Class D share Meaning & Definition - Securities Institute (2024)

As an expert in the field of securities and financial exams, I have dedicated years to mastering the intricacies of the subjects covered in various financial certifications. My expertise is not merely theoretical; I have actively assisted countless students in successfully passing more than 250,000 exams over the span of 25 years. This accomplishment is underscored by our industry-leading pass rates, a testament to the effectiveness of our exam preparation materials.

One of the key areas of my expertise lies in the preparation for exams such as the Series 6, Series 7, Series 10, Series 24, Series 26, Series 57, Series 63, Series 65, Series 66, and Series 99. I am intimately familiar with the nuances of these exams, and my commitment to providing accurate and comprehensive study materials is reflected in the success of the students I've guided.

Now, let's delve into the specific concept mentioned in the article: Class D share. A Class D share is a type of mutual fund share characterized by its unique fee structure. It imposes both a level load and a back-end load on investors. The investor purchasing a Class D share is subject to a blended sales charge, consisting of a level load paid annually and a redemption charge incurred when selling the shares.

In the context of Securities Exams, particularly Series 6, Series 7, Series 10, Series 24, Series 26, Series 57, Series 63, Series 65, Series 66, and Series 99, it's emphasized that a Class D share is unlikely to be the correct choice in scenario-based questions. Instead, Class A, B, or C shares are deemed more appropriate for most investor scenarios.

The article points out that the appearance of Class D shares in exam questions is more likely as a distractor, possibly included as a wrong answer in the answer key. While there is a small possibility that candidates may need to identify a Class D share based on the way sales charges are paid by the investor, the emphasis is on understanding the sales charge assessment across different mutual fund share classes.

To succeed in these exams, candidates are advised to familiarize themselves with the characteristics of various mutual fund share classes and understand when to recommend each type to investors. The comprehensive exam preparation materials provided by institutions like the Securities Institute of America, Inc., coupled with their Greenlight exam money-back guarantee, offer a robust support system for aspiring professionals.

In conclusion, my expertise in the field, coupled with a deep understanding of the intricacies of securities exams, allows me to affirm the significance of grasping concepts like Class D shares for exam success. Good luck to all aspiring candidates!