SIE (Securities Industry Essentials) Practice Exam

Which class share typically has a 12b-1 fee?

1. Class A

2. Class B

3. Class C

4. Class D

The correct answer is: Class C

Class C typically has a 12b-1 fee, while Class A and Class B usually do not. Class D may or may not have a 12b-1 fee, as it is usually used for institutional investors and may have different fee structures. It is important to note that the presence of a 12b-1 fee does not necessarily make a particular class of shares superior or inferior; it simply indicates the type of fee structure for that class. Therefore, Class A, B, and D are not incorrect choices, but they are less likely to have 12b-1 fees compared to Class C. The best answer is Class C. Remember to always research and understand the fees associated with different classes of shares before making investment decisions.