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
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
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.