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Finra Series-6 Exam - Topic 1 Question 119 Discussion

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:
D) 3.25%.
A) 2.00%.
B) 4.25%.
C) 4.75%.

Finra Series-6 Exam - Topic 1 Question 119 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 119
Topic #: 1
[All Series-6 Questions]

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:

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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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Wai
2 days ago
Definitely 3.25%. Simple math!
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Gilma
7 days ago
I’m not sure about that. 4.75% sounds too high.
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Emmett
12 days ago
Wait, how does the 12b-1 fee factor into this?
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Brunilda
17 days ago
I think it’s 4.25%. Seems right to me!
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Wade
23 days ago
The front-end load is 5%, so that affects the rear-end load limit.
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Lawrence
28 days ago
How can a fund have a rear-end load if it already has a front-end load? Sounds off.
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Chana
1 month ago
I’m leaning towards 3.25%. Makes sense to me!
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Delmy
1 month ago
Wait, are we sure about the 12b-1 fee? Seems low.
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Olene
1 month ago
I think it’s definitely 4.25%.
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Marsha
2 months ago
The front-end load is 5%, so that affects the rear-end load limit.
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Desmond
2 months 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
2 months 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
2 months 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
2 months 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.
upvoted 0 times
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