PLANNING TO TAKE THE SIE EXAM? THEN STUDY AND KNOW THE VARIOUS MUTUAL FUND SHARE CLASSES!

If you plan on sitting for the Securities Industry Essentials (SIE) Exam, be prepared for test questions that ask about the various Share Classes for Mutual Funds. FINRA publishes a Content Outline for the SIE Exam, and it specifically lists knowledge of Share Classes in Section 2.1.4.

Bob Eder in his Study for the Securities Industry Essentials (SIE) Exam discusses Share Classes of Mutual Funds in detail. Here is an example of Bob Eder's treatment:

"Class B                                                                                                      

"Surrender Charges                                                                                   (2.1.4)

"Class B shares entail a contingent deferred sales charge (CDSC), or sometimes called a "surrender charge," similar to such charges in many annuities. This means that an investor pays the charges only when and if he/she redeems shares within the first five or seven years. There is no front-end load, even though there are contingent sales charges on the back end. Typically, Class B shares carry higher total annual expenses than Class A, but lower than Class C. Be careful! FINRA warns representatives that they may not call, or characterize, Class B shares as "no load." So never call, or refer to, Class B shares as "no-load."

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. 

Here is the link to Bob Eder's SIE book on Amazon. 

For questions about Bob Eder's Study for the SIE Exam, or questions in general about the SIE Exam, or about Share Classes of 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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