All Courses > 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.
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.
2.
The mutual fund advisor may play additional roles besides that of advisor.
Choose wisely. There is only one correct answer.
True. It may also be the transfer agent.
3.
An objective may include a statement of the level of share-price stability it seeks.
Choose wisely. There is only one correct answer.
True. Stability is often a strategy for achieving an objective.
4.
Transaction fees cover buying and selling costs of securities within a mutual fund.
Choose wisely. There is only one correct answer.
True. Transacting is essentially buying and selling portfolio securities.
5.
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.
6.
Which of the following is not covered under a prospectus' section on performance?
Choose wisely. There is only one correct answer.
Risks. The "Performance" section deals with objective data.