The principal underwriter, distributors, or retail dealers were able to engage in reckless trading in connection with the sale of shares because of their ability to choose among two or three days' prices in taking down shares to fill orders from investors. The Investment Company Act empowered the SEC to correct selling practices which might result in dilution of open-end shares or in added costs or in unfair trading profits to insiders and dealers. The net asset value is usually computed twice daily. The determination is made at the close of trading on the New York Stock Exchange each business day and is accomplished by dividing the number of shares outstanding into the company's net worth (the excess of its assets over its liabilities). The net asset value is determined by the appraisal of securities listed on national exchanges and the mean between the bid and asked prices of unlisted securities. The public offering price based on such determination is usually effective from 4:30 p.

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