Class C Shares of a Mutual Fund Usually Convert to Class

question 90

True/False

Class C shares of a mutual fund usually convert to Class A shares after some length of time which may be as long as 6 to 8 years.

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Definitions:

Hybrid Security

A hybrid security is a financial instrument combining elements of both debt and equity, offering benefits and risks of both types.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Dividend Per Share

The total dividends declared by a company for each outstanding share of common stock.

Expected Return

The weighted average of all possible returns for a given investment, factoring in the probabilities of each outcome, used as a tool for evaluating investments.