Series 7 practice questioneasyPackaged Securities 177
The public offering price of a mutual fund share equals:
- Athe previous day closing bid on the exchange
- Bpar value plus accrued interest
- Cnet asset value plus any sales charge✓ Correct answer
- Dmarket value minus the underwriting spread
Explanation
Why C — net 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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