The formula to find the offering price is: Net Asset Value $9.45 $9.45 = = = $10.33100%-Sls Chrg 100%-8.5% .915. I The capital gain is taxable if it is taken as a check It offers its shares continuously like an open-end fund. 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. I, II, III, IV. The next day, the index declines by 5%. Can you help him figure out the IRR? At this point, the customer wants to buy another $15,000 of the fund. traded over-the-counter. True false question. This makes sense because REITs cannot pass losses to their shareholders. D The ex-date is the day on which the Net Asset Value per share increases. At the market opening, a customer purchases 200 shares of an S&P 500 2X ETF at $50 per share. This action is: A. permittedB. hedge fund. II and IIID. ETFs trade on all of the following markets EXCEPT: Exchange Traded Funds, as the name says, trade on stock exchanges. I and IV 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. Which statements are TRUE regarding mutual fund expense ratios? I Family of FundsII BreakpointsIII Letter of IntentIV Rights of Accumulation, A. I and II onlyB. A annually. B. Value Stock No load funds do not impose any of the following fees EXCEPT: A. I and III A fund that distributes at least 90% of its Net Investment Income to shareholders is termed a(n): A. income fundB. fund of hedge fundsC. growth fundD. They hedge all positions to limit risks. III a fixed dollar amount is invested periodically When discussing mutual funds with a customer, all of the following statements are prohibited EXCEPT: A. A. 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. It pays a fixed stream of income without a contractual obligation to make the payments. The representative has committed a violation known as backing away. Multiple select question. II The REIT issues shares of beneficial interest representing an undivided interest in a pool of real estate investments Note that in the real world, competition among funds has forced sales charges well below this maximum permitted level. 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. They also may provide for additional income and loss-sharing features such as salaries, bonuses, and interest allowances on invested capital. Bid; Public Offering PriceC. 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. Mutual funds financial statements are sent to shareholders: A. monthlyB. I and IVD. The guarantee of payments for life if the purchaser chooses to take a lump sum distribution at retirement A. ETNs have credit riskB. operating efficiencyC. For the rest of the year, the investor is locked into the investment. mark-to-market price. A 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 A. I and III. I. They have relatively low credit risk. Net Investment Income / Distributions to ShareholdersB. Management companies are either open-end or closed-end. B) Pension funds invest a portion of their assets in the money market to have sufficient liquidity to meet their obligations. Compare the unit sales to the units produced and keep a running total. 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. A A A. I and II A 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%. B Therefore, open-end and closed-end funds are capitalized differently. higher average return on investment. A registered representative primarily services institutional hedge fund customers that direct a large volume of trades to that brokerage firm. A C asset appreciation is untaxed for both, Section 529 plans are established by the: yesterday's opening Net Asset Value 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. Note that in the real world, competition among funds has forced sales charges well below this maximum permitted level. large capitalization growth stocks, All of the following statements are true regarding money market funds EXCEPT: The Investment Company Act of 1940 requires that the minimum capital to start a fund is $100,000. There is no requirement for the sponsor to offer families of funds. I and III The type of investment company that only redeems its shares periodically at stated dates is known as a(n): A. open end fundB. A 10 business days. E. a response to Charles Dickens's Sketches by Boz. DIAmonds are an American Stock Exchange traded index fund based on all stocks: A. rated AA or betterB. A. Rights of AccumulationC. $750 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. It is a price-weighted index. Thus, the ratio measures the funds efficiency. A. He is risk-tolerant and understands the use of leverage and shorting as ways of enhancing returns. C I Investment ClubII Omnibus AccountIII Corporate PurchaserIV Individual Purchaser, A. I and II onlyB. D 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). ready marketability of sharesC. Incorrect Answer C. II and III However, for a corporate bond fund, since the interest income from corporate bonds is taxable, distributions from the fund to shareholders are taxable; and any undistributed income retained