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.

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

    Mutual funds have been in existence since 1924, when the first open-ended mutual fund was created. Since then, the market ...
  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 ...
RELATED TERMS
  1. Forward Pricing

    A Securities and Exchange Commission regulation that requires ...
  2. Open-End Fund

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

    The return of an investor's principal in a fixed income security, ...
  4. Open-End Management Company

    A company that distributes and redeems securities it issues. ...
  5. Run On The Fund

    A situation in which a hedge fund faces an increasing amount ...
  6. Fund Company

    A commonly used term to describe an investment company, which ...
Hot Definitions
  1. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  2. Demonetization

    Demonetization is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a ...
  3. Investment

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic ...
  4. Redlining

    The unethical practice whereby financial institutions make it extremely difficult or impossible for residents of poor inner-city ...
  5. Nonfarm Payroll

    A statistic researched, recorded and reported by the U.S. Bureau of Labor Statistics intended to represent the total number ...
  6. Conflict Theory

    A theory propounded by Karl Marx that claims society is in a state of perpetual conflict due to competition for limited resources. ...
Trading Center