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Funds 108: Introduction to Mutual Fund Prospectuses

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1.
Which of the following is not a transaction fee?
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Management fee. This fee is an operating expense. It is not related to trading.
2.
Which party hands out dividends to mutual fund investors?
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The transfer agent. If you chose "distributor," remember that this party distributes shares, not dividends.
3.
An objective may include a statement of the level of share-price stability it seeks.
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True. Stability is often a strategy for achieving an objective.
4.
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.
5.
If you want to read about your options for mutual fund investment plans, you can find them in the shareholder manual.
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True. Investment plans are part of a shareholder's privileges.
6.
To promote a mutual fund, a prospectus could legally include information about why you should invest in the fund.
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False. Prospectuses are forbidden to make any sales recommendations.