Under FINRA rules, the maximum sales charge that may be imposed on a mutual fund purchase is:A6% of the amount investedB7% of the amount investedC8 1/2% of the amount investedD9% of the amount invested
8 1/2% of the amount invested
The answer is C) 8 1/2% of the amount invested.
Under FINRA (Financial Industry Regulatory Authority) rules, the maximum sales charge or front-end load (a sales charge applied at the time of purchase) that may be imposed on a mutual fund purchase is 8 1/2 percent of the amount invested. This means that no load or sales charge may exceed 8 1/2 percent of the total amount invested by an investor. It is important to note that not all mutual funds charge front-end loads; some funds may be no-load funds and may not have any sales charges. Additionally, some mutual funds may have back-end loads or deferred sales charges, which are charges applied when the investor sells the shares, rather than at the time of purchase.
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