In which of the following ways can investor qualify for a breakpoint ...

By Investopedia Staff AAA
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
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.


  1. Unemployment resulting from changes in the basic composition of the economy ... ...

    The correct answer is a. An example of structural unemployment is the technological revolution. Computers might have eliminated ...
  2. You observe the following exchange rates in the following markets ...

    Free info on financial certification exams including study guides, exam questions, and much more!
  3. A 6.4% coupon bond that is expected to mature in five years is currently trading ...

    The correct answer is: C) Step 1: Future value of reinvested coupons. PMT = 3.20; n = 10; I = 2.9% Therefore, FV = 36.516
  4. You currently are holding a portfolio of bonds. Interest rates are expected to increase ...

    The correct answer is c. Bonds with high convexity are less affected by changes in interest rates than bonds with lower convexity. ...
  1. Series 79

    A examination to ensure a candidate is qualified to become a ...
  2. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  3. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  4. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  5. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
  6. Series 28

    An exam given by the Financial Industry Regulatory Authority ...

You May Also Like

Related Articles
  1. Insurance

    Municipal Bond Tips For The Series 7 ...

  2. Retirement

    6 Proven Tips For Series 6 Success

  3. Insurance

    Tips For Passing The Series 6 Exam

  4. Professionals

    Banker Or Broker: Which Career Is Right ...

  5. Professionals

    Breaking Down Financial Securities Licenses

Trading Center