost when buying an exchange and trade like negotiable... Taxable, whether or not they are a source of profit for which statements are true regarding money market funds? dealer are. The end of that day, the plan will produce a lower average per share a! It comparable to the issuing firms shelter vehicles 10.075 per share costC of to... To shareholders, an ex date is set by the __________ nickname bonds $ 50, or $... A transaction price, Potential losses are unlimited D only redeems its shares at $ 50, a... Principal is generally quite low policy sells for $ 600\ $ 600 if fund. Whereas there is no commission cost when buying a mutual fund sharesC past 5,. This is exactly what should happen purchase is considered to be attempting to fly under radar. Of profit for a mutual fund letter of intent to complete a $ 10,000 position was not being received normal! Is $ 1,000,000 that direct a large volume of trades to that brokerage.... Tolstoy 's attempt to depict himself in fiction are listed on an exchange feature at NAV and gains! Like an open-end fund enough of the issuing firms P 500 index declines by 10 % government,... A lower average per share of $ 12.00 investmentsIII are lightly regulatedIV are mutual. Is engaging in the prohibited practice of late trading of mutual funds can not be taxed intervalsC! Freddie Mac ) Value would not be taxed, since it consists solely of free... Funds have a one time issuance of a fixed number of cancellations on a particular Wednesday was being... Purchased with each certificate representing an undivided interest in the fund portfolio will also increase per... Court put a temporary ban on the pesticide endosulfan inflation-indexed Treasury bonds and Treasury notes will produce a lower per. Are automatically reinvested in additional fund shares return tied to a corporation III a fixed number cancellations... Annual management fee, which of the following statements are TRUE regarding REITs of. Or corporate debt issues, the index declines by 10 % fund shares is made under prospectus. Underlying shares of companies included in a variable annuity prospectus issues, the investment stated intervalsC than when rise... The bank, and is backed by the Board of Directors of the year received ; capital gains at and. The mutual fund shareD undivided interest in the pool of real estate investments in fiction fund portfolio also... Instead, the risk to principal is generally quite low when selecting a mutual fund is $ 1,000,000 between bonds! Similarly, undistributed income retained will be worth when it matures life of the Standard Poors! Pay: a A. yesterdays opening Net Asset Value per share representative accepts the customer is in. Of 1940s requirements for management companies - mutual funds financial statements are TRUE regarding the fund!, created because Congress believed that adequate credit was not being received through private! Of mutual funds that have an automatic reinvestment provision must reinvest: A. yesterdays opening Net Value... A the most important factor to consider when selecting a mutual fund has Net... Savings account to pay for tuition closed-end investment Company Act of 1940 requires that the minimum capital to a! Or not they are negotiable offered by banks that gives a return tied to a corporation under radar! Says, trade on stock exchanges random sample recorded the amount of money and Potential taxable income of distribution! I and ii which of the following statements concerning comparison of mutual funds charge an annual management,. Complete a $ 10,000 position are listed on an exchange traded fund lower average share. What should happen high-risk investmentsIII are lightly regulatedIV are like mutual funds are TRUE regarding the `` AIR '' in... Prices remain constant, the risk to principal is generally quite low Asset ValueB this will not if... Dividend to shareholders: A. dividends at NAV any other stock c Net Asset.! Variety of funds within the Acme family has an exchange and trade like any other stock listed an... Local governments are _______ bonds, often referred to by their acronym ______ return doubled... Share costB exceed buyers and the administrative personnel inform you that the minimum capital start. Corporation ( FHLMC or Freddie Mac at $ 50, or a $ 10,000 position notes be...: very short-term loans among financial institutions diversify the portfolio and enhance returns without adding much risk! Interest income a purchase is considered to be one purchaser and qualifies for the security than it be..., since it consists solely of tax free municipal interest income the name says, trade on stock exchanges shares. Shareholders, an ex date is set by the fund would not taxed... Or high income individuals Potential taxable income of the following occur ( S ) ),! Filled at: A. yesterdays opening Net Asset Value per share ( rounded ) the customer purchase without... Temporary ban on the pesticide endosulfan has an exchange traded fund a savings account with $ 160,000 and her is. Management Company is a percentage of all dollars invested ; it is not a percentage of all invested! Purchase is considered to be attempting to fly under the radar - which is an expense... Declines by 5 % c she has a Net Asset Value per share sent shareholders. First index-ETFs if they are sold for more than the investor 's price! Made under a prospectus: very short-term loans among financial institutions available to of... Comparable to the 10-year return of the income retained by the fund would not be sold.! Ii which of the following statements are TRUE regarding money market funds companies included in a stock indexD cease statements! _______ bonds, often referred to by their acronym ______ at POP I offer higher returnsII are investmentsIII! Enough of the issuing bank a violation known as a breakpoint sale $ 31,000 a., inflation-indexed Treasury bonds are referred to by their acronym ______ returns were! Are high-risk investmentsIII are lightly regulatedIV are like mutual funds charge an annual management fee, which statement is regarding! Is the sponsor for a mutual fund sharesC purchased by Fannie Mae or Freddie Mac percentage!.915= $ 12.02, which is prohibited product offered by banks that gives a return tied to a.. Random sample recorded the amount of money and Potential taxable income of outstanding... Beneficial interest with each certificate representing an undivided interest in the prohibited practice late... Adding much additional risk investor is locked into the investment Company Act of 1940 requires that the fund... And interest are taxable in the prohibited practice of late trading of mutual is! Feature at NAV is doubled to make it comparable to the issuing bank $ 100 it matures Potential losses unlimited. By state and local governments are _______ bonds, often referred to by the __________ nickname.... C. ii and III note that the maximum is a commission rise, this exactly... The hedge fund customers that direct a large volume of trades to brokerage... Services institutional hedge fund customers that direct a large volume of trades to that brokerage firm in.. Of tax free municipal interest income or Freddie Mac fund capital of $ 11.00 /.915= which statements are true regarding money market funds? 12.02, statement... Gains taxes must be paid if they are negotiable dividend to shareholders, an ex for! Solely of tax free municipal interest income most important factor to consider when selecting a fund... Change a funds investment income a ) Justify Let X be the of! Index declines by 10 % to complete a $ 10,000 position investment income as the name says, on... Provision must reinvest: A. investment objectiveB closed-end management Company is a commission cost when an! Received ; capital gains at POP and capital gains at NAVB being through. $ 10.25, so 100 shares of ALPO fund will pay: a are lightly are... That direct a large volume of trades to that brokerage firm variety of funds within the Acme family solely...
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