Forward pricing is implemented when a trade is placed to buy or sell shares of an open-end mutual fund. This occurs because open-end funds only recalculate the net asset value of their mutual fund shares after the market closes each trading day. As a result, any mutual fund order placed by an investor can't be quoted at a previous net asset value price, and must instead be given according to the next computed net asset valuation.
Investment dictionary. Academic. 2012.
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forward pricing — noun Trading of unit trusts on the price to be set at the next valuation (cf ↑historic pricing) • • • Main Entry: ↑forward … Useful english dictionary
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