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23 Cards in this Set
- Front
- Back
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Name three ways to evaluate and compare mutual funds.
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1. investment objectives
2. statistical measaures of portfolio 3. non-statistical factors (family of funds) |
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SAying that a conversion is a taxable event means what?
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It creates tax consequences for the investor
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What is a load in a mutual fund?
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sales charge
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How does a no load mutual fund pay for its cost?
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charges expenses against it gross investment income as operating expenses.
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A percentage fee charged to no-load funds at the time the investor redeems his shares is called? another fee you can find is called?
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redemption-fee
12b-1 |
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Shares that always have a load on the purchase, but no redemption fee are called?
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Class A
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Shares that never have a load on the purchase but have a conditional deferred sales load charge(back end load) are called
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Class B
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When a Class B share no longer has redemption charge it becomes what?
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Class A
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Shares that have no acquisition load but the redemption charge runs out in 1 year, it also can never be a Class A Share is called
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Class C
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The Investment Company Act of 1940 created what three types of investment companies?
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1. Face amount Certificates Co.
2. Unit Investment Trusts 3. Management Companies |
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Name two types of Management companies.
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1. Closed-end
2. Open-end |
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An investment company directed by a body of trustees rather than a board of directors and able to issue only redeemable securities, each of which represents an undivided participation in a unit of specified securities is called
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Unit Investment Trust
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What management company makes a one time offering of its shares to the public, which are not redeemable shares called
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closed-end investment company
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What management company makes a continuous offering of its shares to the investing public, which are redeemable shares is called, also known as
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open-ended investment company
mutual funds |
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The Investment Act of 1940 require that a mutual fund pay on redeemed shares in how many days?
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7 days
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Any person directly or indirectly owning, controlling, or holding 5% of the outstanding voting securities of a company and any officer, director, partner, or employee in a position to influence decisions is called
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Affiliated person
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What is defined as a company that is engaged primarily in the business of investing, reinvesting or trading in securities is called
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investment company
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An investment company which issues face-amount certificates on the installment plan 24 MONTHS AFTER ISSUE DATE are called
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face amount certificate company
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Another sub-classification of management companies is called
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diversifies and nondiversified
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What requirements must a diversified company meet?
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75% of the value of assets can not be invested:
no greater than 5% of total assets not more than 10% of outstanding voting rights The other 25% can be invested in any fashion |
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This permits no-load funds to pay commisions to broker/dealers who sell fund shares is called
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Rule 12b-1
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No registered investment company may make a public offering of securities unless it has a net worth of at least what amount?
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$100,000
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The penalty for larceny and embezzlement is
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maximum $10,000,
imprisonment for up to 5 years or both |
