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Definition Of Forward Pricing:


A Securities andExchange Commission regulation that requires thatinvestment companies price all of their buy and sell ordersof fund shares according to the nextnet asset value (NAV).
Thisvaluation process is for open-end mutual fund transactionsin whichthe mutual fund itself is constantly issuing and redeeming mutual fund shares at the most recent NAV per share.Forward pricing is implementedwhen a trade is placed to buy or sell shares of an open-end mutual fund.This occurs because open-end funds only recalculate the net asset value of their mutual fund shares after the market closes each trading day.As a result, any mutual fundorder placed by an investor can't be quoted at a previous net asset value price,and must instead be givenaccording to the next computed net asset valuation.

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