Finra Series-6 Exam - Topic 1 Question 119 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 119
Topic #: 1

The MaxCharge fund has a 5% front-end load and a 12b-1 fee that is 0.25% of its average net assets. Under these conditions, any rear-end load, it may have, is limited to:

A2.00%.

B4.25%.

C4.75%.

D3.25%.

Show Suggested Answer

Suggested Answer: D

Since the MaxCharge fund has a 5% front-end load and a 12b -1 fee that is 0.25% of its average net assets, any rear-end load, it may have, is limited to 3.25%. The maximum sales charge that is allowed is 8.5%, and this includes the front-end load, rear-end load, and 12b-1 fee. Since MaxCharge has a front-end load and a 12b-1 fee that totals 5.25%, its rear-end load is limited to 8.5% - 5.25% = 3.25%.

by Latosha at Jun 29, 2026, 02:47 AM

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Desmond

2 hours ago

I thought the limit was related to the total fees, but I’m confused about how the front-end load affects the rear-end load.

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Virgilio

5 days ago

I feel like the answer might be 3.25%, but I can't recall the exact formula we used in class.

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Pearly

10 days ago

I think I practiced a similar question where we had to find the maximum rear-end load based on other fees. Could it be 4.25%?

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Viva

16 days ago

I remember something about the total of front-end loads and 12b-1 fees needing to stay under a certain limit, but I'm not sure how to calculate it exactly.

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