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Official Practice ProblemFINRA Series 7 Blueprint: Function 4
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Question #s7-prep-series7-ch5-013Function 4Moderate

Mutual Funds

Which share class would be MOST appropriate for an investor planning to hold a fund for 10+ years with a $100,000 investment?

Correct Choice: A

Class A shares are most appropriate for large, long-term investments due to breakpoints and lower ongoing 12b-1 fees.

Complete Analysis & Legal Rationale

Class A shares are most appropriate for large, long-term investments due to breakpoints and lower ongoing 12b-1 fees.

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:

Choice ACorrect
None

Matches the verified teaching point in the explanation.

Choice BIncorrect
Concept Trap

Does not match the governing securities rule described in the explanation.

Choice CIncorrect
Concept Trap

Does not match the governing securities rule described in the explanation.

Choice DIncorrect
Concept Trap

Does not match the governing securities rule described in the explanation.

Authorities & References:

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.

🏛️

Regulatory Authority & Citations: Primary Legal Sources

Verified citations governing Question #s7-prep-series7-ch5-013 (FINRA Series 7 Content Outline)

To pass the FINRA Series 7, candidates must understand not just the calculation formulas, but the exact federal securities acts, SRO rulebooks, and statutory frameworks that enforce them. Review the primary authority records below:

FINRAFINRA Series 7 Content Outline— General Securities Representative Examination (Series 7) Content Outline

Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.

Read FINRA Official Rule

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