Which of the following is NOT a common type of commission arrangement for securities and investments?

• A. Front-end load
• B. No-load
• C. Back-end load
• D. Fixed asset depreciation

Answer: (D)

Verified step by step guidance

1. Step 1: Begin by understanding the context of the question. It is asking about common types of commission arrangements for securities and investments. These arrangements typically involve fees or charges associated with buying, selling, or holding investments.
2. Step 2: Review the listed options: 'Front-end load,' 'No-load,' and 'Back-end load.' These are all terms commonly used in the financial industry to describe commission structures for mutual funds and other investment products.
3. Step 3: Understand the meaning of each term: 'Front-end load' refers to a commission or fee charged at the time of purchase; 'No-load' means there is no commission or fee; and 'Back-end load' refers to a fee charged when the investment is sold.
4. Step 4: Analyze the fourth option, 'Fixed asset depreciation.' This term is unrelated to commission arrangements for securities and investments. Instead, it refers to the accounting process of allocating the cost of a tangible fixed asset over its useful life.
5. Step 5: Conclude that 'Fixed asset depreciation' is the correct answer because it does not pertain to commission arrangements for securities and investments, unlike the other options provided.