SIE STC USA Greenlight Exam 1 Practice 2026 - Free SIE Practice Questions and Study Guide

To determine the public offering price (POP) of an open-end investment company, you need to calculate it based on the net asset value (NAV) and the sales charge. The sales charge is typically applied as a percentage of the public offering price.

In this case, the NAV is $22.20, and there is an 8% sales charge. The formula to find the POP is:

\[

POP = \frac{NAV}{1 - Sales Charge}

\]

Substituting the given values into the formula:

\[

POP = \frac{22.20}{1 - 0.08}

\]

\[

POP = \frac{22.20}{0.92}

\]

\[

POP \approx 24.13

\]

This calculation shows that the public offering price, after including the sales charge, is approximately $24.13. This reflects the total price that an investor must pay to purchase shares of the open-end investment company, which includes both the NAV and the associated sales charge.