A Mutual Fund with a Back-End Load

question 21

Multiple Choice

A Mutual Fund with a back-end load

• A) charges only when you purchase the shares.
• B) cannot have a front-end load.
• C) will assess no annual management fees.
• D) pays you the NAV when you sell.

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Definitions:

Financial Obligation

A legal responsibility to settle a debt or pay for a service or product that has been received.

Registered Securities

Securities with which the issuer or a transfer agent keeps a list of the names of owners. Dividends or interest payments are made to owners of record as of specified dates.

Transfer Agent

A financial institution or trust company designated by a corporation to keep records of investors, account balances, and transactions, and manage the transfer of stocks and bonds.

Negative Return

A loss that occurs when the value of an investment decreases compared to its initial purchase price.