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