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.

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Related Definitions

  1. Mutual Fund

    An investment ...
  2. Net Asset Value - NAV

    A mutual fund's ...
  3. Order

    An investor's ...
  4. Securities And Exchange Commission - SEC

    A government ...
  5. Trade

    A basic economic ...
  6. Open-End Fund

    A type of mutual ...
  7. Security

    A financial ...
  8. Investment Company

    A corporation or ...
  9. Competition-Driven Pricing

    A method of ...
  10. Fund Of Funds

    A mutual fund ...

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