Open End Investment Companies

When you look at the Bid or Ask of any security that is referred to as the

"Quote".

Maximum sales loads under the FINRA is

8 1/2%.

Maximum sales loads under the Investment Act of 1940 is

9%.

If customer wants to purchase a security, they will purchase the security at the

ASK.

If customer wants to sell a security, the sell at the

BID.

Forward Pricing - the accumulation of orders that will be executed at the close of the Mkt.

Forward Pricing is required when buying or selling shares.

Asking price is the price a customer might pay.

It is calculated using the worst case scenario (the maximum sales load) & does not take into consideration [breakpoint discount] amounts & sales load reductions.

Forward Pricing: Investors get the next calculated BID or ASK price as of the

Mkt close after the order is entered.

Open End Investment Companies is also a called

Mutual Fund.

ASK =

NAV + Max Sales Load = Offering Price

BID =

NAV = Redemption Price

NAV is

Net Asset Value.

NAV per share =

Total assets of the fund - Total liabilities ÷ Total # of Shares Outstanding.

A no-load fund is

a mutual fund which does not charge a sales load. The BID & ASK price are the same price.

Whenever you buy an Open-end Investment Company you are

always buying newly issued shares.

An increase in the NAVE is best described as

appreciation.

ASK price is calculated daily

at the close of the NYSE. Usually the highest possible price that could be charged to the customer.

Many investors will buy a mutual fund for less than it's quoted ASK price

because many investors qualify for a discount in the sales load.

NAV relates directly to the

bid & ask price.

Mutual Fund's capitalization is constantly

changing, because shares are issued & redeemed daily, thus they are regulated under the '33 Act Prospectus Delivery Regulations.

NAV reflects the

closing Mkt value of all securities + any interest or dividend received on the securities on the portfolio

The ASK price is normally

higher than the BID price.

When an Open End Company has "Net Redemptions,"

it means that more investors are redeeming [selling] their shares than purchasing [buying] new shares.

The more money you invest at 1 time, the

lower the sales load will be that the customer has to pay.

Mutual funds are not

publicly traded in the Secondary Market.

Open End Investment Companies issue only

redeemable shares and may only issue voting common shares.

When an investor enters an order for a mutual fund,

that order will not be executed until the close of the NYSE. No new orders for that day can be accepted.

The Broker-Dealer could accept orders from customers after the Mkt closes but

those orders rec'd after the close of the Mkt will begin the accumulation for the following day.

When an investor redeems their shares back to the fund,

those shares are retired.

NAV per share equals the

total assets of the fund less the total liabilities divided by the total number of shares outstanding.

When you buy newly issued shares

you have to receive a Prospectus.