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:

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Consolidated Income Tax Return

A single income tax return filed by a parent company and its subsidiaries, considered as one entity for tax purposes.

Intra-entity Transfers

Transfers of goods, services, or assets between divisions or units within the same company.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.