Net asset value

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Related to Net asset value: book value, Net assets, Net Asset Value Per Share

Net asset value (NAV)

The value of a fund's investments. For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or redemption charge. For a closed-end fund, the market price may vary significantly from the net asset value.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Net Asset Value

In stocks and businesses, an expression of the underlying value of the company. That is, it is a statement of the value of the company's assets minus the value of its liabilities. One way of thinking about the net asset value is that it is the underlying value of a company, not the value dictated by the supply and demand of shares or its market capitalization. It is also called the book value.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Net asset value (NAV).

The NAV is the dollar value of one share of a fund. It's calculated by totaling the value of all the fund's holdings plus money awaiting investment, subtracting operating expenses, and dividing by the number of outstanding shares.

A fund's NAV changes regularly, though day-to-day variations are usually small.

The NAV is the price per share an open-end mutual fund pays when you redeem, or sell back, your shares. With no-load mutual funds, the NAV and the offering price, or what you pay to buy a share, are the same. With front-load funds, the offering price is the sum of the NAV and the sales charge per share and is sometimes known as the maximum offering price (MOP).

The NAV of an exchange traded fund (ETF) or a closed-end mutual fund may be higher or lower than the market price of a share of the fund. With an ETF, though, the difference is usually quite small because of a unique mechanism that allows institutional investors to buy or redeem large blocks of shares at the NAV with in-kind baskets of the fund's stocks.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

net asset value

the asset value of a company to its ordinary shareholders. This consists of the BALANCE SHEET value of total assets (FIXED ASSETS plus CURRENT ASSETS) LESS CURRENT LIABILITIES, DEBENTURES, LOAN STOCK and PREFERENCE SHARES. These net assets can be divided by the number of ordinary shares to indicate the net asset value per share.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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Meezan Cash Fund (MCF): The net asset value of this fund was Rs6.7 billion as on May 31, 2013.
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With a no-load fund, the purchase price of the fund's shares is equal to its "net asset value," or NAV (see page 184).
Generally, the fund's daily accrued costs are netted against the fund portfolio's value (including cash) to determine the fund's net asset value, which then is divided by the number of outstanding shares to arrive at the per-share net asset value, or NAV.
Companies adopting the new release can utilise the integrated auditing tool and calculate net asset value so that market timing trading is eliminated.
Other types of activities are legal but deplorable, such as rapid in and out trading to take advantage of pricing anomalies between the true value of the individual securities held in a mutual fund's portfolio and the formula used to compute net asset value. This practice has been confusingly referred to as "market timing" (the same term used to describe a totally unobjectionable, but difficult, portfolio strategy).
The price of property shares follows the net asset value, usually at a slight discount.
The drop marks the first time that net asset value per share -- the outstanding balance of net assets in a fund divided by the number of investor accounts -- falls below the face value since money management funds (MMFs) were introduced in 1992, according to the Investment Trusts Association.
All brokers must maintain a net asset value of at least 50% of their minimum paid-up capital.
One market consultant specializing in hedge funds identified at least 800 hedge funds, up from about 100 in 1987, and others cite far higher number.(1) Other privately published directories of hedge funds indicate the Soros group of funds alone has about $9 billion of capital and the Tiger group has $6.5 billion of capital (net asset value).
At the end of 2018, Entuity had been the third-largest asset at LMS at 8.2% of net asset value and a carrying value of GBP4.9 million.