When the Offering Price and the NAV Are the Same

question 5

Multiple Choice

When the offering price and the NAV are the same, you know that a mutual fund is not charging which one of the following fees?

• A)12b-1 fee
• B)front-end load
• C)management fee
• D)contingent deferred sales charge
• E)trading costs

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Definitions:

Transactions

Acts of buying or selling goods, services, or financial instruments.

Invests

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Note Payable

A written promise to pay a specified amount of money, along with interest, by a certain date.

Cash Payment

A transaction in which money is paid out or disbursed immediately in cash.