by the fund will be taxed to the fund. What is the ending inventory at the end of each month? Open-end funds continuously issue and redeem shares. Nonconforming; prime Which of the following are mortgage-related government agencies, created because Congress believed that adequate credit was not being received through normal private sources. It appears that the hedge fund is engaging in the prohibited practice of late trading of mutual fund shares II and III onlyD. A B An individual or corporation making a purchase is considered to be one purchaser and qualifies for the breakpoint. registered or unregisteredD. III onlyC. Bond. A mutual funds expense ratio has been increasing over the last 4 years. Find the expected value (to the company) per policy sold. C An open end fund has a Net Asset Value of $10 per share. real estateC. $750 plus commission, A customer, age 69, has never invested in securities. A balanced fund is one that: A. invests in securities found in one industry or geographic area B. allocates investment among common stocks, preferred stocks, and bonds of companies in various industries C. sells futures on market indices and uses short sales to limit risks of long positions D. invests solely in the common stocks of companies that It must be adjusted for stock splits. D I and IVC. C Which of the following statements are TRUE regarding the Federal tax treatment of a regulated mutual fund investing solely in municipal securities? Buy the fund shares now just before the dividend is paid so you can get immediate income. $30 per shareB. 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. Which statements are true of money market instruments? B. REITs raise capital by borrowing from banks and issuing mortgages. (b) They work as an intermediary between the savers and the investors by mobilising funds between them. II Expense risk An individual wishes to have a fixed portion of the portfolio liquidated each month. Question: Multiple Select Question Select all that apply Which statements are true of money market instruments? $990 Their yields are interpreted as real interest rates. All of the above. Types of funds Growth, growth and income, income, balanced, index, specialized (sector fund), and special situations fund So why would an investor buy into such a fund? This means that payments will continue for: Nonconforming; subprime $46.92 A. setting maximum sales charges on mutual fund purchasesB. There is no credit risk here. The bid price of a mutual fund is $14.30 and the ask price is $15.50. a violation known as spinningD. If a fund distributes a dividend to shareholders, the Fund shares are reduced by the value of the distribution. the customer must pay the Public Offering Price as described in the prospectusC. Fund dividends are taxable, whether or not they are automatically reinvested in additional fund shares. dividends at Net Asset Value and capital gains at the Net Asset Value. ______ mortgages satisfy certain underwriting guidelines before they may be purchased by Fannie Mae or Freddie Mac. ), CLOSED END BOND FUNDSFund Net AssetValue StockClose NAVChange True The customer decides to exchange his Government Bond Fund shares for Growth Fund shares within the same family. income (adjustment) bond, Which of the following statements concerning comparison of mutual funds are TRUE? Technical analysis. An ETN is an Exchange Traded Note. It is a type of structured product offered by banks that gives a return tied to a benchmark index. To impose the maximum sales charge, mutual funds must offer investors which of the following benefits? The provisions of the Investment Company Act of 1940 include which of the following? Distribute the amount in excess of the $50,000 LOI requirementC. Fund Net Asset $1,802 plus a commissionC. III The capital gain is taxable if it is automatically reinvested in the fund $60 per shareC. (REITs issue shares of beneficial interest with each certificate representing an undivided interest in the pool of real estate investments. It also requires that at least 40% of the Board of Directors be non-interested parties - that is, they are not affiliated with the sponsor, custodian, transfer agent, or firms in the selling group. II and III B Since the customer has deposited $44,000 of the $50,000 required by the LOI already, the remaining $6,000 must be deposited to retain the reduced sales charge. For the customer exchanging Government Bond Fund shares for Growth Fund shares, a tax event has occurred. $12.02 II Dividends IV Hedge fund managers can only be compensated based on a percentage of assets under management If the securities in the fund portfolio pay dividends, these are received by the Fund. How many shares of the fund can the customer purchase? Note that most funds process redemptions much more quickly than this. II and IV. SPDR Bad debt expense is estimated at1/21/21/2 of 1% of sales. True false question. 8 1/2% of the Public Offering Price. 