Practice Quiz

FINRA Series 6

Category - Series 6

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Annie Vestor owns shares of the URMoney Mutual Fund. Annie lives on the west coast in Seattle, Washington. URMoney reported a net asset value per share of $10.10 on October 9th. On October 10th, its reported net asset value per share was $10.20. Upon arriving home at 12 P.M. (her time) on October 9th, Annie logged into the URMoney website and entered an order to redeem 500 shares of her holdings in the fund. This order will be transacted at:

  1. the net asset value of the fund at the end of the trading day on October 11th.
  2. $10.20
  3. $10.10
  4. The price at which this order will be transacted cannot be estimated based on the information provided.
Explanation

Answer: C - If Annie, who lives on the west coast, enters an order to redeem 500 shares at 12 P.M. her time on October 9th, the order will be executed at the net asset value calculated at the end of that trading day, which is $10.10. Orders received prior to 4 P.M. Eastern Standard Time (EST) are required to be processed at the net asset value of the fund determined at the end of that some trading day, and 12 P.M. in Seattle is 3 P.M. on the east coast.

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