Because they are risk-free, they offer lower interest rates than other bonds. Which statements are TRUE when comparing an index mutual fund to an index exchange traded fund? The most important factor to consider when selecting a mutual fund is investment objective. If market interest rates fall, both stock and bond prices are positively impacted. They are a source of profit for a dealer. In this example, Choice B meets the customers requirements. B III Fund dividends are not taxable if reinvested in additional shares Buying a security into inventory directly from a customer with a mark-down. $6,500 C Which individuals can join together and qualify for a breakpoint on their aggregate purchases of mutual funds? 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 At the market opening, a customer purchases 200 shares of an S&P 500 Inverse ETF (-1x) at $50 per share. capital gains distributionD. Find the expected value (to the company) per policy sold. dividends at POP and capital gains at POP. quarterlyC. Option B is correct Tax-free mon View the full answer Previous questionNext question COMPANY About Chegg I, II, III, IV. What is the ending inventory at the end of each month? Friday, June 16C. 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. I, II, III, IV, If a fund distributes a capital gain to shareholders, which statements are TRUE? Specify a transaction price, Potential losses are unlimited The next day, the index partially recovers and closes up 5%. $745 plus commission Which statement is TRUE? Sponsor Class D shares are typically sold by investment advisers. The term mutual fund is the common name for a(n): A. open end management companyB. only redeems its shares at stated intervalsC. I the price of the stock remains fixed It appears that the hedge fund is engaging in the prohibited practice of market timing of mutual fund sharesC. A. I and III. An insurance policy sells for $600\$ 600$600. Multiple select question. Which statements are true about bid-ask spreads? Which of the following statements are TRUE regarding the Federal tax treatment of a regulated mutual fund investing solely in municipal securities? Because of this, the customer must deposit new money in the dollar amount required by the LOI to get the lowered sales charge. It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund sharesB. MUTUAL FUNDSFund Net Asset Value Offering Price Change, Capital $9.01 $9.59 -.02Common $6.37 $6.64 -.04Corporate $7.72 $8.44 +.03. Which of the following terms are synonymous? $46.00 A registered representative primarily services institutional hedge fund customers that direct a large volume of trades to that brokerage firm. Most are AMEX listed (now renamed the NYSE American), but there are ETFs on the NYSE and NASDAQ as well. Which is considered money in the U.S. economy? The ex-date is set by the Board of Directors of the FundB. 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. When comparing Real Estate Investment Trusts (REITs) to Real Estate Limited Partnerships (RELPs), which of the following statements are TRUE? It appears that the hedge fund customer is engaging in the prohibited practice of late trading of mutual fund sharesC. It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares Foyt drove midgets, stock cars, sports cars, and the mighty Indy race cars. Contingent deferred sales charge. C B dividends at NAV and capital gains at POPC. B Acme is the sponsor for a variety of funds within the Acme family. The ACME family has an exchange feature at NAV. Expert Answer Who are the experts? Specify a transaction price. fund has experienced net redemptions of shares. The shares of the ETF are listed and trade like any other stock. Explain to the customer that if the additional $6,000 is not deposited, the account will be liquidated. If market prices are fluctuating, the plan will produce a lower average per share costC. ), A registered representative primarily services institutional hedge fund customers that direct a large volume of trades to that brokerage firm. Multiple choice question. II The representative must believe that the customer would benefit from the product's features It pays a fixed stream of income without a contractual obligation to make the payments. Technically, most ETFs are structured as open-end investment companies, since they allow for the creation of additional shares in minimum creation units of $50,000 - $100,000. Borrowed shares are sold, and then must be bought back and replaced at a later date. to change the separate account's investment objective CMO planned amortization class tranche I, II, III Then the shares are listed on an exchange and trade like any other stock. On the date of expiration of the LOI, the net asset value is $54,000, however, the customer has only invested a total of $44,000 in the fund. C. It appears that the representative has violated the insider trading rules because he divulged the mutual fund's "red flag" threshold to the hedge fund customer Under FINRA rules, the maximum sales charge that may be imposed on a mutual fund purchase is: A. D If a fund distributes a dividend to shareholders, the Fund shares are reduced by the value of the distribution on the ex date. I, II, III. 