Multiple choice

An agent can offer and sell a fund's units at

  1. any price he chooses

  2. a price determined by competition among agents

  3. a price based on demand for that fund's units

  4. the public offering price currently in effect
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Mutual fund agents are bound by law to sell at the public offering price currently in effect, which is NAV plus applicable loads. They cannot arbitrarily set prices based on competition or demand.

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