Which of the following statements is not true about a letter of intent?
A)the letter of intent has a maximum duration of 13 months
B)a shareholder may not redeem any shares for 13 months
C)a letter of intent may be backdated by 90 days
D)a certain portion of shares purchased are held in escrow until the terms of the letter are met

Question

Quizplus · Accepted Answer

a shareholder may not redeem any shares for 13 months. Redemptions are permissible at any time. However, since escrowed shares are set aside to cover the difference in sales loads based on terms of the letter, redemptions prior to 13 months may liquidate the escrow account and thus return to the investor 100% of net asset value.

Which of the Following Statements Is Not True About a Letter