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Finra Series-6 Exam - Topic 5 Question 21 Discussion

When a mutual fund is valuing your pre-existing holdings to see if you qualify for a reduced sales charge under its rights of accumulation program, it must use:
D) none of the above.
A) the current NAV of your holdings.
B) the current public offering price (POP) of your holdings.
C) the price you paid when you purchased the shares originally.

Finra Series-6 Exam - Topic 5 Question 21 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 21
Topic #: 5
[All Series-6 Questions]

When a mutual fund is valuing your pre-existing holdings to see if you qualify for a reduced sales charge under its rights of accumulation program, it must use:

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Suggested Answer: D

When a mutual fund is valuing your pre-existing holdings to see if you qualify for a reduced sales charge under its rights of accumulation program, it is not required to use any specific one of the specified choices. It is allowed to choose from among them. Some funds even allow you to use the higher of either the current NAV or POP or the historical NAV or POP, since the historical value might be higher than the current value in a down market.


by Brock at May 04, 2022, 01:25 AM

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Veronique
9 months ago
Really? I’m surprised it’s not based on what you paid originally.
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Pearly
10 months ago
Current NAV makes the most sense for valuation.
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Arthur
10 months ago
No way, they use the original purchase price? That seems off.
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Earleen
10 months ago
I thought it was the POP, but I guess not.
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Krystal
10 months ago
It's definitely the current NAV that counts!
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Emiko
10 months ago
I’m not confident, but I think it’s definitely not the price I originally paid. That seems too outdated for this kind of calculation.
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Karl
11 months ago
I’m leaning towards the current NAV too, but I keep second-guessing myself. The rights of accumulation can be tricky!
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Gerald
11 months ago
I feel like we practiced a question similar to this in class. I want to say it’s the public offering price, but I could be mixing it up.
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Kimi
11 months ago
I think it might be the current NAV, but I'm not entirely sure. I remember something about how mutual funds calculate values for sales charges.
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Erick
11 months ago
I think the unified test dashboard is the way to go. That would help ensure consistency and visibility across the teams, which could cut down on duplicated effort. The other options all seem to point to potential problems with distributed testing.
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Natalie
11 months ago
Ah, I know this one! The server admin is using an out-of-band management connection to access the misconfigured server. That's the only way they could still configure the server remotely when the network interfaces are down.
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Marcelle
11 months ago
I'm leaning towards B as well. Switching to asynchronous mode should take some of the load off the devices with high CPU utilization.
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