Series 7 practice questionmediumPackaged Products — Mutual Funds
What is the maximum sales charge permitted under FINRA rules for mutual fund purchases?
- A5.00%
- B5.75%
- C8.50%✓ Correct answer
- D10.00%
Explanation
Why C — 8.50%
Under FINRA rules, the maximum sales charge on a mutual fund purchase is 8.5% of the public offering price. However, if a fund does not offer breakpoint discounts, rights of accumulation, or reinvestment of dividends at NAV, the maximum allowable sales charge is reduced accordingly.
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