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Finra Exam Series-6 Topic 7 Question 49 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 49
Topic #: 7
[All Series-6 Questions]

The MaxFee Mutual Fund has a front-end load of 8.5%. If its net asset value (NAV) per share is currently $32, for what price can an investor buy shares of the fund? (Round your answer to the nearest cent.)

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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 Malcolm at Oct 11, 2022, 04:58 PM

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Valda
4 days ago
Hmm, let's see... If the NAV is $32 and the front-end load is 8.5%, then the price an investor would pay should be $34.97. I'm going with B).
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Geraldo
8 days ago
Wow, this question is really testing our math skills! I'm gonna go with C) $34.72, that's gotta be the right answer.
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Floyd
9 days ago
But the front-end load is subtracted from the NAV, so the price to buy shares would be lower than the NAV.
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Annelle
11 days ago
I disagree, I believe the correct answer is C) $34.72.
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Floyd
17 days ago
I think the answer is A) $29.49.
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