Quotations of Small Mutual Funds Now Available to Investors
Washington, D.C.--The Securities and Exchange Commission approved a rule change submitted by the National Association of Securities Dealers (NASD) that will allow the inclusion of approximately 1,400 small mutual funds and money market funds in the Mutual Fund Quotation Service. The Mutual Fund Quotation Service provides for the collection and dissemination of prices of mutual funds. In addition, The Nasdaq Stock Market announced plans to make mutual fund prices available on its Internet site, www.nasdaq.com, in early January, making it easier for investors to track mutual fund prices. The prices will be updated daily.
The Nasdaq Stock Market disseminates two lists daily containing the net asset values of over 5,000 mutual funds. The News Media List, which is not being amended by this rule change, consists of data for approximately 5,500 funds. The Supplemental List, which is being amended, is distributed to more than 280,000 Nasdaq Level 1 terminals and contains data for more than 450 mutual funds.
Funds that do not qualify for the News Media List can apply for listing on the Supplemental List. Formerly, the rules for quotation on the Supplemental List required funds to have 300 fund shareholders at the time of initial application. The amended rule eliminates the shareholder requirement and replaces it with two alternative standards. First, a mutual fund may meet the Supplemental List inclusion standard if the fund has net assets at the time of application of $10 million or more. In the alternative, a fund would qualify regardless of net assets or shareholder members if it has operated for two full years.
The Nasdaq Stock Market will begin accepting applications for inclusion in the Supplemental List beginning February 3, 1997.