SIE (Securities Industry Essentials) 2025 – 400 Free Practice Questions to Pass the Exam!

Image Description

Question: 1 / 400

What best describes a Letter of Intent in mutual funds?

A contract to sell a set number of shares

A written indication to sell a set number of shares in the future

A written indication to purchase a set number of mutual fund shares in the future

A Letter of Intent in mutual funds is a written indication to purchase a set number of mutual fund shares in the future. A is incorrect because it refers to selling rather than purchasing. B is incorrect because it refers to selling in the future, rather than purchasing. D is incorrect because a Letter of Intent does not guarantee mutual fund performance. It is simply a written indication of an intent to purchase a set number of shares in the future.

Get further explanation with Examzify DeepDiveBeta

A contract guaranteeing mutual fund performance

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy