A 12b-1 fee is a fee that mutual funds might charge for advertising and distribution expenses, including the cost of printing and sending prospectuses to new investors and marketing costs. It does not relate to performance incentives, is not levied by state security and exchange commissions, and is not exclusive to international investments.

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A 12b-1 Fee

Question 14

Multiple Choice

A 12b-1 fee

A) permits management to use fund assets for advertising expenses.
B) Is incentive compensation for good performance?
C) Is levied by state security and exchange commissions.
D) Only applies to international investments.

Correct Answer: