The Commission Charge for Purchasing Shares of a Load Fund

question 24

Multiple Choice

The commission charge for purchasing shares of a load fund that imposes an up-front commission charge can be as high as 8.5 percent.This fee:

• A)is sometimes referred to as the sales fee
• B)is paid every time investors buy (front-end load)
• C)is paid every time investors sell (back-end load)
• D)is sometimes referred to as the sales fee and is paid every time investors buy (front-end load) are correct
• E)is sometimes referred to as the sales fee, is paid every time investors buy (front-end load) and is paid every time investors sell (back-end load) are correct

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Definitions:

Marginal Cost

The incremental expense incurred when a business produces another item of its product line.

Marginal Cost

The elevation in total spending caused by the assembly of one additional unit of a product or service.

Average Cost

It refers to the total cost divided by the number of goods or services produced.

Monopolist

A sole provider of a good or service in a market, facing no direct competition, which often results in the power to set prices.