5-79 Which of the Following Is the Practice That Involves

question 76

Multiple Choice

5-79 Which of the following is the practice that involves short-term trading of mutual funds seeking to take advantage of short- term discrepancies between the price of a mutual fund's shares and out-of-date values on the securities in the fund's portfolio?

• A)Market timing.
• B)Insider trading.
• C)Late trading.
• D)Directed brokerage.
• E)Spinning.

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Definitions:

Partial Equity Method

An accounting method used when an investing entity has significant influence but not full control over the investee, involving recording investments at cost and adjusting for the investor’s share of periodic net income or loss of the investee.

Dividends Received

Income received by investors, typically shareholders of a corporation, from the profits of the company.

Investee

A company in which another entity has invested, granting the investor a level of influence or control over its operations.

Related Expense

Costs that are directly connected to or a result of a specific business activity or operation.