5-66 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 buying or selling mutual fund shares after the price has been set for the day, which gives the investor an unfair advantage over other investors. Market timing involves rapid buying and selling of mutual fund shares to exploit price discrepancies, directed brokerage involves brokers receiving compensation for directing clients to specific mutual funds, and improper fee assessment involves charging inappropriate fees to investors. None of these descriptions match the scenario described in the question, therefore the correct answer is B, late trading.

5-66 the Type of Abusive Activity That Involves Cases Where