Security Exam Chapter 7

A mutual fund shareholder's tax liability is reported on Form______.

If an investor wants exposure to a particular industry, a ___________ fund is the best type of investment.

The NAV of a mutual fund is like the ______ price of stock.

True or False: Exchanging mutual fund shares avoids taxes, while switching is taxable.

• True

• False. Both exchanging and switching mutual fund shares are taxable events.

Letters of Intent are valid for ______________ months.

A mutual fund's POP = _______ + ______________.

The _________________ is synonymous with the ask for a mutual fund.

True or False: Mutual fund share purchases and redemptions settle in two business days.

• True

• False. Unlike stocks and bonds, mutual funds don't have a fixed settlement date. Most funds settle on the same day.

Typically, a mutual fund's ex-dividend date is the business day ______ the record date.

An investor exchanging mutual fund shares will pay the ___________________.