Quotes and Best Execution: Rapid Fire

What this video covers

• Why a rep can never quote an exact execution price for an open-end mutual fund at order entry, and how forward pricing fills at the next net asset value (NAV) struck after receipt
• The two prices open-end funds quote once daily: NAV as the bid and public offering price (POP) as the ask, and when POP equals NAV
• How the 4:00 PM Eastern Time cutoff applies to firm receipt time, not transmission time to the fund, and why a 3:58 PM call gets today's NAV even if routed at 4:15 PM
• The critical exam distinction between late trading (fraud: knowingly filling post-4:00 PM at today's NAV) and market timing (prospectus-policy violation: rapid trading to exploit stale NAVs)
• Why best execution for mutual funds means prompt routing through Fund/SERV, not price comparison, and why share-class selection and breakpoint capture are separate sales-practice duties
• When interpositioning is prohibited, the burden of proof required to justify it, and the fact that a customer cannot cancel an executed open-end fund order
• The penny-stock definition (unlisted equity under $5), the exchange-listing exemption, and the two-part compensation disclosure (oral or written before the trade, written at or before confirmation) plus the three-year recordkeeping requirement with first two years easily accessible