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Funds 108: Introduction to Mutual Fund Prospectuses

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1.
One reason prospectuses use technical and precise language is to protect the consumer.
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True. This language makes it harder to misinterpret what is in a document.
2.
What does the section on the fund's objectives tell the investor?
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All of the above. The "Objectives" section includes strategies, philosophy, and objectives.
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.
The mutual fund advisor may play additional roles besides that of advisor.
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True. It may also be the transfer agent.
5.
The mutual fund shareholder manual explains how to open a mutual fund account.
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True. That is one of its most basic services.
6.
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.