What is a breakpoint sale?

A breakpoint sale is the sale of a mutual fund at a set dollar amount that allows the fundholder to move into a lower sales charge bracket. Breakpoint sales provide fee discounts to investors based on investment breakpoint levels determined by the fund company.

What does breakpoint mean in business?

What Is a Breakpoint? A breakpoint is the dollar amount for the purchase of a load mutual fund’s shares that qualifies the investor for a reduced sales charge. Breakpoints offer investors a discount for making larger investments.

What best describes a breakpoint?

A breakpoint sale is a violation of the Conduct Rules. It occurs when a broker permits a client to purchase shares in an amount immediately below the amount that would qualify the client for a discounted sales charge, without informing him of the breakpoint.

Is a breakpoint sale Legal?

Unfortunately, some brokers take advantage of investors and will try to intentionally push them away from available discounts. This is a direct violation of FINRA rule 2342 which prohibits a practice known as a ‘breakpoint’ sale.

What is a breakpoint quizlet?

The point at which an investor receives a reduced sales charge based on the quantity purchased. Breakpoint Sales are. bad.