What is prices ahead?

Forward Pricing is a method of ordinary shares used by investment companies and funds that buy and sell open -end stocks. In the price of prices, a mutual fund usually determines the price of its shares according to the net value of the assets (NAV) of the shares after receiving the order for purchase or selling shares. In general, the Fund determines the net value of its shares daily after the end of the major exchanges. If the order for the purchase of shares of mutual funds is placed after the Fund value is a net time, the Fund cannot appreciate the order at the net value of the previous day asset. As a result, the Fund is usually involved in the forward prices and sells shares according to the net value of the next day. Value at 4:00 am. Eastern Standard Time (EST) as common to most of these funds. If the investor shares this fund before 4:00 am. EST price Time, the investor will receive that day a net value price of assets for stocks. If the investor buys a sharing fund after 4:00 hours.However, the EST price time will receive a net value for shares the next day.

In some markets, investment companies are obliged to use legal prices. For example, in the United States, the investment companies, subscriber and traders require the Commission for Securities and Stock Exchange (SEC) to use the prices in advance when purchasing or selling shares in a mutual open end. If you do not use a contract for the wreckage, it may result in significant civil and criminal penalties for the fund.

Late trading is a practice to enable investors to acquire a previous density after the time of the price of the fund. This practice is illegal in some countries. Suppose, for example, that a favorite buyer will place an order after 4:00 hours of the fund. Time of prices est. If the investment fund manager gives the buyer a stock price calculated before 4:00. Est, he or she is involved in late businessor. Late trading can provide late traders the opportunity to earn events that occur after prices at the expense of long -term fund investors. Involvement in late trading is often considered to be a violation of the fund administrator's trust and its shareholders.