One of the Recent Trading Abuses in the Mutual Fund

question 17

Multiple Choice

One of the recent trading abuses in the mutual fund industry was allowing selected investors to rapidly trade in and out of a mutual fund in order to profit on stale prices. This practice is called

• A)diluted brokerage.
• B)front running.
• C)directed order flow.
• D)soft dollar commissions.
• E)market timing.

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Definitions:

Height

The distance from the base of something to its top.

Predicted Vital Capacity

An estimated measurement of the maximum amount of air a person can expel from the lungs after a maximum inhalation.

Height

The measurement of someone or something from head to foot or from base to top.

Breathing Rate

The number of breaths taken within a set amount of time, an important aspect of respiratory health.