| the price of a share in a mutual fund, equal to the total value of the fund's securities divided by the number of shares outstanding. Abbreviation: NAV |
| net asset value n. The market value of all securities owned by a mutual fund, minus its total liabilities, divided by the number of shares issued. |
Net Asset Value - NAV
1. In the context of mutual funds, the total value of the fund's portfolio less liabilities. The NAV is usually calculated on a daily basis.
2. In terms of corporate valuations, the book value of assets less liabilities.
Investopedia Commentary
The NAV is usually below the market price because the current value of the fund's assets are higher than the historical financial statements used in the NAV calculation.
Related Links
Mutual Fund Basics Tutorial
See also: Mutual Fund, NAV per share, Outstanding Shares
Also spelled: NAV