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Funds 108: Introduction to Mutual Fund Prospectuses

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1.
Which party hands out dividends to mutual fund investors?
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The transfer agent. If you chose "distributor," remember that this party distributes shares, not dividends.
2.
If you want to read about your options for mutual fund investment plans, you can find them in the shareholder manual.
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True. Investment plans are part of a shareholder's privileges.
3.
Transaction fees cover buying and selling costs of securities within a mutual fund.
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True. Transacting is essentially buying and selling portfolio securities.
4.
You can find information on how to contact a mutual fund by reading its introduction.
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True. The introduction includes an address and telephone numbers.
5.
A mutual fund objective may include a statement of the level of income it seeks.
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True. This is one of the most important parts of the objective.
6.
To promote a mutual fund, a prospectus could legally include information about why you should invest in the fund.
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False. Prospectuses are forbidden to make any sales recommendations.