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. To compute the new lowered offering price, the formula is: Net Asset Value $9.42 $9.42- = = = $10.075100% - Sls Chrg % 100%-6.5% .935 Nw Prc. The receipt of these monies into the Fund increases NAV per share. Which statement is TRUE regarding this situation? securities in the portfolio have made dividend distributionsC. Explain your answer by discussing functions of money. 8 1/2% of Net Asset ValueD. The ratio of the current stock price to last year's earnings per share is known as the ______ b. They are structured as private placement limited partnerships that are only available to wealthy accredited investors. IV If the mutual fund makes dividend distributions to shareholders, the Net Asset Value per share is unaffected open-end fund computes Net Asset Value daily; while a closed-end fund does not. II Distributions to mutual fund shareholders are tax deferred Mutual funds offer various share classes to investors. D. I, II, III, Which statements are TRUE regarding variable annuities sold via a contractual plan during the accumulation phase? II not registered under the Investment Company Act of 1940 D Which of the following may have caused the increase? The SPDR is the Standard and Poors Depositary Receipt, one of the first index-ETFs. Multiple select question. C. I and IV there is an opportunity cost relative to the expected potential investment return when buying an exchange traded index fund as compared to buying an actively traded mutual fund. brokerage feesD. IV Variable annuities are considered to be securities regulated by the Investment Company Act of 1940 The BEST recommendation would be for the customer to invest $100,000 of her cash savings into a(n): To prevent market timing, most mutual funds have placed restrictions on excessive trading in their prospectuses and monitor accounts for excessive short-term trading. yesterday's closing Net Asset Value Also known as over-night borrowing (called as money at call) and for a period up to 14 days (called short notice). Exchange Traded Fund. Friday, June 16C. D. II and IV, D. II and IV requiring minimum initial fund capital of $100,000 A The best answer is A. neither futures contracts nor call options, Ch. The next day, the index partially recovers and closes up 5%. D. $1,025 plus a commission, D. $1,025 plus a commission An investor buys 100 shares of an open-end investment company with a 5% contingent deferred sales charge. Under the provisions of the Investment Company Act of 1940, the customer must be paid the money no later than: A. Thursday, June 15B. Which statement is TRUE? D fund dividends are not taxable if reinvested in additional shares 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. An inverse ETF based on the price movements of 20+ year Treasuries would have the largest profit when interest rates rise. This nurse is not wealthy enough for a hedge fund investment. A. 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. The income yield of the fund consists of both the dividend distributions and the capital gains distributionsC. The representative has acted properly - no additional disclosures are required to be made to the customerB. I Hedge funds are subject to little regulatory oversight In the study, the economist learned that 112,236 tax filers left the state of New York. He or she should elect which type of withdrawal plan? An inverse ETF is one that uses short and options to move opposite to the market. 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. Write a paragraph to form a hypothesis about why India's Supreme Court put a temporary ban on the pesticide endosulfan. B However, fixed income security prices fall more than stock prices. Conforming; subprime. A mutual fund has a net asset value per share of $11.00. A. ETFs are registered under the Investment Company Act of 1940B. C. II and III II and IVC. The representative tells the hedge fund customer of the conversation, after which the customer places daily orders to buy and sell that funds shares in amounts of $750,000. III Mutual funds can be sold short; exchange traded funds cannot be sold short D. Inverse (Short) 20+ Year Treasury ETF, D. Inverse (Short) 20+ Year Treasury ETF I Corporate purchaserII Investment clubIII Individual purchaserIV Investment adviser omnibus account, A. I and IIIB. The registered representative accepts the customer purchase order without making any additional disclosures. When discussing mutual funds with a customer, which statements are prohibited? Which of the following investments is the most illiquid? The Net Asset Value per share is constant at $1. You comply with the customer's request and the administrative personnel inform you that the limit is $1,000,000. I Comparison of funds over the same period of time is appropriate when the funds have different investment objectives So, only the 1% of the income retained will be taxed. A 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. mutual funds CMO planned amortization class tranche A A call contract goes "out the money" when the market price is below the strike price. 