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SEC 2.1

RegalPolonium avatar
By RegalPolonium



3 Questions

  1. Open-end investment companies under the Investment Company Act of 1940 are required to redeem shares A. within 45 days of purchase, refunding the original purchase price in full to the purchaser. B. within two days after the tender of the shares to the company or its designated agent. C. at an amount equal to the most recently computed NAV. D. at an amount equal to the next calculated NAV.

  1. Your customer is interested in a growth fund that offers A shares and B shares. Не would like to know the differences between them. Which of the following statements could you not make? A. B shares typically convert to A shares after five to seven years. B. B shares are purchased at NAV. C. A shares typically convert to B shares after five to seven years. D. A shares are suited to large volume, long-term investments.

  1. An investor has requested a withdrawal plan from her mutual fund and currently receives $600 per month. This is an example of which type of plan? A. Contractual B. Fixed-share periodic withdrawal C. Fixed-dollar periodic withdrawal D. Fixed-percentage withdrawal


Test your knowledge on the requirements for redemption of shares under the Investment Company Act of 1940. Determine which option correctly states the redemption process for open-end investment companies.

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