At Issue, Offering Prices of Open-End Funds Will Often Be

question 71

Multiple Choice

At issue, offering prices of open-end funds will often be

• A)less than NAV due to loads and commissions.
• B)greater than NAV due to loads and commissions.
• C)less than NAV due to limited demand.
• D)greater than NAV due to excess demand.
• E)less than or greater than NAV with no apparent pattern.

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Definitions:

Employee Retirement Income Security Act

A federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.

Vesting Rights

Are guaranteed rights to receive pension benefits.

Pension Plans

Retirement savings plans offered by employers, providing employees with a specific monthly income upon retirement.

Pay-for-Knowledge Approach

A compensation strategy where employees are paid based on their skill sets and the knowledge they bring to the job.