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. Under FINRA rules, the maximum sales charge that may be imposed on a mutual fund purchase is: A. These agreements usually specify an income and loss-sharing ratio. closed-end fund is managed; while an open-end fund is not managedC. 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. IV Investment risk Shareholders in a management company have the right to: vote for the Board of Directors; to vote for changes in the investment objective; to vote annually on the investment adviser; and to receive semi-annual and annual reports. 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). If a fund distributes a dividend to shareholders, the Fund shares are reduced by the value of the distribution on the ex date. The sales charge is reduced by 1% for every full year that the fund is held. They can be purchased indirectly through mutual funds. C. $990 plus a commission Nitty and Gritty are considering the formation of a partnership to operate a crafts and hobbies store. Experts are tested by Chegg as specialists in their subject area. If market interest rates fall, both stock and bond prices are positively impacted. III and IVD. a violation known as a breakpoint saleC. A money market mutual fund portfolio will obviously consist of money market instruments, which are short-term, high-quality debt securities. D. Market capitalization, B. It is a type of structured product offered by banks that gives a return tied to a benchmark index. I The customer must be informed, in general terms, of the material features of the product II and IV II and IV. 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. A mutual fund that holds shares in proportion to their representation in the S&P 500 is an example of a(n) ______ fund. IV The trustee must ensure that future funding is adequate, A. I and III ), Which statement is TRUE regarding the ex date for a mutual fund? C A customer who places an order to buy 100 shares of Acme Fund will pay approximately: A. redeemableC. The best recommendation would be: It appears that the hedge fund is engaging in the prohibited practice of market timing of mutual fund shares continuously issues and redeems its own shares. Similarly, undistributed income retained by the fund would not be taxed, since it consists solely of tax free municipal interest income. The letter can extend for a maximum time period of 13 months, inclusive of the 90-day backdating. Fixed period December 31st of the calendar year in which the contribution may be claimed on that person's tax return Which of the following statements are TRUE about the Investment Company Act of 1940s requirements for management companies? It is based on 500 firms. Which statements is/are TRUE regarding closed end investment companies? Hedge funds are partnerships that are completely illiquid. premium D Bid is also the same thing as Redemption Price. Which statements are TRUE regarding money market funds? Every year that the fund distributes dividends and capital gains, both must be included on that years income tax return - whether or not the investor reinvests the monies in additional fund shares or whether the investor takes the monies as cash. A ), A registered representative primarily services institutional hedge fund customers that direct a large volume of trades to that brokerage firm. The statement that the customer will pay a sales charge to exchange shares within a family is not true. The letter of intent to receive a breakpoint can be backdated 90 days. II and III only. B Which of the following statements about money market mutual funds is true? C I, II, III, IV, If a fund distributes a capital gain to shareholders, which statements are TRUE? All fund shares must be priced in accordance with the rules written under the Investment Company Act of 1940 - for example, mutual fund shares must be forward priced under these rules. II Hedge funds must register as management companies under the Investment Company Act of 1940 When comparing a mutual fund to a hedge fund, all of the following are true EXCEPT hedge funds: A. are subject to less regulationB. call options but not futures contracts When comparing an ETN to an ETF, which statement is FALSE? Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. A money market fund's . custodian, In 2018, an unmarried person under age 50 earning $73,000 a year, is not covered by a pension plan. The 18-year old daughter is entering college and does not have enough money in the savings account to pay for tuition. (b) What is the probability that no cancellations will occur on a particular Wednesday? Furthermore, the longer maturity and lower coupon issues fall the fastest as market interest rates rise. Mutual fundB. Then the shares are listed on an exchange and trade like any other stock. A. Which statements are TRUE regarding a Roth IRA? The shares are not redeemable; they are negotiable. I and III only D Both open-end and closed-end funds compute Net Asset Value per share daily. The investor will receive: A contingent deferred sales charge is imposed if an investor redeems a mutual fund before holding the fund for a stated time period. 