What is the term that describes allowing selected investors to purchase mutual funds after 4:00 p.m., using that day's net asset value (NAV), rather than the next day's NAV, as required under the law?

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Quizplus · Accepted Answer

This is known as late trading, which is illegal and unfair to other investors who have to purchase mutual funds based on the next day's NAV. Forward pricing is the standard practice of using next day's NAV for all investors, while backdating and circular trading refer to other types of illegal activities.

What Is the Term That Describes Allowing Selected Investors to Purchase