Risks

An investor in the 28% tax bracket has a $5,000 loss after netting all capital gains and losses realized. How much may the investor deduct from income that year?

$3,000 and then it carries over.

Index TRACKING Funds

Good for ASSETT ALLOCATION, following industry trends, balancing a portfolio, speculative trading, and HEDGING. Mirror a market. Low turnover, low cost. NOT an investment company product. Trade, and are priced like shares of stock. Can create (issue) new shares.

leveraged fund

Not for anyone that derivative products (options, future contracts) are not suitable for. Risk with MULTIPLE of any loss because the 2X 3X possible loss. Try to give multiple rate of return of the benchmark index they are designed to track.

mortgage bonds apply to

investor seeking a high level of income combined with a moderate level of risk

supplemental liquidity provider

located off floor and is required to maintain a bid or an offer at least 10% of the trading day

12B-1 Fees cover...

only for sales promotions and fees, and other activities relating to the distribution of the fund's shares. (printing fees as well)

A municipal finance professional (MFP) is

an associated person of a broker/dealer who is primarily engaged in municipal securities representative activities other than retail sales to individuals, who solicits municipal securities business for the broker/dealer, or who is in the supervisory chain above MFPs as described.

A young first time investor wants to put $10,000 savings in an investment that she wants to see grow over many years. She intends to add to it in small amounts whenever able. A balanced mutual fund and an equity growth fund are chosen. Which would be the most suitable share class for this initial investment?

class B shares. B class shares have a back-end load (sales charge) only payable when the shares are redeemed and those sales charges dissipate typically over the first 5 to 7 years. Until they disappear completely, the investment is help beyond that time. This is why B shares are generally most suitable for smaller investments (where taking advantage of breakpoints would not be a factor) made with a longer investment time horizon such as this one.