When you invest in a mutual fund, you purchase shares in the fund at the share price (the NAV or
net asset value) at the close of that day. This NAV is simply calculated by the total value of the
fund's investments and cash on hand, then subtracting any current liabilities and management fees,
then dividing by that number by the number of shares.
The NAV is what one share is worth right now. You don't invest in a mutual fund by buying a
fixed number of shares but rather by a lump dollar sum such as $1,000. If the fund's NAV is $10.00
and you invest $1,000 (after any sales commission or load) the fund would issue you 100 shares.
Since it would be a fluke for the share price to be an exact, even multiple of your investment, you
will be issued some partial shares to make up enough to cover your investment to the penny.