Q:
Which of the following terms are associated with the purchase/redemption of open-end investment company shares?

a) Forward pricing
b) Current business day close
c) At the money
d) 90-day backdating

A:

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).


MORE FAQS

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

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

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

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

  5. How often are mutual fund prices updated?

  6. Under the Investment Company Act of 1940, which of the following is not a formal classification ...

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

  8. Mandy Edwards owns 100 shares in the PruRock Value Fund. She could use a little extra money and calls ...

  9. Mandy Edwards owns 100 shares in the PruRock Value Fund. She could use a little extra money and calls ...

  10. Which of the following are not types of open-end management investment companies ...

  11. Do ETFs have a board of directors?

  12. How do I purchase shares of a closed-end investment?

  13. You currently own a mutual fund with a Net Asset Value (NAV) of $11.25 ...

  14. 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?

  15. How is NAV used for oil, gas, and energy investments?

  16. 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?

  17. What is the difference between "closed end credit" and a "line of credit?"

  18. What risks are associated with a closed end investment?

  19. All of the following statements are true with respect to the various ways that equity investments may ...

  20. What is a mutual fund's NAV?

RELATED FAQS

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

    A) Forward pricing B) Current business day close C) At the money D) 90-day backdating The correct answer is A.Forward pricing ...
  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 ...
  4. What are the primary differences between a closed end investment and an open end ...

    Learn what the primary differences are between open-end investments and closed-end investments, and the implications for ...
  5. 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 ...
  6. Under the Investment Company Act of 1940, which of the following is not a formal ...

    The correct answer is d. A mutual fund is technically registered under the ’40 Act as an open-end management investment company. ...
RELATED TERMS
  1. Open-End Management Company

    A company that distributes and redeems securities it issues. ...
  2. Forward Pricing

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

    A type of mutual fund that does not have restrictions on the ...
  4. Fund Company

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

    A filing with the Securities and Exchange Commission (SEC), also ...
  6. Open-End Mortgage

    A type of mortgage that allows the borrower to increase the amount ...
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  4. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  5. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  6. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center