PLANNING TO TAKE THE SERIES 66 EXAM? THEN STUDY AND KNOW THE VARIOUS SHARE CLASSES OF MUTUAL FUNDS!

If you plan on sitting for the Series 66 Exam, be prepared for test questions that ask about the various Share Classes for Mutual Funds. NASAA publishes Test Specifications for the Series 66 Exam that specifically list knowledge of Share Classes in Section II (H) (1).

Bob Eder in his Study for the Series 66 Exam discusses Share Classes of Mutual Funds. Here is an example of Bob Eder's treatment:

 Class C Shares                                                           II (H) (1 & 4)

With Class C shares, holders pay a daily charge, based on the amount of their assets invested. This charge comes out on a daily basis as a small percentage of the value of shares that a person owns. It is called a 12b-1 charge. It usually hovers around 50 basis points or 0.005 or 0.5 percent. For example, Jason owns $100,000 of XYZ Fund's Class C shares. His daily 12b-1 charge is calculated as follows: [$100,000* .005]÷365. That equals a charge of $1.37 per day. It does not seem like much, but as the days roll by, and then the months, and then the years, a 12b-1 charge can be quite expensive! Furthermore, because this charge is taken out daily, before the newspapers quote the fund's NAV, shareholders are often totally unaware that there is indeed a daily charge.

Study for the Series 66 Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's Series 66 book on Amazon. For questions about Bob Eder's Series 66 Manual, Study for the Series 66 Exam, or questions in general about the Series 66 Exam, or about Share Classes for Mutual Funds, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. See Bob Eder's Author Page on Amazon.com.




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