FINRA Series 7 General Securities Representative Qualification Examination (GS) Series-7 Question # 4 Topic 1 Discussion
Series-7 Exam Topic 1 Question 4 Discussion:
Question #: 4
Topic #: 1
A mutual fund with an 8% load and a 1% redemption fee carries a current quote of $6.25 - $6.79. If an investor has tendered his shares for redemption on that basis, the per share price he will receive is approximately:
$6.19. The fund has a redemption fee of 1%. This is about 6 cents based upon the bid price. Subtracting that from the $6.25 bid results in $6.19.
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