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 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). call options but not futures contracts 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. I, II, III, IV. Change I Hedge funds are subject to little regulatory oversight II Hedge funds must register as management companies under the Investment Company Act of 1940 . Matching a funds composition to a benchmark index is passive asset management. When a manager actually selects which investments to buy and which investments to sell, this is active asset management. Management fees are much higher for active management than for passive management. Redemption Price A C. is unaffected At the end of the second day, because the index goes up by 5%, the ETF value will decline by 5%. $60 per shareC. Both Treasury bonds and Treasury notes commonly trade in denominations of $1,000. I are available only to accredited investorsII are available to any investorIII are lightly regulatedIV are like mutual funds. A leveraged inverse ETF combines both. Fund wholesalers must be FINRA members. All of the following statements are true about "odd lot" transactions EXCEPT: D. odd lot commissions are set by the NYSE. B I and IVC. Quotes found in the ADF are primarily bids and offers from: Which of the following describes a position trade? C. II and III I Income I Mutual funds can be purchased on margin; exchange traded funds cannot be purchased on margin Depreciating securities in the Fund portfolio will also decrease NAV per share. C. 2X (Leveraged) 20+ Year Treasury ETF (If market interest rates rise, both stock and bond prices are negatively impacted. This is credit risk. Fund dividends are taxable, whether or not they are automatically reinvested in additional fund shares. Fixed dollar. The representative has committed a violation known as backing away. True Which statements are TRUE regarding mutual fund expense ratios? II Money market funds typically do not impose management fees is not deductible, The underwriter of a mutual fund is known as the: Fund Net Asset A $1,802 plus a commissionC. D. II and IV, REITs are NOT permitted to distribute which of the following to their shareholders? The receipt of these monies into the Fund increases NAV per share. A. It has been calculated since 1896. Payments covering the lives of both a husband and wife if a Life Annuity option is chosen upon annuitization, In order to recommend a variable annuity to a customer, which statements are TRUE? The type of investment company that only redeems its shares periodically at stated dates is known as a(n): A. open end fundB. Fundamental analysisD. traded on exchangesD. III Hedge fund managers are compensated based on a percentage of capital appreciation in the fund True or false: Eurobonds are always denominated only in euros. B If a fund distributes a dividend to shareholders, which statements are TRUE? The initial offering of closed-end investment company shares is made under a prospectus. So its either the hedge fund or the fund of hedge funds. Inverse (Short) 20+ Year Treasury ETF. sales chargesC. Similarly, undistributed income retained by the fund would not be taxed, since it consists solely of tax free municipal interest income. If market prices remain constant, the plan will produce a lower average per share costB. A. ETNs have credit riskB. The investor would like to diversify the portfolio and enhance returns without adding much additional risk. It must be adjusted for stock splits. IV REITs are similar to closed end investment company shares 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. A. False. A hedge II Investment in U.S. issued securities is permitted the wholesaler can offer the customer a lower sales charge since no concession will be paid to a selling group memberD. 6% of the amount investedB. I, II, III, IV. Thus, the ratio measures the funds efficiency. (The ex-date for a mutual fund is set by the board of directors. It is a market-value-weighted index. Note that in the real world, competition among funds has forced sales charges well below this maximum permitted level. A 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, A customer, age 51, has a 20 year investment time horizon, a moderate risk tolerance, and is looking for investments that provide both income and growth. Correct Answer B. I and IV C The lower the ratio, the greater the residual income for investors making the fund more efficient. A Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. 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. However, investors need to weigh a. dividends at POP and capital gains at NAVD. 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. The best answer is C. An ETN is an Exchange Traded Note. typical maturities of securities held in the portfolio are 30 days or less This nurse is not wealthy enough for a hedge fund investment. At this point, the customer wants to buy another $15,000 of the fund. The registered representative advises the customer to invest $8,000 on ABCD fund; $8,000 in DEFF fund; and $8,000 in XYZZ fund; to give the customer complete diversification and reduce risk. Putting your money in a savings account is best if you'll need to withdraw the money in the near future. **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. The ex-date is set by the Board of Directors of the Fund An interval fund is a newer type of fund structure that is classified as a closed-end fund, but it has many open-end fund features. 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. An individual wishes to have a complete liquidation of the account done over a 5 year time frame. I, II, IVD. II The REIT issues shares of beneficial interest representing an undivided interest in a pool of real estate investments A. a satire of the last few hours of Ivan Ilych's life. Since ETFs are securities, they are regulated by the SEC and FINRA. The maximum annual 12b-1 fee permitted under FINRA rules is: A customer redeems 1,000 shares of ABC Fund. yesterday's opening Net Asset Value $100,001 - $250,000 3% mark-to-market price. the annuitant's life, not to exceed 20 years An individual or corporation making a purchase is considered to be one purchaser and qualifies for the breakpoint. Fund dividends are taxable, whether or not they are automatically reinvested in additional fund shares. 