- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 3. Portfolio Management: An Overview
- Subject 5. Pooled Investments
CFA Practice Question
The commission deducted from a shareholder's contribution when shares of an open-end fund are purchased is called the ______.
B. front-end load
C. 12(b)-1 fee
A. management fee
B. front-end load
C. 12(b)-1 fee
Correct Answer: B
The commission deducted from a shareholder's contribution when shares of an open-end fund are purchased is called a front-end load. The charge is made when an investor buys shares. The offering price of a load fund equals the NAV of the fund plus the load.
User Contributed Comments 1
| User | Comment |
|---|---|
| 10425406 | front end load is when the investor is purchasing the shares back end is when the investor is redeeming the shares |