Under the Investment Company Act of 1940, which of the following qualify for a discount in a mutual fund's sales charge?

Under the Investment Company Act of 1940, which of the following qualify for a discount in a mutual fund's sales charge?


I. Mr. and Mrs. Jones each purchase $5,000 worth of shares; the fund offers a volume discount for a single purchase of $10,000.


II. Neighbors Jan, Mickey, and Lee form an investment club; Jan places an order for $10,000 worth of shares to be held in their three names. The fund offers a volume discount for a $10,000 purchase.


III. Allen is the vice president of a firm under contract to provide investment advice to a mutual fund. He buys shares of that fund.


A) I and II.

B) II and III.

C) I, II and III.

D) I and III.



Answer: D) I and III.


Learn More :