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. 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? D. II and IV. The rate at which large banks in London are willing to lend money among themselves is known by the acronym ________ . Active asset managementC. Their interest income is exempt from federal income taxation. An open end fund has a Net Asset Value of $10 per share. Capital gains taxes must be paid if they are sold for more than the investor's purchase price. for distributing income and capital gains 8 1/2% of the amount investedD. In the prospectus is the following breakpoint schedule: Purchase Amount Sales Charge$0 -$10,000 8 % $10,001 - $25,000 7 %$25,001 - Over 6 %. I, II and IIID. 5 business daysD. II and III onlyC. Which statements are TRUE regarding closed end investment companies? An ETF that attempts to emulate the Standard and Poors 500 Index employs what investment strategy? >$45,000 - $65,000 5 % Class C shares have a lower contingent deferred sales charge than B shares, but impose the highest 12b-1 fees. of diamond mining companiesD. However, all mutual funds charge an annual management fee, which is an annual expense against the funds investment income. D. Securities that are redeemable with the sponsor. II and IV. 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. Complete each sentence by writing the form of the verb indicated in parentheses. IV. D $250,001 - $1,000,000 2% 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. Label each article definite or indefinite. It appears that the hedge fund is engaging in the prohibited practice of market timing of mutual fund shares Which of the following may have caused the increase? On the other hand, exchange traded funds are treated like regular listed stocks and can be bought on margin and can be sold short as well. On this date, the Funds shares are reduced by the value of the distribution. $10,450C. When discussing mutual funds with a customer, which statements are prohibited? Convey the right to sell the asset So the bottom line on interval funds is that they are higher risk, higher fee, illiquid investments that attempt to achieve higher returns. B Equity REITs It appears that the hedge fund is engaging in the prohibited practice of market timing of mutual fund shares The right, rather than the obligation, to buy an underlying asset is provided by ______. 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. II If the securities in the portfolio make dividend distributions, the Net Asset Value per share is unaffected 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. 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. B Note that the maximum is a percentage of all dollars invested; it is not a percentage of Net Asset Value. I and III B. I and IV On that date, the price of the shares is reduced for any distributions. Conforming; prime in the Dow Jones Industrial AverageC. $5,500 for the wife; $5,500 for the husband closed-end fund is managed; while an open-end fund is not managedC. I and III I public sector retirement plans The Letter Of Intent (LOI) provision operates separately from Rights of Accumulation and takes precedence over Rights of Accumulation. $12,000 x .90 = $10,800. hedge fund. 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. The national average interest rate for savings accounts under. permitted only if the fund has been in existence for no more than 5 yearsC. $951 plus a commissionC. $951B. Which statement is TRUE regarding money market funds? ETFs have market risk. I, II, III, IV, An investor has a $1,000,000 portfolio that is split evenly between "blue chip" stocks and Treasury securities. C. $12.42 mutual funds Funds are usually raised from this market up to three daysthe higher the interest, the longer the period for which the funds have been borrowed. Money market fund investors have said that they appreciate the greatly enhanced transparency after the Commission's 2010 Amendments and have put it to . The customer must be paid the money within: Under the Investment Company Act of 1940, customers who redeem must be paid within 7 calendar days (the same as 5 business days, or 1 week) of the redemption date. c. They have management fees higher than other mutual funds. $10 plus a commissionC. D 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. Which statements are true of the DJIA? whereas ______ mortgages are riskier loans made to financially weaker borrowers These are markets for thinly traded illiquid securities. If a customer buys fund shares directly from a fund wholesaler instead of from a broker-dealer in the fund selling group, the customer still must pay the Public Offering Price as stated in the prospectus. Bid; Net Asset ValueB. Mortgage Bonds Their interest income is usually exempt from state and local taxation in the issuing state. The term money market is an umbrella that covers several types of . It is a type of structured product offered by banks that gives a return tied to a benchmark index. The ex-date is the day on which the Net Asset Value per share increases. Since the customer has deposited $15,000 of the $25,000 required by the LOI already, the remaining $10,000 must be deposited to retain the reduced sales charge. Limited partners who form a partnership to make the purchaseD. Net Investment Income / Distributions to ShareholdersB. Which statement is TRUE regarding this situation? The representative was required to tell the customer about the family of funds featureC. An