What constitutes a breakpoint sale in mutual funds?

A breakpoint sale in mutual funds occurs when an investor purchases shares at a price just below the breakpoint level. This breakpoint is essentially a threshold at which the investor would qualify for a reduced sales charge or commission on their purchase. When an investor buys just below this threshold, they miss out on the opportunity to benefit from the lower fees that would apply at the breakpoint, which is considered detrimental to the investor's interests. Financial professionals are discouraged from engaging in such practices because they can lead to increased costs for the investor.

By identifying a solicited purchase just below the breakpoint, the correct answer highlights the action that constitutes a violation of regulations aimed at protecting investors from unnecessary expenses. The focus on solicitation indicates that the sale was prompted by a financial professional, further emphasizing concerns regarding ethical practices in financial transactions.