Practice Quiz

FINRA Series 6

Category - Series 6

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When a mutual fund is valuing your pre-existing holdings to see if you qualify for a reduced sales charge under its rights of accumulation program, it must use:
  1. the current NAV of your holdings.
  2. the current public offering price (POP) of your holdings.
  3. the price you paid when you purchased the shares originally.
  4. none of the above.
Explanation
Answer: D - When a mutual fund is valuing your pre-existing holdings to see if you qualify for a reduced sales charge under its rights of accumulation program, it is not required to use any specific one of the specified choices. It is allowed to choose from among them. Some funds even allow you to use the higher of either the current NAV or POP or the historical NAV or POP, since the historical value might be higher than the current value in a down market.
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