Which type of investment company calculates its share price based on the NAV after receiving an order?

An open-end investment company, which includes mutual funds, calculates its share price based on the Net Asset Value (NAV) after receiving an investor's order. This NAV is calculated at the end of each trading day and reflects the total value of the fund's assets minus its liabilities, divided by the number of outstanding shares. When an investor places an order to buy or sell shares, the price they transact at will be based on this daily NAV, ensuring that investors buy or redeem shares at a price that accurately reflects the fund's current value.

In contrast, closed-end investment companies have a fixed number of shares and trade on an exchange like a stock. Their market price can fluctuate based on supply and demand and may not reflect the NAV. Exchange-traded funds (ETFs) also trade on an exchange and their prices can vary throughout the day, based upon market conditions, rather than being solely based on NAV. Lastly, unit investment trusts typically have a fixed portfolio and issue redeemable units, but their pricing mechanisms and structuring differ from those of open-end investment companies.