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To: robnhood who wrote (2905)7/8/1998 10:47:00 PM
From: Joseph G.  Respond to of 86076
 
<<Many funds have many heads, and can easily mark up a stock for their general benefit.>>
It's perfectly legal in US now. Last Fall SEC allowed mutual funds to use "reasonable assumptions and estimates" to value holdings - they don't have to value "at market" anymore. Though so far they keep it pretty close.
If there is a big inflow some day, they use "reasonable assumption" they're going to buy something tomorrow, and mark it up. If drawdown, mark it down as they're going to sell it tomorrow.