Under SEC Rules, the Managers of Certain Funds Are Allowed

question 34

Multiple Choice

Under SEC rules, the managers of certain funds are allowed to deduct charges for advertising, brokerage commissions, and other sales expenses directly from the fund assets rather than billing investors. These fees are known as ________.

• A) direct operating expenses
• B) back-end loads
• C) 12b-1 charges
• D) front-end loads

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Definitions:

Age Range

a category of people of a similar age used for statistical, developmental, or marketing purposes.

Genetically Determined Nature

The aspects of an organism's physical and behavioral traits that are encoded in its DNA and inherited from its parents.

Nurture

The influence of environmental factors on an individual's development, including upbringing, culture, and life experiences.

Genetic Makeup

The unique combination of genes inherited from both parents that determines the characteristics of an individual organism.