The Conversion Privilege Allows Investors to Switch from One Fund

question 11

True/False

The conversion privilege allows investors to switch from one fund to another without fees if and only if the funds are managed by the same company such as Fidelity or Vanguard.

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Definitions:

Emancipated

Refers to a minor who has been legally freed from control by their parents or guardians, obtaining adult rights and responsibilities.

Legal Capacity

The ability of an individual or entity to enter into legally binding contracts, subject to age, mental competency, and other legal qualifications.

Superior Bargaining Power

A situation where one party in a negotiation or contractual relationship has significantly more influence, resources, or information, potentially leading to an imbalance in the terms agreed upon.

Minor's Right

Minor's Right refers to the legal protections and entitlements specifically granted to individuals under the age of legal majority, often including protections in contracts and employment.