Finra Exam Series-6 Topic 5 Question 21 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 21
Topic #: 5

When a mutual fund is valuing your pre-existing holdings to see if you qualify for a reduced sales charge under its rights of accumulation program, it must use:

Athe current NAV of your holdings.

Bthe current public offering price (POP) of your holdings.

Cthe price you paid when you purchased the shares originally.

Dnone of the above.

Show Suggested Answer

Suggested Answer: D

When a mutual fund is valuing your pre-existing holdings to see if you qualify for a reduced sales charge under its rights of accumulation program, it is not required to use any specific one of the specified choices. It is allowed to choose from among them. Some funds even allow you to use the higher of either the current NAV or POP or the historical NAV or POP, since the historical value might be higher than the current value in a down market.

by Brock at May 04, 2022, 01:25 AM

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