SIE practice questioneasyFront-End/Back-End Loads
An investor purchases Class A shares of a mutual fund. Which of the following costs will most likely apply at the time of purchase?
- AContingent deferred sales charge
- BBack-end sales load
- CFront-end sales load✓ Correct answer
- DRedemption fee
Explanation
Why C — Front-end sales load
Class A mutual fund shares typically charge a front-end sales load at purchase. Deferred or back-end sales charges are associated with other share classes, and redemption fees are not the standard Class A purchase charge.
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