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 is correct; a breakpoint is a reduced sales charge for large mutual fund purchases. B allows investors to get breakpoints for future purchases. C is a signed statement to reach a breakpoint in the future. D is not a mutual fund industry term.
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