Final answer:
The redemption value of an open-end investment company's shares is based on the Net Asset Value (NAV) computed after the order is received.
Step-by-step explanation:
The redemption value of an open-end investment company's shares is based on the Net Asset Value (NAV) computed after the order is received.
Open-end investment companies, also known as mutual funds, calculate the NAV at the end of each trading day by subtracting the fund's liabilities from its assets and dividing the result by the number of outstanding shares. This NAV serves as the basis for determining the redemption value of shares when investors sell them back to the company.
The redemption value will equal the number of shares being redeemed multiplied by the NAV at the time of redemption.