Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

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Which of the following funds can an agent indicate is “no load?”
  1. a fund with no front-end or back-end load that has 12b-1 fees equal to 0.30% of the average net assets of the fund.
  2. a fund with no front-end load that has 12b-1 fees equal to 0.10% of the average net assets of the fund and a rear-end load that varies depending on how long the investor has held the shares.
  3. a fund with no front-end or back-end load that has 12b-1 fees equal to 0.25% of the average net assets of the fund.
  4. Both A and C can be advertised as “no load” funds.
Explanation
Answer: C - A fund with no front-end or back-end load that has 12b-1 fees equal to 0.25% or less of the average net assets of the fund is considered a no load fund. In Choice A, the 12b-1 fees exceed 0.25%, and in Choice B, there is a rear-end load.
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