Which of the Following Statements Is Incorrect

question 85

Multiple Choice

Which of the following statements is incorrect?

• A) Investors can purchase shares directly from an open-end fund at any time.
• B) The number of shares of an open-end fund is always changing.
• C) Open-end funds typically maintain some cash on hand in case investments exceed redemptions.
• D) There are many different categories of open-end mutual funds.

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Definitions:

UCC

The Uniform Commercial Code is an extensive collection of statutes that regulates commercial dealings in the United States, covering areas such as sales, negotiable instruments, and secured transactions.

Risk

A potential loss.

Perfect Tender Rule

This rule allows buyers to reject goods that do not precisely meet the quality, quantity, and delivery terms specified in the contract.

Minor Flaws

Small defects or imperfections that do not significantly affect the overall functionality or value of an item.