Net asset value: Difference between revisions

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Revision as of 00:13, 11 March 2021

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{{refimprove|date=April 2008}}

'''Net asset value''' ('''NAV''') is the value of an entity's [[asset]]s minus the value of its [[Liability (financial accounting)|liabilities]], often in relation to [[open-end fund|open-end]] or [[mutual fund|mutual]] funds, since shares of such funds registered with the [[U.S. Securities and Exchange Commission]] are redeemed at their net asset value. It is also a key figure with regardwitregard to [[hedge fund]]s and [[venture capital fund]]s when calculating the value of the underlying investments in these funds by investors. This may also be the same as the [[book value]] or the [[shareholders' equity|equity]] value of a business. 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''.<ref>{{cite web |url=http://www.raymondjames.com/gloss.htm#n |author=Raymond James |title=Glossary of Investment Terms |date= August 9, 2011 |publisher=raymondjames.com}}</ref>

==Generally==