Exercise
Answer the following questions.
1. What is the purpose of a letter of intent?
A. A letter of intent accompanies the prospectus and explains the terms of sale to potential investors.
B. A letter of intent allows an investor to place a price-per-share bid on an intended purchase.
C. A letter of intent allows an investor to pay a sales charge based on a lower breakpoint on sales during a specified period of time.
D. A letter of intent allows an investor to reserve shares for a future purchase at a specified time when he has the money.
2. What is the purpose of rights of accumulation?
A. Rights of accumulation allow an investor to choose whether to apply accumulation (appreciation) in her account to cash dividends or purchase of new shares.
B. Rights of accumulation allow an investor to pay a sales charge based on a lower breakpoint calculated by including account accumulation