Help
Course Catalog > Funds > 100
Funds 108: Introduction to Mutual Fund Prospectuses

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Which of the following is not a transaction fee?
Choose wisely. There is only one correct answer.
Management fee. This fee is an operating expense. It is not related to trading.
2.
You can find information on how to contact a mutual fund by reading its introduction.
Choose wisely. There is only one correct answer.
True. The introduction includes an address and telephone numbers.
3.
A mutual fund shareholder manual does all of the following except explain how _______.
Choose wisely. There is only one correct answer.
Taxes apply. The shareholder manual explains share price, redemption, and adding to your account.
4.
Which party hands out dividends to mutual fund investors?
Choose wisely. There is only one correct answer.
The transfer agent. If you chose "distributor," remember that this party distributes shares, not dividends.
5.
What does the section on the fund's objectives tell the investor?
Choose wisely. There is only one correct answer.
All of the above. The "Objectives" section includes strategies, philosophy, and objectives.
6.
To promote a mutual fund, a prospectus could legally include information about why you should invest in the fund.
Choose wisely. There is only one correct answer.
False. Prospectuses are forbidden to make any sales recommendations.