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Series 7: Investment Information & Recommendations
Series 7 practice questioneasyPackaged Securities 177

The public offering price of a mutual fund share equals:

  1. Athe previous day closing bid on the exchange
  2. Bpar value plus accrued interest
  3. Cnet asset value plus any sales charge✓ Correct answer
  4. Dmarket value minus the underwriting spread
Explanation

Why Cnet asset value plus any sales charge

For a load mutual fund, the POP is the NAV plus the sales charge. Open-end fund shares do not trade intraday on an exchange at negotiated prices.

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