Series 7 - General Securities Representative Exam

Preview Mode

An investor instructs his broker to sell his mutual fund at the POP right away during market hours. What does the broker tell the investor?

You can sell at the POP, but the fund only trades once per day; at 4PM ET
A
You can only sell at the NAV; and the fund trades once per day; at 4PM ET
B
You can sell at the POP or the NAV; just the commission will be different
C
Why would you want to sell at the POP when you can sell at the NAV?
D

Explanations

Investors buy at the POP and sell at the NAV. Mutual funds trade once per day; at 4PM ET; at the published NAV