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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Forward Pricing

Definition:

This is an SEC regulation that requires open-end mutual fund companies to price all of their fund's shares at their next Net Asset Value. Investors who want to buy or sell shares in a fund cannot use a previous NAV as the price, so an investor who wants to sell shares on Tuesday morning cannot use Monday's closing NAV; she would have to wait until the NAV is calculated for Tuesday and the sale would transact at that price.