Arizona State University (ASU) FIN380 Personal Financial Management Test 3 Practice

Class C shares are known for which type of fee structure?

No fees High front end costs Level load High back end costs

Correct Answer:

Level load

Explanation:

Class C shares are characterized by a level load fee structure. This means they typically charge a consistent management fee that is assessed annually, allowing investors to avoid hefty upfront fees that some other classes of shares might impose. Instead of facing a high front-end load (a fee when shares are purchased) or a high back-end load (a fee when shares are sold), investors in Class C shares pay a lower expense ratio and may experience ongoing fees that are assessed each year, which can make them attractive for those planning to hold the investment for a longer duration. This structure often appeals to investors who may want more flexibility in terms of buying and selling without incurring significant penalties or costs.

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