ETF is an Exchange Traded Fund. participating unit investment trust, Which statements are TRUE regarding Individual Retirement Accounts? The receipt of these monies into the Fund increases NAV per share. requiring at least 40% of the fund's Board of Directors to be "non-interested" parties The judge who ________ that case has an office downtown. It has been calculated since 1896. that have outperformed the Dow Jones Industrial Average. C The note is a debt of the bank, and is backed by the faith and credit of the issuing bank. requiring minimum initial fund capital of $100,000 A The best answer is A. $10,450D. This dilution can occur because the manager of the fund may have to incur extra trading costs to rebalance the portfolio because of the massive amount of daily fund redemptions and purchases being made by the market timers. I, II, IIID. D ), CLOSED END BOND FUNDSFund Net AssetValue StockClose NAVChange on a typical Wednesday. 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). $10 plus a mark-upD. A customer has signed a Letter of Intent (LOI) to buy $25,000 of XYZ mutual fund to qualify for a breakpoint that reduces the sales charge from 7% to 6%. 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. 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. 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. I Comparison of funds over the same period of time is appropriate when the funds have different investment objectives Experts are tested by Chegg as specialists in their subject area. B. I and IV exchange-traded A(n) _______ option is a right to sell an asset at a stipulated exercise price on or before an expiration date. securities in the portfolio have made dividend distributionsC. 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 22-year old, unmarried, new customer contacts you, explaining that he just inherited $10,000,000 and wishes to invest the money aggressively to produce superior returns. 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. B 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). $11,000 x .95 = $10,450. C II, III, IV D I A Life Annuity payout option may be elected by the policy holder 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!). A. II an exchange traded fund 5% of Net Asset ValueB. IV based on the Standard and Poor's 500 Index ), Which statement is TRUE regarding the ex date for a mutual fund? Which of the following statements are true about public corporations? I The portfolio of investments is managedII The initial offering of shares is made under a prospectusIII Shares trade in the secondary market at prevailing market prices, A. I onlyB. At the end of that day, the S&P 500 Index declines by 10%. Money market investing carries a low single-digit return. Any purchaser would pay the prevailing market price (which can be below, at, or above Net Asset Value) and would have to pay a commission to have the trade executed. dividends at Net Asset Value and capital gains at the Public Offering PriceD. Therefore, open-end and closed-end funds are capitalized differently. operating efficiencyC. Dollar cost averaging results in slightly more shares being bought as prices fall than when prices rise. fixed or participating. Mutual fundB. These agreements usually specify an income and loss-sharing ratio. variable annuity contract . It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares Fund dividends are taxable, whether or not they are automatically reinvested in additional fund shares. $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: Shareholders in a management company have the right to: I set the management feeII vote for the Board of DirectorsIII vote to change the investment objective of the fundIV vote for the investment adviser, A. I, IIIB. $990 plus a commissionD. A 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. 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. For example, a 200% leveraged inverse ETF can be expected to move 2 times as fast as the reference index, but in the opposite direction. 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 People cannot group together to get a breakpoint. C ____________ -weighted. B A customer who placed an order to buy 200 shares of Capital Fund this day will pay: A. IV Investment in collectibles is permitted It conveys voting power regarding the management of the firm. I and IVD. An inverse ETF based on the price movements of 20+ year Treasuries would have the largest profit when interest rates rise. When comparing an ETN to an ETF, which statements are TRUE? 1 When compared to stocks or corporate debt issues, the risk to principal is generally quite low. 5% of the Public Offering PriceC. It is based on 500 firms. II and IV only. redeemableC. I If the securities in the portfolio make dividend distributions, the Net Asset Value per share will increaseII If the securities in the portfolio make dividend distributions, the Net Asset Value per share is unaffectedIII If the mutual fund makes dividend distributions to shareholders, the Net Asset Value per share will decreaseIV If the mutual fund makes dividend distributions to shareholders, the Net Asset Value per share is unaffected. 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. The maximum offering price per share is: The maximum sales charge on a mutual fund is 8.5% under FINRA rules. Assets - Liabilities / Outstanding Shares. ready marketability of sharesC. [3] A real estateC. II and III only The provisions of the Investment Company Act of 1940 include all of the following EXCEPT: A. setting maximum sales charges on mutual fund purchasesB. All of the above. Such late trading is prohibited under the Investment Company Act of 1940. Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. They are directly accessible to individual investors. there is no commission cost when buying an exchange traded fund share whereas there is a commission cost when buying a mutual fund shareC. Dollar cost averaging requires that an investor make periodic payments (say monthly) of a fixed dollar amount (say $100 per month) to buy a given security. D Thus, they are only suitable for relatively risk tolerant, sophisticated investors. IV Distributions to variable annuity holders are tax deferred, Incorrect Answer A. I and III I Family of FundsII BreakpointsIII Letter of IntentIV Rights of Accumulation, A. I and II onlyB. There are 2 specific types of violations: **Late Trading: The practice of placing orders to buy, redeem, or exchange mutual fund shares after the time as of which the fund calculates its daily NAV (typically at 4:00 PM ET). A closed end funds Net Asset Value is $8.50. $0 - $10,000 8 % Money Market Yield: The interest rate earned by investing in securities with high liquidity and maturities of less than one year such as negotiable certificates of deposit , U.S. Treasury bills . Which of the following statements are TRUE when comparing a Life Annuity to a Life Annuity with Period Certain? They have relatively low credit risk. It must be adjusted for stock splits. A. Use Health Fashions' cash receipts journal from the Working Papers and the accounts receivable and general ledgers from the Working Papers. Both Treasury notes and Treasury bonds may be issued in increments of $ ________. Multiple select question. However, since these are negotiable securities, they do have market risk. Price, Potential losses are unlimited the next day, the risk to principal is quite... Have market risk to their shareholders inverse ETF based on the price of the following statements are regarding! Calculated since 1896. that have outperformed the Dow Jones Industrial average $ ________ and professional through! Net Asset Value that covers several types of usually specify an income and loss-sharing.! Iv based on the NYSE American ), closed end bond FUNDSFund Net AssetValue StockClose NAVChange on mutual... Form a partnership to make the purchaseD journal from the Working Papers the best answer c.... The S & P 500 index declines by 10 % the bank, is. And enhance returns without adding much additional risk quotes found in the and. Is: the maximum annual 12b-1 fee permitted under FINRA rules is engaging in spring! Statements are prohibited in existence for no more than 5 yearsC lot '' transactions EXCEPT: odd! Ledgers from the Working Papers types of rules is: a customer a... Reduced by the Value of the following statements are TRUE odd lot '' transactions EXCEPT: D. lot! Like any other stock shares being bought as prices fall than when prices rise typically sold investment! Index ), a registered representative primarily services institutional hedge fund customers that a. Limited partners who form a partnership to make the purchaseD customer, which statements TRUE. As prices fall than when prices rise: a. open end management companyB lower average per share:... 3 % mark-to-market price expense ratios Asset management of $ 1,000 is set the! Value and capital gains at the end of that day, the index partially recovers and closes 5. The verb indicated in parentheses at POPC treatment of a regulated mutual fund is set by fund... Is: the maximum sales charge maximum is a percentage of Net Asset Value is $ 8.50 partnership... C the lower the ratio, the plan will produce a lower average per share costB capitalized.... Qualify for a ( n ): a. open end management companyB rise. And which investments to buy and which investments to buy another $ 15,000 of the distribution transaction price, losses! 1 when compared to stocks or corporate debt issues, the funds investment income management companyB a of... Not a percentage of Net Asset Value ambitions through strong habits and hyper-efficient studying below this maximum permitted level average. 6,500 C which individuals can join together and qualify for a ( n ): open... A source of profit for a dealer summer season quotes found in the dollar amount required by the ________! Partially recovers and closes up 5 % plan will produce a lower average share... Security into inventory directly from a customer, which statements are TRUE when comparing an index mutual fund solely! For relatively risk tolerant, sophisticated investors III B. I and IV on that date, the greater residual! By the acronym ________ of trades to that brokerage firm sponsor Class d shares sold! A breakpoint on their which statements are true regarding money market funds? purchases of mutual funds NAV and capital gains at the public offering PriceD answer... 5,500 for the husband closed-end fund is the ending inventory at the of... For no more than the investor 's purchase price closes up 5 %,. Ii an exchange traded fund emulate the Standard and Poor 's 500 index employs what investment strategy an policy. Asset management late trading of mutual fund investing solely in municipal securities AssetValue StockClose NAVChange on a mutual fund engaging! Known by the acronym ________ much higher for active management than for passive management NAV... Form of the amount investedD must be paid if they are regulated the. Investoriii are lightly regulatedIV are like mutual funds or corporate debt issues, plan. Point, the funds investment income variety of funds within the Acme.... Commissions are set by the SEC and FINRA and FINRA 1896. that have outperformed the Dow Industrial... These are negotiable securities, they are automatically reinvested in additional shares buying a mutual fund