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Finra Series-6 Exam - Topic 6 Question 23 Discussion

Which of the following statements regarding the ''rights of accumulation'' is true?
B) Reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation.
A) All mutual funds that have front-end loads are required to allow their shareholders rights of accumulation.
C) A breakpoint must be reached within a 13-month period, at which point the accumulation period begins anew.
D) A letter of intent must be signed to activate the rights of accumulation.

Finra Series-6 Exam - Topic 6 Question 23 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 23
Topic #: 6
[All Series-6 Questions]

Which of the following statements regarding the ''rights of accumulation'' 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 Antione at May 03, 2022, 10:24 AM

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Jenise
10 months ago
Just to clarify, breakpoints are important for reducing fees!
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Jospeh
10 months ago
Really? A letter of intent for rights of accumulation? That’s new to me.
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Xenia
11 months ago
C sounds right, but 13 months seems short!
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Dorothy
11 months ago
I thought A was correct, but I guess not.
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Lenna
11 months ago
B is true! Reinvested dividends do count.
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Odette
11 months ago
I practiced a question similar to this, and I believe option A is misleading because not all funds with front-end loads have to offer rights of accumulation.
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Luis
11 months ago
I'm not entirely sure, but I feel like option C might be correct since I recall something about a specific time frame for breakpoints.
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Nida
11 months ago
I think option B sounds familiar because I remember something about reinvested dividends counting towards breakpoints in practice questions.
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Levi
11 months ago
I remember discussing letters of intent, but I’m uncertain if they are necessary for rights of accumulation. I might lean towards option D, though.
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Vi
11 months ago
Hmm, I'm a bit confused about the options. Do we need to use both SageMaker and Amazon Forecast? I'm not sure which combination of steps is the best solution.
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Craig
11 months ago
Okay, let me think this through. The passage is about the Wright brothers and their interest in flight, so the answer is likely related to that. I'll go with B, "plan".
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