Describe the Difference Between Positive Sanctions and Negative Sanctions

question 55

Essay

Describe the difference between positive sanctions and negative sanctions.

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Definitions:

Diversified

The strategy of spreading investments across various financial assets to reduce risk and increase the potential for return.

Open-end Investment Companies

Mutual funds that continuously issue new shares or redeem existing shares at the net asset value.

Mutual Funds

Funds that aggregate capital from numerous investors to acquire a varied collection of shares, bonds, or alternative financial instruments.

12b-1 Fee

A fee found in the expense ratio of some mutual funds, meant to cover marketing, distribution, and other costs.