Question

NovelOptions mutual funds charge a 0.75% load when investors buy less than $10,000 in shares but no load if an investor buys over $10,000 in shares. Fiona has $14,000 to invest and her broker recommends buying $9,000 of NovelOptions mutual funds and $5,000 in U.S. Treasury bonds. What unethical or illegal action has the broker committed?


Select the best answer from the choices provided.
breakpoint violation
churning
chasing returns
unauthorized trading

Answer 1

@zaibali.qasmi

Answer 2

@zaibali.qasmi Churning?

Answer 3

@zaibali.qasmi Its Breakpoint violatio . A

Answer 4

sure.

Answer 5

wanna know why?

Answer 6

First chasing returns makes no sense, trading and churning is the samething

Answer 7

Breakpoint is when the broker highly suggest to buy Min amount of Stocks and the other in bonds so he can gain Commission