The Type of Abusive Activity That Involves Cases Where Investors

question 3

Multiple Choice

The type of abusive activity that involves cases where investors were able to buy or sell mutual fund shares long after the price had been set each day is

• A)market timing.
• B)late trading.
• C)directed brokerage.
• D)improper fee assessment.
• E)None of these.

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Definitions:

Cash Balance

The amount of cash or cash equivalents that a company or individual has on hand at any given time.

Short-term Note

A debt instrument with a maturity of one year or less, used by businesses and governments to finance temporary needs.

Merchandise Purchases Budget

A financial plan detailing the amount to be spent on purchasing goods for resale in a future period.

Safety Stock

An additional quantity of an item held in inventory to reduce the risk of stockouts.