The type of abusive activity that involves cases where investors were able to buy or sell mutual fund shares long after the price had been set each day is

Question

Quizplus · Accepted Answer

Late trading involves the ability to buy or sell mutual fund shares after the market has closed and the price for the day has been set. This is an abusive activity because it allows investors to take advantage of market news that comes out after the market has closed, giving them an unfair advantage over other investors. Market timing involves rapid trading in and out of a mutual fund to take advantage of small price discrepancies, directed brokerage refers to the practice of mutual funds directing trades to particular broker-dealers in exchange for favors, and improper fee assessment involves overcharging investors for fees. None of these options involve the specific type of abusive activity described in the question.

The Type of Abusive Activity That Involves Cases Where Investors