Finra Exam Series-6 Topic 4 Question 48 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 48
Topic #: 4

Which of the following statements regarding the ''rights of accumulation'' is true?

AAll mutual funds that have front-end loads are required to allow their shareholders rights of accumulation.

BReinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation.

CA breakpoint must be reached within a 13-month period, at which point the accumulation period begins anew.

DA letter of intent must be signed to activate the rights of accumulation.

Show Suggested Answer

Suggested Answer: B

The true statement is that reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation. The rights of accumulation are not something that all mutual funds with front-end loads must offer. There is no time limit on the accumulation period. The rights of accumulation and the letter of intent are two separate animals; neither has anything to do with the other.

by Janey at Sep 19, 2022, 09:21 PM

Limited Time Offer

25%

Off

Get Premium Series-6 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!