Stock Brokers Typically Do Not Recommend No-Load Funds Because

question 107

Multiple Choice

Stock brokers typically do not recommend no-load funds because

• A) the return is lower than on load funds and brokers want to sell only the best funds to their clients.
• B) federal law prohibits brokers from selling no-load funds.
• C) no-load funds do not pay a fee to the broker for selling them.
• D) there is no secondary market for them.

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Definitions:

Zimbardo

Refers to Philip Zimbardo, a psychologist noted for his research on social influence, including the famous Stanford prison experiment.

Simulated Prison

A psychological experiment setting designed to study the effects of perceived power, focusing on the behavior of individuals designated as prisoners and guards.

Prisoners

Individuals who are held in confinement as a result of being convicted of a crime.

Guards

Individuals tasked with the protection of a specific person, place, or object, often as part of a security force.