Soft Dollars Is a Term Often Used in Reference to the Portion

question 95

Multiple Choice

Soft dollars is a term often used in reference to the portion of a fee or commission that is allocated to

• A)research and other advisory services.
• B)custody and escrow services.
• C)clearance and settlement services.
• D)banking services.
• E)back office services.

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Definitions:

Loan Principal

The amount of money that is borrowed and must be repaid, excluding any interest or additional fees.

Corporate Bond Interest

The income investors receive as payment for lending money by purchasing bonds issued by a corporation.

Tax Purposes

Considerations or actions taken with regard to taxation, such as reporting income, deductions, and credits.

Bonds Redeemed Early

The process by which an issuer repays the principal amount of bonds before their maturity date.