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Finra Exam Series-6 Topic 1 Question 47 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 47
Topic #: 1
[All Series-6 Questions]

Which of the following statements about hedge funds is true?

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Suggested Answer: B

The true statement is that reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation. The rights of accumulation are not something that all mutual funds with front-end loads must offer. There is no time limit on the accumulation period. The rights of accumulation and the letter of intent are two separate animals; neither has anything to do with the other.


by Hoa at Aug 24, 2022, 11:51 PM

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Sena
2 days ago
Option C is definitely not true. Hedge funds are known for their lack of liquidity compared to other investments.
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Miesha
8 days ago
I'm not sure about the 'low risk' part in option A. Hedge funds can actually be quite risky, depending on the investment strategies they use.
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Jin
8 days ago
But hedge funds are known for their high management fees, so I still think A is correct.
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Chauncey
9 days ago
Option B seems to be the correct answer. Hedge funds are not regulated by the Investment Company Act of 1940, unlike mutual funds.
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Zita
10 days ago
I disagree, I believe the answer is B.
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Jin
15 days ago
I think the answer is A.
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