Q:
Which of the following terms are associated with the purchase/redemption of open-end investment company shares?
a) 90-day backdating
b) Forward pricing
c) At the money
d) Current business day close
A:

The correct answer is b.
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).


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