Net asset value

NAVNet Asset Value (NAV)book valuenet asset positionnet asset worthnet assets valuenet equityprice of mutual funds
Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S.wikipedia
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Mutual fund

mutual fundsfundmutual
Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net asset value. The NAV of a collective investment scheme (such as a U.S. mutual fund or a hedge fund) is calculated by reference to the total value of the fund's portfolio (its assets) less its accrued liabilities (money owed to lending banks, fees owed to investment managers and service providers and other liabilities).
Early U.S. funds were generally closed-end funds with a fixed number of shares that often traded at prices above the portfolio net asset value.

Book value

carrying valuecarrying amountNet Book Value
This may also be the same as the book value or the equity value of a business.
In the United Kingdom, the term net asset value may refer to the book value of a company.

Open-end fund

open-endedopen-endopen-ended funds
Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net asset value.
The price at which shares in an open-ended fund are issued or can be redeemed will vary in proportion to the net asset value of the fund and so directly reflects its performance.

Closed-end fund

closed-endclosed-endedclosed end funds
In contrast, closed-end funds are traded in the open market between investors and so the price of shares or interests in a closed-end fund will be whatever the parties agree it to be, which may not correspond to the fund's NAV.
The price per share is determined by the market and is usually different from the underlying value or net asset value (NAV) per share of the investments held by the fund.

Hedge fund

hedge fundshedge fund managerhedge-fund
The NAV of a collective investment scheme (such as a U.S. mutual fund or a hedge fund) is calculated by reference to the total value of the fund's portfolio (its assets) less its accrued liabilities (money owed to lending banks, fees owed to investment managers and service providers and other liabilities).
The value of an investor's holding is directly related to the fund net asset value.

Investment fund

collective investment schemeinvestment fundsinvestment vehicle
The NAV of a collective investment scheme (such as a U.S. mutual fund or a hedge fund) is calculated by reference to the total value of the fund's portfolio (its assets) less its accrued liabilities (money owed to lending banks, fees owed to investment managers and service providers and other liabilities).
The net asset value or NAV is the value of a vehicle's assets minus the value of its liabilities.

Valuation (finance)

valuationinvestment analysisvaluations
There is no universal method or basis of valuing assets and liabilities for the purposes of calculating the net asset value used throughout the world, and the criteria used for the valuation will depend upon the circumstances, the purposes of the valuation and any regulatory and/or accounting principles that may apply.
This method is known as the net asset value or cost method.

Real estate investment trust

REITReal Estate Investment TrustsREITs
NAV is one of the valuation indices of real estate investment trusts (REITs, pronounced "Reets").
The key statistics to examine the financial position and operation of a REIT are net asset value (NAV), funds from operations (FFO), and adjusted funds from operations (AFFO).

Assets under management

AUMassetsunder management
Assets under management
* Net asset value

Asset

assetstotal assetstangible asset
Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net asset value.

Liability (financial accounting)

liabilitiesliabilitydebt
Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net asset value.

U.S. Securities and Exchange Commission

SECSecurities and Exchange CommissionSecurities and Exchange Commission (SEC)
Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds, since shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net asset value.

Equity (finance)

equityshareholders' equityequity capital
This may also be the same as the book value or the equity value of a business.

Shares outstanding

outstanding sharesoutstanding stockoutstanding
Net asset value may represent the value of the total equity, or it may be divided by the number of shares outstanding held by investors, thereby representing the net asset value per share.

Fund accounting

general fundfundgovernmental fund
Net asset value and other accounting and recordkeeping activities are the result of the process of fund accounting (also known as securities accounting, investment accounting, and portfolio accounting).

New York Stock Exchange

NYSENew YorkNew York Stock Exchange (NYSE)
For example, for U.S.-registered open-ended funds, investments are commonly valued each day the New York Stock Exchange is open, using closing prices (meant to represent fair value), typically 4:00 p.m. Eastern Time.

Eastern Time Zone

Eastern (EST)ESTEDT
For example, for U.S.-registered open-ended funds, investments are commonly valued each day the New York Stock Exchange is open, using closing prices (meant to represent fair value), typically 4:00 p.m. Eastern Time.

Share (finance)

sharessharestock
Shares and interests in such funds are not traded between investors, but are issued by the fund to each new investor and redeemed by the fund when an investor withdraws.

Partnership

partnerpartnershipspartners
Shares and interests in such funds are not traded between investors, but are issued by the fund to each new investor and redeemed by the fund when an investor withdraws.

Portfolio (finance)

portfolioinvestment portfolioportfolios
The NAV of a collective investment scheme (such as a U.S. mutual fund or a hedge fund) is calculated by reference to the total value of the fund's portfolio (its assets) less its accrued liabilities (money owed to lending banks, fees owed to investment managers and service providers and other liabilities).

Public company

Publicpublicly tradedpublicly traded company
Publicly traded shares in such funds generally trade at a price below NAV. Turning to operating companies as opposed to investment companies (mutual funds), in determining whether shares in a public company are a cheap or expensive investment, one tool used by investors is a comparison of the company's current market capitalization (being the price at which the market values the company) with its NAV.

Investment

investmentsinvestingcapital investment
Turning to operating companies as opposed to investment companies (mutual funds), in determining whether shares in a public company are a cheap or expensive investment, one tool used by investors is a comparison of the company's current market capitalization (being the price at which the market values the company) with its NAV.

Market capitalization

market capitalisationmarket capcapitalization
Turning to operating companies as opposed to investment companies (mutual funds), in determining whether shares in a public company are a cheap or expensive investment, one tool used by investors is a comparison of the company's current market capitalization (being the price at which the market values the company) with its NAV.

Liberty Media

Liberty Media CableLiberty Media CorporationLiberty Broadband Corporation
For example, analysts and management estimated that Liberty Media Corporation was trading for 30-50% below its net asset value (or "core asset value") in June 2007.

Going concern

forevergoing-concern
Where a company's market value is lower than its NAV, it may be considered more profitable to wind the company down and sell off its assets individually rather than continue to run it as a going concern.