A:

A) Forward pricing
B) Current business day close
C) At the money
D) 90-day backdating






The correct answer is A.

Forward pricing is the SEC Rule that requires all transactions in open-end investment company shares to be based on the next calculation of the fund's Net Asset Value (NAV).



RELATED FAQS
  1. Which of the following terms are associated with the purchase/redemption of open-end ...

    The correct answer is a. Forward pricing is the SEC Rule that requires all transactions in open-end investment company shares ... Read Answer >>
  2. Which of the following terms are associated with the purchase/redemption of open-end ...

    The correct answer is b. Forward pricing is the SEC Rule that requires all transactions in open-end investment company shares ... Read Answer >>
  3. Can an open-ended fund's price appreciate significantly?

    Theoretically, open-end mutual fund prices can experience a significant increase in price. However, three factors need to ... Read Answer >>
  4. How often are mutual fund prices updated?

    Learn how often mutual funds must report their price, or net asset value, which is daily for open-ended registered investment ... Read Answer >>
  5. You currently own a mutual fund with a Net Asset Value (NAV) of $11.25 ...

    The correct answer is d In mutual funds, the NAV is the total value of the fund's portfolio less liabilities. The NAV is ... Read Answer >>
  6. How can unethical executives use options backdating to evade taxes?

    The practice of options backdating has landed many companies into the hotseat. The SEC constantly investigates possible instances ... Read Answer >>
Related Articles
  1. ETFs & Mutual Funds

    Understanding Open-End Funds

    An open-end fund is a type of mutual fund that does not limit the amount of shares it issues, but issues as many shares as investors are willing to buy.
  2. ETFs & Mutual Funds

    When is a Mutual Fund the Best Investment Option?

    ETFs and their multitude of strategies are super-popular, but when it a good old mutual fund the best choice?
  3. Trading

    The Dangers Of Options Backdating

    This form of executive compensation can pose serious risks for investors.
  4. ETFs & Mutual Funds

    4 Alternatives To Traditional Mutual Funds

    A rich offering of attractive alternatives have the open-ended mutual fund facing obsolescence.
  5. ETFs & Mutual Funds

    Open Your Eyes To Closed-End Funds

    Although less popular than their open-ended counterparts, these investment vehicles are worth a second look.
  6. ETFs & Mutual Funds

    An Introduction To Closed-End Mutual Funds

    If you're looking to generate income for your investments, look no further.
  7. Financial Advisor

    Why ETFs Will Eventually Trump Mutual Funds

    Exchange-traded funds are growing rapidly in popularity and may well overtake their traditional open-ended cousins at some point. Here's why.
  8. ETFs & Mutual Funds

    Closed-End Vs. Open-End Funds

    Open-end products may be a safer choice than closed-end, but closed-end funds might produce a better return.
  9. Investing

    4 Factors to Know About Money Market Reform in 2016 (FII, BAC)

    Learn more about the impending implementation of the money market fund reform, including how it impacts individual and institutional investors.
  10. ETFs & Mutual Funds

    ETFs and Taxes: What Investors Need to Know

    It's true that ETFs can offer tax efficiency, but that's not always the case. Here's what investors need to watch out for.
RELATED TERMS
  1. Forward Pricing

    A Securities and Exchange Commission regulation that requires ...
  2. Backdating

    Dating any document by a date earlier than the one on which the ...
  3. Open-End Fund

    A type of mutual fund that does not have restrictions on the ...
  4. Open-End Management Company

    A company that distributes and redeems securities it issues. ...
  5. Fund Company

    A commonly used term to describe an investment company, which ...
  6. SEC Form 497K1

    A filing with the Securities and Exchange Commission (SEC), also ...
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center