Mutual Funds
An investor places a mutual fund purchase order at 3:30 PM ET on Tuesday. At what price will the order execute?
Mutual funds use forward pricing. Orders placed before the 4:00 PM ET cutoff execute at that day's closing NAV.
Complete Analysis & Legal Rationale
Mutual funds use forward pricing. Orders placed before the 4:00 PM ET cutoff execute at that day's closing NAV.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Regulatory framework for investment companies including mutual funds (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.