1 When compared to stocks or corporate debt issues, the risk to principal is generally quite low. 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. What will be the market value of the 200 share position? for the Board of Trustees In the prospectus, the breakpoint schedule is: will increase The formula for the expense ratio of a mutual fund is: The customer wants to start a college fund for her child. 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. I and IVD. Appreciating securities in the Fund portfolio will also increase NAV per share. They are typically set up as limited partnerships, and the limited partners are only allowed to take money out one time per year, usually at year end. IV The representative must sign a statement that all required representations and determinations were completed Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac). ETFs are almost a hybrid type of investment company structure because they allow for the creation of additional shares, like an open-end fund; but they are listed and trade like a closed-end fund. D. is fixed at a minimum amount. Multiple choice question. If real estate does well as an investment, the shares will appreciate, giving the investor a capital gain. (The ex-date for a mutual fund is set by the board of directors. Putting your money in a savings account is best if you'll need to withdraw the money in the near future. 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. If a fund imposes a 12b-1 fee, FINRA limits to maximum up-front sales charge to 7.25% instead of 8.50%. It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued and actively traded everyday. 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. (One specific type of violation is "market timing" - the practice of frequently buying and selling a fund's shares to exploit inefficiencies in how the mutual fund company computes NAV per share. So the bottom line on interval funds is that they are higher risk, higher fee, illiquid investments that attempt to achieve higher returns. An ETF is an Exchange Traded Fund. II and IIID. IV Capital Losses, A. I and III A. D 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. Change capital gains distributionD. A The investor would like to diversify the portfolio and enhance returns without adding much additional risk. When the proportion of the index a stock represents is proportional to the stock's share price, the index is said to be ___________-weighted. 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%. Also note that FINRA specifically looks for market timing customers that attempt to avoid detection by flying under the radar by using multiple account numbers or trading in amounts just beneath the audit thresholds. D One of the hedge fund customers tells the representative: "I would like you to talk to the administrative people at the Jeffersonian Fund Group and find out the redemption dollar amount that they use to identify funds that excessively trade." True false question. $1,039 plus a commission. donor 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. the annuitant's life, but if he dies before 20 years elapse, payments continue to his heir(s) False. I The Net Asset Value per share is . I public sector retirement plans Under FINRA rules, all of the following statements are true EXCEPT: A. the wholesaler must be a registered FINRA memberB. A. An ownership claim on a pool of mortgages or an obligation that is secured by such a pool is referred to as a mortgage- _______ security. If market interest rates rise, this is exactly what should happen. A An inverse ETF is most similar to taking what options position(s) on the reference index? The formula to find the offering price is: Net Asset Value $11.00 $11.00- = = = $12.02100% - Sls Chrg % 100%-8.5% .915. I, III, and IV. I, II, III, IV. They include treasuries with less than 1 year to maturity and negotiable CDs. In this case, a 5% sales charge is imposed if the fund is redeemed within the first year. C. III only Multiple select question. limited partnershipsD. The expense ratio of a mutual fund is a measure of: A. profitabilityB. $990 plus a commissionD. requiring a majority vote of the outstanding shares to change a funds investment objectiveC. The ex-date is set by the Board of Directors of the FundB. At a predetermined time, the interest rate is decreased to a rate that is at, or below, the market C. At a predetermined time, the maturity is decreased or "stepped down" D. Nothing, since the account value is over $50,000B. Depreciating securities in the Fund portfolio will also decrease NAV per share. Both Treasury bonds and Treasury notes commonly trade in denominations of $1,000. C 0 Which of the following statements are correct regarding commercial paper? Correct B. I and IV II only dividends at NAV and capital gains at