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.
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.
3.
If you want to read about your options for mutual fund investment plans, you can find them in the shareholder manual.
Choose wisely. There is only one correct answer.
True. Investment plans are part of a shareholder's privileges.
4.
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.
5.
The mutual fund prospectus explains the risk of the mutual fund.
Choose wisely. There is only one correct answer.
False. It explains the risks of the types of securities it holds, but it does not cover risks of the fund itself.
6.
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.