A mutual fund is priced once a day at the close of trading. This means that the net asset value (NAV) of the mutual fund is calculated at the end of the trading day, based on the closing prices of the securities held in the fund. This NAV is the price at which investors can buy or sell shares of the mutual fund.

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A Mutual Fund

Question 50

Multiple Choice

A mutual fund:

A) Is priced once a day at the opening of trading.
B) Is priced once a day at the close of trading.
C) Is priced continuously during the trading day.
D) Is priced at the open and close of trading.
E) None of the above.

Correct Answer: