Forward Pricing

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Dictionary Says

Definition of 'Forward Pricing'

A Securities and Exchange Commission regulation that requires that investment companies price all of their buy and sell orders of fund shares according to the next net asset value (NAV). This valuation process is for open-end mutual fund transactions in which the mutual fund itself is constantly issuing and redeeming mutual fund shares at the most recent NAV per share.
Investopedia Says

Investopedia explains 'Forward Pricing'

Forward pricing is implemented when a trade is placed to buy or sell shares of an open-end mutual fund. This occurs because open-end funds only recalculate the net asset value of their mutual fund shares after the market closes each trading day. As a result, any mutual fund order placed by an investor can't be quoted at a previous net asset value price, and must instead be given according to the next computed net asset valuation.
Search results for

'Forward Pricing'

  • Which of the following terms are associated with the purchase ...

    http://www.investopedia.com/ask/answers/09/series7-011209.asp
    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. ...

  • A Natural Gas Primer

    http://www.investopedia.com/articles/fundamental-analysis/12/natural-gas-primer.asp
    ... natural gas prices. However, this volatility in the spot market does not
    typically affect the forward pricing. Forward pricing tends ...

  • Why Late Trading Is Illegal

    http://www.investopedia.com/articles/mutualfund/07/late-trading.asp
    ... This type of trading is illegal and has been since 1968, when the SEC adopted the
    "forward pricing rule." New York State's Martin Act paints the issue with a ...

  • 4 Alternatives To Traditional Mutual Funds

    http://www.investopedia.com/articles/mutualfund/10/open-ended-mutual-fund-alternatives.asp
    ... can be a real problem. Forward Pricing Mutual fund prices also lag the
    markets on a daily basis. Because the portfolio managers ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Pricing Bonds ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/pricing-bonds.asp
    ... 14.19 Pricing Bonds; 14.20 Duration; 14.21 International Bonds; 14.22 Government
    Bonds; ... Valuation; 14.43 Differentiating Between Spreads; 14.44 What are Forward ...

  • CFA Level 1 Study Guide - Portfolio Management - The Capital Asset ...

    http://www.investopedia.com/exam-guide/cfa-level-1/portfolio-management/capm-capital-asset-pricing-model.asp
    ... 14.19 Pricing Bonds; 14.20 Duration; 14.21 International Bonds; 14.22 Government
    Bonds; ... Valuation; 14.43 Differentiating Between Spreads; 14.44 What are Forward ...

  • Mutual Funds Vs. ETFs: A Comparison - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/Mutual-Funds-Vs.-ETFs-A-Comparison.aspx
    ... ETF. Mutual Fund. Daily and continuous pricing. Forward pricing. Exchange traded.
    Fund redemption at day's end. No tax effect of trading on shareholders. ...

  • Series 6 Question of the Week 10/06/2005 | Investopedia

    http://www.investopedia.com/professionals/questionoftheweek/series6/100605.asp
    ... closing prices. The investor redeems at the BID (or NAV) next computed after
    the order is placed--forward pricing. The fund charges ...

  • CFA Level 1 Study Guide - Fixed Income Investments - Forward Rates ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/forward-rates-versus-spot-rates.asp
    ... 14.19 Pricing Bonds; 14.20 Duration; 14.21 International Bonds; 14.22 Government
    Bonds; ... Valuation; 14.43 Differentiating Between Spreads; 14.44 What are Forward ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Forward ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/forward-market.asp
    ... 14.19 Pricing Bonds; 14.20 Duration; 14.21 International Bonds; 14.22 Government
    Bonds; ... Valuation; 14.43 Differentiating Between Spreads; 14.44 What are Forward ...

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