he POP or Public Offering Price is the price paid by an investor to purchase open end mutual fund shares. The POP is also the price set for a security the first time it is sold to the investing public through initial public offerings or IPOs. On your exam the public offering price will most likely be used in the context of an open end mutual fund .
Applying "Public Offering Price" to Securities Exams:
Open end mutual funds are priced by formula. The POP / Public Offering Price is the price an investor must pay to purchase mutual fund shares. The POP is the sum of the net asset value and the sales charge an investor must pay to invest.. The formula for determining the POP is NAV + SC = POP. The sales charge is added to the mutual fund’s net asset value to determine the POP or public offering price. The maximum allowable sales charge for a mutual fund is 8.5 percent of the POP or of the total amount invested. You are likely to see a good number of questions on your exam dealing with mutual funds including questions relating to the pricing of open end shares. Be sure you are ready to pass your exam with our GreenLight money back pass guarantee.