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23 Cards in this Set

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