Mutual funds can carry a number of different types of sales charges and fees. Briefly explain the following such expenses. (a) a front-end load (b) a back-end load (c) a 12(b)-1 fee
What will be an ideal response?
Answer:
(a) A front-end load is a sales commission that is charged when an investor purchases a load fund. The charge can be substantial (up to 8 1/2 percent of the purchase price of the shares).
(b) A back-end load is a sales commission that is charged when an investor sells shares in a fund. The load may be as much as 7 1/4 percent, but back-end loads tend to decline each year, generally disappearing after 5 or 6 years.
(c) 12(b)-1 fees are known as hidden loads. They are assessed each year the fund is owned, regardless of the fund's investment performance. They can amount to as much as 1 percent per year.
You might also like to view...
Apart from recovering damages, and recovering profits made by the offender, successful plaintiffs in a misappropriation of a trade secret case can also ________
A) obtain the offender's trademarks or brand name as payoff B) ask for transfer of any of the offender's patents to the plaintiff C) ask to acquire the offender's trade secrets as payoff D) obtain an injunction prohibiting the offender from divulging the trade secret
Oxford Company uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. How are these costs recorded?
A. Debit Work in Process Inventory $28,900; credit Factory Wages Payable $28,900. B. Debit Payroll Expense $24,600; debit Factory Overhead $4,300; credit Factory Wages Payable $28,900. C. Debit Work in Process Inventory $24,600; credit Factory Wages Payable $28,900. D. Debit Payroll Expense $28,900; credit Cash $28,900. E. Debit Work in Process Inventory $24,600; Debit Factory Overhead $4,300; Credit Factory Wages Payable $28,900.
George borrows funds from Hometown Credit Union (HCU) to buy real property. George signs a written instrument that gives HCU an interest in the property as security for the debt's payment. This is A) a mortgage
B) a liquidation. C) a workout agreement. D) a reorganization.
A surety may not raise the defense of mistake because it is not an ordinary contract defense
Indicate whether the statement is true or false