Q:
Mandy Edwards owns 100 shares in the PruRock Value Fund. She could use a little extra money and calls the mutual fund company and sells 50 shares. When will she receive her check?
a) Within seven calendar days
b) Within 14 business days
c) Within seven business days
d) Within 14 calendar days
A:
The correct answer is a).
The redemption of shares that have been issued by an open-end investment company, also known as a mutual fund, must be paid to the client within seven calendar days of the request for redemption.

MORE FAQS

  1. An investor with 1,000 shares of the Amazing Growth fund places a redemption order for the shares before ...

  2. Can an open-ended fund's price appreciate significantly?

  3. Can I sell mutual fund shares below their minimum intial purchase amount without being penalized?

  4. Under the Investment Company Act of 1940, an investment company, or mutual fund company, must have minimum net assets of how much before it can issue shares to the public?

  5. What is the difference between redemption of shares and repurchase of shares?

  6. How do I calculate the loan-to-value ratio using Excel?

  7. Under the Investment Company Act of 1940, an investment company must have minimum net assets of how much before it can issue shares to the public?

  8. Can you place a stop-loss order on a mutual fund?

  9. Why would an investor opt for a partial redemption as opposed to a full redemption?

  10. Why is it that when investors realize returns on a mutual fund, its price tends to fall?

  11. How liquid are Vanguard mutual funds?

  12. When are mutual fund orders executed?

  13. How do mutual fund trades clear and settle?

  14. Which of the following terms are associated with the purchase/redemption of open-end investment company ...

  15. Which of the following terms are associated with the purchase/redemption of open-end investment company ...

  16. Should mutual funds be subject to more regulation?

  17. How much of a company's stock can a mutual fund own?

  18. What advantages do exchange-traded funds have over mutual funds?

  19. There are several major factors that make mutual funds attractive investments for many people ...

  20. What are the primary differences between a closed end investment and an open end investment?

RELATED FAQS

  1. An investor with 1,000 shares of the Amazing Growth fund places a redemption order ...

    The correct answer is a. The investor placed her redemption order before the close of the market on Friday, so she will redeem ...
  2. 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 ...
  3. Can I sell mutual fund shares below their minimum intial purchase amount without ...

    Yes. You can freely buy and sell shares of a mutual fund regardless of any requirement for a minimal initial purchase amount ...
  4. Under the Investment Company Act of 1940, an investment company, or mutual fund company, ...

    A. $25,000B. $50,000C. $100,000D. $500,000 Correct answer: CAn investment company (mutual fund) must have at least ...
  5. What is the difference between redemption of shares and repurchase of shares?

    Sometimes, shares of stock offered by a company are not regular, market-driven common shares. Instead, they may be preferred ...
  6. How do I calculate the loan-to-value ratio using Excel?

    Learn what a mutual fund and a money market fund are, and understand the differences between each and how they serve various ...
RELATED TERMS
  1. Redemption

    The return of an investor's principal in a fixed income security, ...
  2. Open-End Fund

    A type of mutual fund that does not have restrictions on the ...
  3. Forward Pricing

    A Securities and Exchange Commission regulation that requires ...
  4. Interval Fund (Scheme)

    A fund that combines the features of open-ended and closed-ended ...
  5. Redemption Suspension

    A provision on a hedge fund preventing the withdrawal from the ...
  6. Open-End Management Company

    A company that distributes and redeems securities it issues. ...

You May Also Like

Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center