Series 66: 3.1.4.4. Purchasing And Redeeming Mutual Fund Shares

3.1.4.4. Purchasing and Redeeming Mutual Fund Shares

Bank or stock exchange member broker-dealers must follow certain rules when they purchase and redeem mutual fund shares.

Firms may not sell the shares to investors or nonmember broker-dealers at less than the public offering price unless the specific conditions for the lower price are stated in the prospectus (e.g., breakpoints, reinvested dividends).

Firms that are members of FINRA, referred to as “member firms,” can buy shar