Net Asset Value

Business, Legal & Accounting Glossary

Definition: Net Asset Value


Net Asset Value

Video Guide For Net Asset Value




What is the dictionary definition of Net Asset Value?

Dictionary Definition


Net Asset Value (NAV) of a financial entity is the value of its total assets minus its total liabilities. For open-ended funds, such as mutual funds, NAV is divided by the number of outstanding shares, which yields the net asset value per share. The NAV per share is calculated and published daily since it determines the price investors will pay for shares of a fund.


Full Definition of Net Asset Value


Net asset value (NAV) refers to the assets of a financial entity minus its liabilities. For funds and trusts, net asset value is quoted on a per-share or per-unit basis. Net asset value is calculated as the portfolio value minus any debts, divided by the number of shares or units outstanding. When selling a fund investment, the price is based on net asset value minus any redemption or deferred sales fees.

The SEC requires mutual funds and investment trusts to recalculate net asset value at least once a day. This is typically done after the major markets close. Being publicly traded, closed-end funds are exempt from daily reporting of net asset value. The net asset value of major mutual funds is reported much like stock prices, and can be found in the financial section of many newspapers.


Synonyms For Net Asset Value


NAV


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Definition Sources


Definitions for Net Asset Value are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 13th April, 2022 | 0 Views.