Series 7 Exam Question 243: Answer and Explanation

Question: 243

Mutual funds must send financial statements to shareholders at least

• A. monthly
• B. bimonthly
• C. quarterly
• D. semiannually

Correct Answer: D

Explanation:

D. Under the Investment Company Act of 1940, mutual funds must provide semiannual reports to shareholders. To help you remember how often account statements should be sent out, think "AIM":

A = Active account (monthly)

I = Inactive account (quarterly)

M = Mutual fund (semiannually)