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FINRA Series 6

Category - Series 6

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Which of the following is a characteristic of a mutual fund?

shares may sell below net asset value
shares are bought and sold through the fund
shares are sold on exchange floors
the fund has a fixed number of shares that can be sold

Explanation

Answer: B - Mutual fund shares are bought and sold through the fund itself. The shares will sell for at least net asset value, unlike shares of a closed-end investment company wherein prices are set by supply and demand forces. Mutual funds are open-end investment companies and have no fixed number of shares.

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FINRA Series 6

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FINRA Series 6

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