The Sales Charge for Purchasing Shares in a Load Fund

question 73

Multiple Choice

The sales charge for purchasing shares in a load fund is ________ percent of the purchase price.

• A)an average of 0.50 to 1
• B)an average of 1 to 2
• C)an average of 2 to 4
• D)an average of 5 to 9 1/2
• E)as high as 8 1/2

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Definitions:

EPS

Earnings Per Share; an indicator of a company's profitability, calculated as the company's net income divided by the number of its outstanding shares.

Capital Restructuring

Changing a firm’s capital structure intentionally by buying and selling stocks and bonds simultaneously.

Leverage

Leveraging borrowed money to enhance the expected gains from an investment.

Financial Risk

The chance of experiencing financial loss from an investment or enterprise because of different economic elements.