The type of abusive activity that involves arrangements between mutual fund companies and brokerage houses is

Question

Quizplus · Accepted Answer

Directed brokerage involves mutual fund companies providing preferential treatment to brokerage houses in exchange for the promotion and sale of their funds. This is a form of abusive activity as it can result in investors being steered towards certain funds that may not be in their best interest, and it undermines the integrity of the investment process. Market timing and late trading are other forms of abusive activities that involve the manipulation of mutual fund prices for personal gain. Improper fee assessment involves charging inappropriate fees to investors, which is also a form of abusive activity. However, none of these involve arrangements between mutual fund companies and brokerage houses.

The Type of Abusive Activity That Involves Arrangements Between Mutual