_____ allowed selected investors to purchase mutual funds after 4:00 p.m. ,using that day's NAV,rather than the next day's NAV,as required under the law.

Question

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Late trading refers to the practice of placing mutual fund trades after 4:00 p.m. using the current day's net asset value (NAV), even though the trade should have been processed at the next day's NAV. This allows selected investors to benefit from any mid-day price changes that have occurred before their trade is processed. It is a violation of SEC regulations and is considered fraudulent.

_____ Allowed Selected Investors to Purchase Mutual Funds After 4:00