Bubba's order to purchase investment company shares must be executed at a price based upon the net asset value of the shares:
A)next computed after receipt of the order by the dealer
B)last computed before receipt of the order by the dealer
C)computed the previous day at the close of the NYSE
D)computed the same day the order is received by the dealer

Question

Quizplus · Accepted Answer

next computed after receipt of the order by the dealer. This is called "forward pricing". Generally, the price is computed as of the close of the market on the day of the order. However, if the order is received after this computation, the order is executed based upon the next day calculation.

Bubba's Order to Purchase Investment Company Shares Must Be Executed