SIE practice questioneasyBreakpoints
An investor making a large purchase in a mutual fund receives a reduced sales charge. This benefit is known as:
- ALetter of Intent
- BRights of Accumulation
- CBreakpoint✓ Correct answer
- DExpense Ratio Reduction
Explanation
Why C — Breakpoint
A breakpoint is the reduced sales charge available at specified mutual fund purchase levels. A letter of intent and rights of accumulation are ways investors may qualify for breakpoints.
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