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Finra Exam Series-6 Topic 2 Question 33 Discussion
Topic #: 2
A load mutual fund offers reduced load charges when an investor invests over $25,000 in the fund.
Which of the following can combine their funds in order to meet that breakpoint and get the reduced sales charge?
i. Mr. and Mrs. Smith
ii. Mrs. Smith and her 8-year-old daughter, Susie
iii. Mr. Smith and his brother, Darwin
IV. The Smithereen Investment Club, of which Mr. and Mrs. Smith are co-chairpersons
Only Mr. and Mrs. Smith and Mrs. Smith and her 8-year-old daughter, Susie, can combine their funds in order to meet the breakpoint and get the reduced sales charge. Investments made by a husband and a wife and by a parent on their own account and on a custodial account for a minor child can be combined toward the total needed to reach the breakpoint. (The child cannot be an adult, however.) Investments made by siblings and investment clubs cannot be combined to meet a breakpoint.
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