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A major component of the mutual fund scandals of 2003 was the allegation that certain investors were allowed to engage in late trading of mutual fund shares. Under the forward pricing rule (22c-1), trades in US-based, openended mutual funds are required to be priced at the next net asset value per share (NAV) calculated after an order is placed. For funds that calculate NAVs once per day at 4 pm Eastern time (the vast majority), orders must be placed before 4 pm to be priced at the current-day NAV. Late traders who violate this rule can use information revealed after 4 pm to guide their trades, buying fund shares when their current value is greater than NAV and selling when the reverse is true. Doing so allows them to earn expected abnormal returns at the expense of the fund’s long-term shareholders. This paper estimates the extent of late trading by testing whether trades purported to have been placed before 4 …