Mutual Funds
Which mutual fund share class typically has the highest ongoing 12b-1 fees?
Class B and C shares typically have higher 12b-1 fees (up to 1%) because they do not charge upfront sales loads. Class A shares charge a front-end load but have lower ongoing 12b-1 fees (usually 0.25% or less).
Complete Analysis & Legal Rationale
Class B and C shares typically have higher 12b-1 fees (up to 1%) because they do not charge upfront sales loads. Class A shares charge a front-end load but have lower ongoing 12b-1 fees (usually 0.25% or less).
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Regulatory framework for investment companies including mutual funds (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.