Practice mandated by the SEC that open-end investment companies establish all incoming buy and sell orders on the next net asset valuation of fund shares.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
A practice in which a mutual fund determines the price of its shares based on the next net asset value following an order to buy or sell shares. The SEC requires mutual funds to use forward pricing to arrive at their share prices.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The pricing of mutual fund shares on the basis of the next net asset valuation following receipt of a customer's order to buy or sell. While the price is based on net asset value, this value is adjusted for any applicable redemption or sales fee. Forward pricing is required by the SEC.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.