SIE Exam Question 373: Answer and Explanation

Question: 373

An individual contacts her financial representative to sell her mutual fund shares. The price she will receive is

• A. the next calculated POP price.
• B. the asked price at the close of the trading day.
• C. the next calculated NAV price.
• D. the market price at the time the order is entered.

Correct Answer: C

Explanation:

C - Investors sell their shares at the net asset value price next calculated after the order is received, which is the concept of forward pricing.