Definition of forward pricing

method of pricing used by open-end investment companies. The share price is always determined by the Net Asset Value of the outstanding shares, and all incoming buy and sell orders are based on the next net asset valuation of fund shares. For example, when a mutual fund receives money from an investor, it calculates the number of shares the investor acquires based on their next computation of net asset value.

Securities and Exchange Commission requirement that open-end investment companies, whose share price is always determined by the Net Asset Value of the outstanding shares, base all incoming buy and sell orders on the next net asset valuation of fund shares.