General Securities Sales Supervisor (Series10) Practice Exam

What is the maximum offering price per share for a $5,000 purchase of a non-12b-1 mutual fund with an NAV of $9.15?

1. $9.15

2. $9.50

3. $9.92

4. $10.00

The correct answer is: $10.00

To determine the maximum offering price per share for a non-12b-1 mutual fund, one must understand the mechanics of mutual fund pricing. The offering price is typically based on the Net Asset Value (NAV) plus any applicable sales charges, often referred to as the load. In this scenario, the NAV of the mutual fund is given as $9.15. To find the maximum offering price per share, it is appropriate to utilize the structure of mutual fund pricing, which generally allows for a sales load to be added on top of the NAV. Since the question specifies that this is a non-12b-1 mutual fund, it generally indicates that there are no ongoing 12b-1 fees, but it can still have a front-end sales load. Assuming the maximum offering price reflects a reasonable sales load on a mutual fund, the maximum offering price would typically be over the NAV of $9.15. If one considers a typical maximum load, which can be up to 8.5% in some cases, the price could range around $10.00 when accounting for this load. Thus, the maximum offering price per share, considering potential sales charges, would logically be at the ceiling of this range, which supports