SIE practice questionmediumHedge Funds
Which investor is generally eligible to purchase hedge funds?
- AAny individual who purchases through a broker
- BAccredited or qualified investors meeting minimum wealth criteria✓ Correct answer
- CAll employees of the Investment Company Institute
- DOnly government employees
Explanation
Why B — Accredited or qualified investors meeting minimum wealth criteria
Hedge funds are generally offered only to accredited or qualified investors who meet wealth, income, or sophistication standards. They are not open to any retail investor through ordinary brokerage purchase.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Investment Companies & Packaged Products questions
- A unique tax advantage of ETFs over open-end mutual funds is that ETFs:
- The price that an investor pays for a closed-end fund share is usually:
- A disadvantage of UITs compared to mutual funds is that UITs:
- Class C mutual fund shares are typically most appropriate for:
- If a REIT distributes less than 90% of its taxable income to shareholders, the REIT:
- A mortgage REIT primarily earns income from:
- A client plans to invest $25,000 in a mutual fund and wants to maximize long-term returns while minimizing ongoing…
- An investor in a UIT can expect which of the following at termination?