An investor sends the fund a check for $50,000. If there is no front-end load, calculate the new number of shares and share price. Assume the manager purchases 1,800 shares of stock C, and the rest is held as cash.
With the $50,000, the value of the fund is now $952,380 + 50,000 = $1,002,380. Shares are sold at a price of $119.05, or 50.000/119.05= 420 new shares. There are now 8,420 shares outstanding which is sum of 8000 and 420