I understand why you are not allowed to buy mutual finds before the market
closes, but why wont they execute between market close and open next day?
Why make me wait more than 24hrs? What would the harm be? I can buy stock
when the market is open.
bill
--
"BillyGoat" <> wrote in message
news:
> I understand why you are not allowed to buy mutual finds before the market
> closes, but why wont they execute between market close and open next day?
> Why make me wait more than 24hrs? What would the harm be? I can buy
stock
> when the market is open.
> bill
What price should they charge you?
-herb
The nav at market close may not be the same 30 minutes later.
"BillyGoat" <> wrote in message
news:
>I understand why you are not allowed to buy mutual finds before the market
>closes, but why wont they execute between market close and open next day?
>Why make me wait more than 24hrs? What would the harm be? I can buy stock
>when the market is open.
> bill
> --
>
>
>
BillyGoat wrote:
> I understand why you are not allowed to buy mutual finds before the market
> closes,
Huh? I buy (place orders) for MF's before market closes all the time.
It's executed after the market closes and before the next opening.
>but why wont they execute between market close and open next day?
They are executed if you place the order before market closes the day
before.
> Why make me wait more than 24hrs? What would the harm be? I can buy stock
> when the market is open.
MF's are not stocks. If you want to buy MF's like stocks then buy
ETF's.
> bill
> --
"BillyGoat" <> wrote
> I understand why you are not allowed to buy mutual finds before the market
> closes, but why wont they execute between market close and open next day?
> Why make me wait more than 24hrs? What would the harm be?
The harm is that information is released between market close and market
opening the next day that would allow you to avoid normal free market
action.
E.g. suppose a fund has a large position in GE stock. GE has some incredibly
bad news announced at 9 PM EST. It's pretty certain its price will plummet
the next day.
You hear the information at 9 PM EST and order that your mutual fund
position be sold at that day's closing price, when in fact the mutual fund
position will clearly be worth a lot less on the next day's closing price.
Herb's post is trying to steer you to this answer.
> I can buy stock when the market is open.
But you can't buy it between market close on one day and open the next day.
Maybe your question really should be (as Peter is hinting AFAIC): Why aren't
all mutual funds now ETFs?
"Elle" <> wrote
> The harm is that information is released between market close and market
> opening the next day that would allow you to avoid normal free market
> action.
I know you mean well.
BillyGoat wrote:
> I understand why you are not allowed to buy mutual finds before the market
> closes
Yes you can. Who doesn't let you do that?
> but why wont they execute between market close and open next day?
You can't execute mutual funds based on past pricings, you can only
execute on future (unknown) pricings. So if you order after market
close, then you won't get that day's price, you'll get the next
pricing.
> Why make me wait more than 24hrs? What would the harm be?
That was one of the big reasons for the whole mutual fund industry
shakeup.
> I can buy stock when the market is open.
But you can't trade stock at that day's closing price after market
close. When they do after-market trading, they don't trade at closing
price, which is what you're essentially asking for.