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This page was last updated on May 7, 2001.

Articles by Fund Democracy: Archives

SEC to Mutual Funds: Take Down Your Arbitrage Welcome Signs, TheStreet.com (May 2, 2001)

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Abstract: The Securities and Exchange Commission has finally laid down the law on arbitrage pricing. On April 30, 2001, the SEC issued a letter to the mutual fund industry banning the use of stale prices to calculate fund net asset values.

The letter will help protect fund shareholders against arbitrageurs who buy fund shares at artificially low prices and sell them the next day when prices are raised to reflect the fund portfolio's true value.

Links to related materials:

• SEC 2001 Letter on Mutual Fund Pricing (Apr. 30, 2001)
• SEC 1999 Letter on Mutual Fund Pricing (Dec. 8, 1999)
• SEC Finally Moves to Stop Arbs Who Prey on Foreign Funds, TheStreet.com (Feb. 6, 2001) (article abstract)
• Make 2001 the Year You Become an Activist Fund Shareholder, TheStreet.com (Jan. 2, 2001) (article abstract)
• International Funds Still Sitting Ducks for Arbs, TheStreet.com (July 1, 2000) (article abstract)
• Your International Fund May Have the "Arbs Welcome " Sign Out, TheStreet.com (June 10, 2000) (article abstract)
• Goetzmann, Ivkovich & Rouwenhorst, Day Trading International Mutual Funds: Evidence and Policy Solutions (Oct. 2000)(abstract)

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