Outline the Process of Administrative Rule Making, and Provide an Example

question 8

Essay

Outline the process of administrative rule making, and provide an example of its use.

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Definitions:

NAV

Net Asset Value, the per-share value of a mutual fund or exchange-traded fund, calculated by dividing the total value of all the securities in the portfolio by the number of shares outstanding.

Premium/Discount

Refers to the amount by which the market price of a bond exceeds (premium) or is less than (discount) its face value.

Front-end Load

A sales charge or commission paid by an investor at the initial purchase of mutual fund shares, usually used to compensate brokers or sales agents.

NAV

Net Asset Value, the total value of a fund's assets minus its liabilities, divided by the number of shares outstanding.