Back-End Loads

question 48

Multiple Choice

Back-end loads

• A) are charged when an investor buys their mutual fund shares.
• B) are charged if an investor sells his or her shares within the first few years.
• C) were designed to help no-load funds cover their marketing expenses.
• D) encourage short-term trading.

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Definitions:

Raw Materials

The basic materials from which products are made, typically not yet processed or used in manufacturing.

Finished Products

Goods that have completed the manufacturing process but have not yet been sold or distributed to end customers.

Labor Costs

The total expenditure incurred by employers to compensate employees, including wages, salaries, benefits, and taxes.

Contracted Labor

Work performed by individuals or companies who are not employees but are hired on a contract basis.