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18 Cards in this Set
- Front
- Back
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The people who establish investment policy and select and oversee the Investment adviser, custodian and transfer agent. Also establish dividends and capital gains.
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Board of Directors
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A _________ (_______ _______)
is hired by the Board to manage the mutual fund |
Manager (Investment Adviser)
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The ______________ _______ markets the shares to the public.
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Principle Underwriter
(Distributor or Sponsor) |
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Underwriter Marketing Style:
Three ways of maketing a fund |
-Own Sales Force
-Through broker dealers -Through Plan company |
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Some funds do not use underwriters. This would be a ___-________ fund.
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NO-Load fund
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Load tacked onto the fund to cover costs is a.
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12b-1
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The entity that is charge of holding the portfolio securities in safekeeping and handles the clerical functions of the fund.
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Custodian Bank
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The entity in charge of issuance of shares or book entry, cancellation of redeemed shares and disbursement of dividends and capital gains to shareholders is the.
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Transfer Agent
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A reduction in sales charges for quantity purchases within the fund "family".
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Breakpoints
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When an investor intends to purchase a said amount of securities with a 13 month period they may qualify for breakpoints with this document.
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(LOI)
Letter of Intent |
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If one makes an investment which reaches a breakpoint, one will receive the breakpoint on that investment, not just on the amount that exceeds the breakpoint. Valuation method- amout invested or current value, whichever is greater... not time limit
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Right of Accumulation
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This calculation gives the...
Ask minus bid divided by ask price(Max sale charge is 8 1/2% of ask price) |
Sales charge percentage
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NAV divided by 100% minus sales charge percentage.
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Ask Price
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NAV (bid) times number of shares redeemed (minus a redemption fee, if any)
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Redemption Proceeds
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Investing a fixed sum over a period of time and having the price fluctiate, will result in lower cost per share but does not assure profits. This is know as.
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Dollar-cost-averaging
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inducing a purchase just before a distribution is paid is not allowed and is called.
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Selling dividends
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Inducing a purchase just below a breakpoint is prohibited and is called..
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Breakpoint sales violation
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Classes of Mutual fund shares
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Class A - front end load
Class B - Back end load |
