CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

The commission deducted from a shareholder's contribution when shares of an open-end fund are purchased is called the ______.

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
You need to log in first to add your comment.