Finra Exam Series-6 Topic 2 Question 30 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 30
Topic #: 2

Which of the following statements regarding the purchase and redemption of mutual fund shares is false?

AMutual fund shares may not be purchased on margin.

BAn investor can both purchase and sell fractional shares of mutual funds.

CWhen an investor redeems his shares, the mutual fund must pay for the shares within 7 business days.

DIf an investor places an order to buy or redeem shares of a mutual fund before 4 P.M.EST on a day when the markets are open, the price will be based on the fund's net asset value (NAV), as calculated at the end of that trading day.

Show Suggested Answer

Suggested Answer: C

The false statement regarding the purchase and redemption of mutual fund share is that when an investor redeems his shares, the mutual fund must pay for the shares within 7 business days. The mutual fund must pay for the shares within 7 calendar days. All the other statements are true.

by Tiera at May 03, 2022, 07:04 AM

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