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Finra Series-6 Exam - Topic 2 Question 30 Discussion

Which of the following statements regarding the purchase and redemption of mutual fund shares is false?
C) When an investor redeems his shares, the mutual fund must pay for the shares within 7 business days.
A) Mutual fund shares may not be purchased on margin.
B) An investor can both purchase and sell fractional shares of mutual funds.
D) If an investor places an order to buy or redeem shares of a mutual fund before 4 P.M.EST on a day when the markets are open, the price will be based on the fund's net asset value (NAV), as calculated at the end of that trading day.

Finra Series-6 Exam - Topic 2 Question 30 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 30
Topic #: 2
[All Series-6 Questions]

Which of the following statements regarding the purchase and redemption of mutual fund shares is false?

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Suggested Answer: C

The false statement regarding the purchase and redemption of mutual fund share is that when an investor redeems his shares, the mutual fund must pay for the shares within 7 business days. The mutual fund must pay for the shares within 7 calendar days. All the other statements are true.


by Tiera at May 03, 2022, 07:04 AM

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Evelynn
10 months ago
D sounds accurate, NAV is calculated at the end of the day.
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Hoa
10 months ago
B is right, fractional shares are a thing now.
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Josphine
11 months ago
Wait, are you sure about C? I thought it was longer than 7 days.
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Winifred
11 months ago
Totally agree, A is correct!
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Val
11 months ago
A is true, you can't buy mutual fund shares on margin.
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Holley
11 months ago
I have a vague memory that fractional shares are allowed, so option B could be true too. This is tricky!
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Toshia
11 months ago
I'm not entirely sure, but I feel like option C might be the false one. I thought the redemption period was longer than 7 days.
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Felton
11 months ago
I think option A is true because I remember that mutual fund shares can't be bought on margin.
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Loreen
11 months ago
I recall a practice question about NAV and trading times, so I think option D is correct.
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Rosamond
11 months ago
Okay, I think I've got it. For Gold-tier members, the key is whether the total purchase value is above or below $200. I'll need to consider the different point values for each scenario.
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Mary
11 months ago
I'm pretty confident that focusing the camera doesn't have a direct effect on the frame rate or bandwidth. It's more likely to impact the pixel resolution or image quality.
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Jose
11 months ago
Okay, let me think this through step-by-step. The question is asking about who makes the decision to add new medications to a hospital's formulary. Drug company reps (A) wouldn't be making that decision, and the hospital general manager (D) doesn't seem right either. That leaves B - the Board of Physicians, or C - the Pharmacy and Therapeutics Committee. I'm leaning towards C since that committee is specifically tasked with evaluating and approving new medications.
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