Orders placed for buying shares of a mutual fund any time up to 4:00 p.m. are priced at that day's net asset value (NAV), and orders placed after 4:01 p.m. are priced at the next day's NAV. What is this practice known as?

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This practice is known as forward pricing. It ensures that all investors receive the same price for the mutual fund shares based on the net asset value calculated at the end of the trading day. This eliminates any potential for market timing or price arbitrage. Late trading, price arbitrage, and price dealing are all illegal practices in the mutual fund industry.

Orders Placed for Buying Shares of a Mutual Fund Any