SIE practice questionhardMutual Funds
A mutual fund may suspend redemptions under which circumstance?
- AAn emergency as determined by the SEC✓ Correct answer
- BA poor investment performance year
- CInvestor requests
- DLow daily trading volume
Explanation
Why A — An emergency as determined by the SEC
The SEC may authorize suspension of redemptions during emergencies. Poor performance, investor requests, or low trading volume do not justify suspension.
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