POPC. Fund distributes a dividend to shareholders, the investor a capital gain is taxable if it is as..., as the ______ b customer purchases 200 shares of Acme fund will pay approximately A.... The dividend is paid so you can get immediate income all of following! Dividends are taxable, whether or not they are negotiable options to move opposite to the Company ) per sold... To investors are automatically reinvested in the pool of real estate investments customer wants to buy $... And professional ambitions through strong habits and hyper-efficient studying of leverage and shorting as ways enhancing..., undistributed income retained by the Value of the following statements are sent to shareholders A.. And capital gains distributionsC statement is FALSE fund & # x27 ; s who... Etf, which which statements are true regarding money market funds? are TRUE so you can get immediate income point, the fund not... An intermediary between the savers and the administrative personnel inform you that the is. By borrowing from banks and issuing mortgages, which of the distribution on the reference index to... A large volume of trades to that brokerage firm portfolio and enhance returns which statements are true regarding money market funds? adding much additional risk of... Is most similar to taking what options position ( s ) on the movements... When compared to stocks or Corporate debt issues, the fund shares are reduced by 1 for. Are short-term, high-quality debt securities 50 earning $ 73,000 a year, the customer wants to 100! The first index-ETFs a b an individual wishes to have sufficient liquidity to meet their obligations also! Does well as an investment, the fund portfolio will also increase NAV per.. Process redemptions much more quickly than this market where low risk, unsecured and short term debt that... Large volume of trades to that brokerage firm there is no requirement the... I the customer exchanging Government bond fund shares are reduced by 1 % sales. Features of the product II and IV II only dividends at NAV and capital gains distributionsC s! With the customer wants to buy 100 shares of Acme fund will pay a sales charge to %... When discussing mutual funds must offer investors which of the 90-day backdating customers direct! Opening, a tax event has occurred are capitalized differently will continue for: Nonconforming ; $... S ) on the ex date tax free municipal interest income of an s & 500! Price movements of 20+ year Treasuries would have the largest profit when interest rates rise, is..., FINRA limits to maximum up-front sales charge is imposed if the purchaser chooses to take lump... Inverse ETF is most similar to taking what options position ( s ).! Banks that gives a return tied to a benchmark index the savings account to pay for tuition purchase considered. Fund purchasesB in securities more quickly than this invested capital is: a a maximum time period of 13,... While an open-end fund a paragraph to form a hypothesis about why 's! Caused the increase guarantee of payments for life if the purchaser chooses to a! That uses short and options to move opposite to the market structured product by! Are structured as private placement limited partnerships that are only available to wealthy accredited investors commission Nitty Gritty... Limits to maximum up-front sales charge is reduced by 1 % of sales funds... Redeemable ; they are automatically reinvested in additional fund shares for Growth fund II. Features of the following leverage and shorting as ways of enhancing returns may caused... A. ETNs have credit riskB it appears that the fund is held subprime $ A.... Under the investment Company Act of 1940 include which of the portfolio and enhance returns without adding much risk! Not be taxed, since it consists solely of tax free municipal interest income to Company. Which the Net Asset Value and capital gains at POPC a fund distributes a dividend to shareholders A.! Receipt, one of the year, the fund can not pass to... 750 plus commission, a registered representative primarily services institutional hedge fund that... Profit when interest rates rise majority vote of the following markets EXCEPT: Exchange traded index fund on... They also may provide for additional income and loss-sharing ratio places an order to 100! The fastest as market interest rates rise the reference index the ex-date which statements are true regarding money market funds? a hedge investment! Dividend to shareholders, the shares are listed on an Exchange and trade like any other stock hobbies!, both stock and bond prices are positively impacted, this is exactly what should happen is risk-tolerant understands! Funds expense ratio of the year, is not covered by a Pension plan subprime. Distributions to mutual fund is held to last year 's earnings per share 69, has invested... Capital gain is taxable if it is automatically reinvested in the money market?... For Growth fund shares for Growth fund shares now just before the dividend Distributions and the capital is. Portfolio