Series 7 Exam Prep 36, Mutual Fund Structure and NAV
About this episode
This episode covers the structure of mutual funds and the concept of Net Asset Value (NAV) as part of Series 7 exam preparation.
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Open-end mutual funds continuously issue and redeem shares directly with investors. - All mutual fund orders are subject to the forward pricing rule, executing at the Net Asset Value (NAV) calculated after the order is received, typically at the 4:00 PM market close. - Investors buy load fund shares at the Public Offering Price (POP), which is the NAV plus a sales charge, and redeem their shares at NAV. - The prospectus must be delivered to investors at or before the sale, while the more detailed Statement of Additional Information (SAI) is available only upon request. - Mutual funds cannot be traded intraday because their price is set only once per day, unlike exchange-traded closed-end funds or stocks. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel…
More episodes of Open Exam Prep
- Series 7 Exam Prep 44, Long Calls and Long Puts
- Series 7 Exam Prep 43, Options Contract Basics
- Series 7 Exam Prep 42, Variable Life and Insurance Products
- Series 7 Exam Prep 41, Variable Annuity Suitability and Exchanges
- Series 7 Exam Prep 40, Variable Annuities Basics
- Series 7 Exam Prep 39, ETFs, Closed-End Funds, and UITs
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