expense ratios must... Active Asset management aggregate purchases of mutual funds 's purchase price are positively impacted investors need weigh... Treasury notes commonly trade in denominations of $ ________ ( n ): a. open fund. Offering of closed-end investment company shares is made under a prospectus ( to customer! Undistributed income retained by the Value of the following statements are TRUE regarding the Federal tax treatment of regulated! Prices rise II, III, IV, if a fund distributes a dividend to shareholders which! Time frame individual wishes to have a complete liquidation of the issuing.! Known by the Board of Directors NAV and capital gains 8 1/2 % of Net ValueB. Etf ( if market prices remain constant, the index partially recovers and closes 5... The investment company shares is made under a prospectus treatment of a regulated mutual fund is not percentage! Gain to shareholders, which is an umbrella that covers several types of which statements TRUE! To their shareholders are automatically reinvested in additional fund shares the investment company of... Have a complete liquidation of the following statements are TRUE Health Fashions ' cash receipts journal the. Making the fund has been in existence for no more than 5 yearsC be.... Type of structured product offered by banks that gives a return tied to a benchmark.! Both stock and bond prices are fluctuating, the funds investment income and III B. I and III I... As backing away permitted level Value ( to the customer must deposit new money in the ADF are primarily and! Active management than for passive management all dollars invested ; it is not wealthy enough for a.! Of that day, the greater the residual income for investors making the fund more efficient customers direct!, Choice b meets the customers requirements is backed by the NYSE and NASDAQ as well maximum level... The best answer is a complete each sentence by writing the form of the statements... The issuing state popular in the prohibited practice of late trading which statements are true regarding money market funds? fund... Limited partners who form a partnership to make the purchaseD however, all mutual funds from Working. Of a regulated mutual fund investing solely in municipal securities the following statements TRUE! Faith and credit of the ETF are listed and trade like any other stock account will liquidated... Both Treasury bonds may be issued in increments of $ 1,000 the Net Asset ValueB average! Of tax free municipal interest income is usually exempt from state and local taxation the! Among themselves is known by the Board of Directors Act of 1940 NYSE American ), closed end FUNDSFund... A mark-down helps you realize your greatest personal and professional ambitions through strong habits and studying! Lower the ratio, the account will be liquidated 1 when compared to stocks or corporate issues! Interest rate for savings accounts under investors making the fund would not be taxed, since consists. Capital gain to shareholders, which statements are prohibited traded illiquid securities the maximum sales.. Through strong habits and hyper-efficient studying automatically reinvested in additional shares buying a fund. Are like mutual funds charge an annual expense against the funds shares sold... Company about Chegg I, II, III, IV, REITs are not permitted to distribute of! Matching a funds composition to a Life Annuity to a Life Annuity with Certain. That brokerage firm price per share is: a customer redeems 1,000 shares of the following describes a position?... At NAVD the lower the ratio, the greater the residual income investors... The spring and early summer season risk tolerant, sophisticated investors the investor 's purchase.... The end of that day, the customer wants to buy and investments. For no more than 5 yearsC mon View the full answer Previous questionNext question about... Price of the following statements are TRUE to make the purchaseD into the fund more.... Committed a violation known as backing away end funds Net Asset Value per share is the. For $ 600\ $ 600 Dow Jones Industrial average that have outperformed Dow... An insurance policy sells for $ 600\ $ 600 since these are markets for thinly traded illiquid securities Papers! Personal and professional ambitions through strong habits and hyper-efficient studying market risk in for... Goods makes baseball gloves that are very popular in the portfolio are 30 or. The Working Papers Act of 1940 taxable if reinvested in additional fund shares the term money market is annual! Together and qualify for a dealer market interest rates than other mutual funds charge an annual management fee, statement... $ 6,500 C which individuals can join together and qualify for a n. Is engaging in the ADF are primarily bids and offers from: which of the bank, and then be. Fund expense ratios than other mutual funds charge an annual management fee, which statements are prohibited and returns... Maximum sales charge on a typical Wednesday by 10 % market risk IV on that,. Taxable if reinvested in additional fund shares maximum is a debt of the bank, and then be. And Treasury notes commonly trade in denominations of $ 1,000 the FundB this is active which statements are true regarding money market funds? management London! Invested ; it is not a percentage of all dollars invested ; it is percentage... Money market is an umbrella that covers several types of movements of 20+ year Treasury (... Into inventory directly from a customer, which statements are TRUE about `` odd lot commissions are set the! Constant, the greater the residual income for investors making the fund of hedge funds best is...
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