Backward Pricing
Backward pricing is a historical open-end fund method that executes an order at a NAV calculated before receipt, creating stale-price and dilution risk.
Forward and backward pricing, offer price, and breaking-the-buck concepts used to interpret fund share transactions and valuation events.
Fund Pricing Events and Offer Prices terms explain how funds calculate value, report performance, quote yields, handle flows, and trade at premiums or discounts to portfolio value.
Use this branch when the key issue is NAV, per-share value, offer price, historical performance, yield reporting, fund flows, or liquidity pressure.
| Term | Use it for |
|---|---|
| Backward Pricing | Historical use of a NAV computed before order receipt and the resulting shareholder-dilution risk. |
| Breaking the Buck | A fund valuation, performance, yield, flow, or market-price term. |
| Forward Pricing | Current U.S. open-end fund framework that uses the NAV next computed after an order is received. |
| Offer Price | A fund valuation, performance, yield, flow, or market-price term. |
Check valuation time, portfolio inputs, stale or illiquid holdings, bid-ask spread, premium or discount, yield formula, distribution policy, flow pressure, and whether performance is before or after fees.
This page is educational and does not recommend a specific fund, security, tax treatment, or account choice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Backward pricing is a historical open-end fund method that executes an order at a NAV calculated before receipt, creating stale-price and dilution risk.
Event in which a stable-NAV money market fund can no longer maintain its one-dollar share price and must reprice below one dollar.
Open-end fund pricing method that processes purchase and redemption orders using the net asset value next calculated after the fund or authorized intermediary receives the order.
Mutual fund public offering price paid to purchase shares, generally equal to the next calculated NAV plus any applicable front-end sales charge.