Q:
In which of the following ways can investor qualify for a breakpoint?
I. Signing a Letter of Intent to reach a breakpoint in the next 13 months
II. Invest a large sum of money that reaches a breakpoint level
III. The right of accumulation, where a new purchase is added to the shares already owned
IV. The outstanding shares are closed and all sales charges are waived
a) II and III only
b) I, II, III, and IV
c) I, II, and III
d) I and II only
A:
The correct answer is c):
A breakpoint allows an investor to qualify for a reduced sales charge based on the purchase size of an investment. There are three ways to qualify for breakpoints, they include: signing a letter of intent, investing a large sum of money, and the right of accumulation.

MORE FAQS

  1. If a sales representative moves from one broker-dealer to another ...

  2. Which of the following are tools that are employed by the Federal Reserve in its efforts to control the money supply?

  3. Which statements about common shareholder rights are FALSE? I. A shareholder may exchange shares to ...

  4. Which of the following are not types of open-end management investment companies ...

  5. Which of the following signatures are required on a client’s new account form ...

  6. Which TWO statements are TRUE about writing covered calls? I ...

  7. Which of the following statements is (are) true with respect to setting the proper constraints in managing ...

  8. Under the Telephone Consumer Act of 1991, a telemarketer must provide which of the following to a called ...

  9. What are the best ways to lower my investing fees?

  10. Which of the following statements is (are) true with respect to the calculation of returns of composites ...

  11. Under the Uniform Securities Act, which of the following are defined as securities ...

  12. Under the Uniform Securities Act, registration with the Administrator as an investment adviser is required ...

  13. A margin account has a long market value of $12,000, a debit balance of -$6,000 ...

  14. Which of the following statements is (are) true with respect to the factors that a manager must take ...

  15. Which of the following statements is(are) true with respect to the factors that a manager must take ...

  16. How does Warren Buffett choose the companies he buys?

  17. How can I make my home run on energy that is 100% off the grid?

  18. Are student loans dischargeable after bankruptcy?

  19. Can real interest rates be negative?

  20. What are the maximum Social Security disability benefits?

RELATED FAQS

  1. If a sales representative moves from one broker-dealer to another ...

    The correct answer is b. I, II and III are correct since all parties are required to notify the Administrator.
  2. Which of the following are tools that are employed by the Federal Reserve in its ...

    I. Moral suasionII. Changing the discount rateIII. Changing the reserve requirementIV. Changing the prime interest rate A. ...
  3. Which statements about common shareholder rights are FALSE? I. A shareholder may ...

    The correct answer is a. I should be the the other way around: convertible bond holders can exchange their bonds for shares. ...
  4. Which of the following are not types of open-end management investment companies ...

    The correct answer is d) Hedge funds are extremely aggressive entities that engage in margin and short-selling.  They are ...
  5. Which of the following signatures are required on a client’s new account form ... ...

    The correct answer is B. While local practices of a broker-dealer might require the client to sign the form, even when opening ...
  6. Which TWO statements are TRUE about writing covered calls? I ...

    The correct answer is c) I is incorrect because there is no margin requirement. III is incorrect because a call writer must ...
RELATED TERMS
  1. Breakpoint

    For load mutual funds, the dollar amount for the purchase of ...
  2. Breakpoint Sale

    The sale of a mutual fund at a set dollar amount that allows ...
  3. Rights of Accumulation - ROA

    A right that allows a shareholder to receive reduced sales charges ...
  4. Load Fund

    A mutual fund that comes with a sales charge or commission. The ...
  5. Income Stock

    An equity security that pays regular, often steadily increasing ...
  6. Tax Schedule

    A rate sheet used by individual taxpayers to determine their ...
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center