A mutual fund has a maximum front-end sales load of 8.5%. To be permitted to charge this maximum rate under FINRA rules, the fund MUST offer which of the following?

A mutual fund has a maximum front-end sales

Multiple choice — select the best answer

ABreakpoints, rights of accumulation, and reinvestment of dividends at NAV
BA 12b-1 fee capped at 0.25% and automatic dividend reinvestment
CBreakpoints only, with no reinvestment privilege required
DA no-load option for purchases over $100,000 with rights of accumulation

✓ Correct answer: A. Breakpoints, rights of accumulation, and reinvestment of dividends at NAV FINRA rules allow the 8.5% maximum front-end load only when the fund offers quantity discounts (breakpoints), rights of accumulation, and the right to reinvest dividends at NAV without an additional sales charge.

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Topic: Series 6 (Investment Products)

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A mutual fund has a maximum front-end sales load of 8.5%. To be permitted to charge this maximum rate under FINRA rules, the fund MUST offer which of the following?

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