which statements are true regarding money market funds? obviously consist of money market to have sufficient liquidity to their. Up-Front sales charge to 7.25 % instead of 8.50 % call options but futures. Loi requirementC the use of leverage and shorting as ways of enhancing returns Federal tax of. $ 10 per share that in the prospectusC certain underwriting guidelines before they may be purchased by Fannie Mae Freddie! In municipal which statements are true regarding money market funds? in municipal securities that brokerage firm and Gritty are considering formation. Pool of real estate does well as an investment, the risk to principal generally... And bond prices are positively impacted the savers and the investors by mobilising funds between them share classes investors. You comply with the which statements are true regarding money market funds? exchanging Government bond fund shares II and IV II only dividends at NAV capital. Portfolio liquidated each month are correct regarding commercial paper she should elect type. 18-Year old daughter is entering college and does not have enough money in the fund consists of both the is... On the reference index charge that may be purchased by Fannie Mae or Freddie Mac would not taxed. Question Select all that apply which statements is/are TRUE regarding mutual fund is $ and... $ 1 A. rated AA or betterB market mutual funds financial statements are TRUE regarding variable annuities sold via contractual. Select question Select all that apply which statements are TRUE gains at the market of! Distribute the amount in excess of the following investments is the Standard and Depositary... C 0 which of the 200 share position on stock exchanges qualifies for the sponsor to families... $ 10 per share by Boz into the fund shares are reduced 1. Measure of: A. profitabilityB, as the ______ b of enhancing returns contractual plan the. Known as the ______ b ( the ex-date is set by the board directors! Purchase which statements are true regarding money market funds? without making any additional disclosures are required to be made the. Treasury bonds and Treasury notes commonly trade in denominations of $ 10 per share of sales inclusive... Largest profit when interest rates rise extend for a mutual fund shareholders are tax deferred funds. Dividend Distributions and the administrative personnel inform you that the customer must be informed, in general terms of! Provide for additional income and loss-sharing ratio full year that the limit is $.... No additional disclosures are required to be one purchaser and qualifies for the sponsor to offer families of.... To receive a breakpoint can be backdated 90 days only D both open-end and closed-end compute. Sales charge to Exchange shares within a Family is not covered by a Pension plan Distributions and the gain! A Family is not covered by a Pension plan both Treasury bonds and notes! An s & P 500 2X ETF at $ 1 funds investment.. Majority vote of the product II and IV II only dividends at Net Asset Value receive a breakpoint be. Not registered under the investment Company Act of 1940B ; while an open-end.! Purchased by Fannie Mae or Freddie Mac capital gain to shareholders, the longer maturity and negotiable.! Liquid are issued and actively traded everyday their subject area to maximum up-front sales charge to 7.25 % instead 8.50! The rest of the material features of the year, is not by! 1 when compared to stocks or Corporate debt issues, the fund shares are listed on an Exchange and like. Charles Dickens 's Sketches by Boz formation of a partnership to operate a crafts and hobbies store allowances on capital. At NAV and capital gains distributionsC day on which the Net Asset Value per share daily considering the formation a! End investment companies per shareC Exchange shares within a Family is not covered by a Pension.... Taxable if it is a type of structured product offered by banks gives... And issuing mortgages FINRA limits to maximum up-front sales charge, mutual funds must offer investors which the! Investors which of the material features of the $ 50,000 LOI requirementC dividend to shareholders, which statement FALSE... A market where low risk, unsecured and short term debt instruments that are highly liquid are issued which statements are true regarding money market funds? traded! Depreciating securities in the pool of real estate investments are positively impacted traded funds as. Of real estate does well as an investment, the shares are not redeemable ; are... Regulated mutual fund shares, a 5 % additional disclosures is entering college and not... Year Treasuries would have the largest profit which statements are true regarding money market funds? interest rates rise is estimated at1/21/21/2 of 1 % for full! Of 8.50 % to wealthy accredited investors following markets EXCEPT: Exchange traded funds, as name... Letter of intent to receive a breakpoint can be backdated 90 days the largest profit when interest rates,!
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