Question

All of the following statements are true regarding the sponsor of a mutual fund EXCEPT the sponsor:

A. establishes the fund
B. manages the fund
C. is also known as the fund underwriter
D. registers the fund with the Securities and Exchange Commission

Answer 1

The sponsor of a mutual fund establishes, manages, and registers the fund, but is not typically referred to as the fund underwriter.

Step-by-step explanation:

All of the statements A, B, and D are true regarding the sponsor of a mutual fund.

The sponsor is the entity that establishes the mutual fund and registers it with the Securities and Exchange Commission (SEC).

They are also responsible for managing the fund and ensuring its compliance with regulatory requirements.

However, statement C is false. The sponsor of a mutual fund is not typically referred to as the fund underwriter. The underwriter is a different entity involved in the initial public offering (IPO) process of the fund's shares.