SIE practice questioneasyOpen-end Mutual Funds - Loads
Which share class of mutual funds usually imposes a contingent deferred sales charge (CDSC)?
- AClass C shares
- BClass A shares
- CClass B shares✓ Correct answer
- DNo-load shares
Explanation
Why C — Class B shares
Class B shares have a back-end load in the form of a CDSC if shares are redeemed early. Class A shares have front-end loads, C shares often have level loads, and no-load funds have no sales charges.
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