UNIT 3 Qbank
To qualify as an REIT, at least _____% of holdings must be in the form of real estate assets and cash.
75%
Both closed end and open end companies
compute net asset value per share
Class B shares have a
declining contingent deferred sales charge and a high 12b-1 fee
REITS do not have
flow through tax treatment of losses
Class A shares have
front end sales charge low 12b-1 fee
Class C shares have a
high 12b-1 fee level contingent deferred sales charge
what affects the NAV of a mutual fund
market appreciation of portfolio securities market decline in the value of portfolio securities
Net asset Value formula
net assets divided by number of outstanding shares
the tax consequences of transferring proceeds from one fund to another within the same family of funds is
on the date of the transaction, any gain or loss is recognized for tax purposes
a closed end investment company cannot
redeem it's own shares
which sales charge of Open end companies is based on NAV per share
redemption fee
shareholders of mutual funds do not have the right to
select specific securities for the portfolio
In a mutual fund portfolio you wouldn't find
short stock positions