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net asset value Definition

net asset value

noun

the value of a mutual fund share, determined by dividing the net assets of the fund by the number of shares issued

net asset value (NAV) Finance Definition
  1. Effectively, the price of one share in a mutual fund. NAV is calculated by taking the market value of the fund’s securities, subtracting liabilities, and dividing by the number of shares outstanding. As prices of the securities rise or fall, so does the net asset value.
  2. The book value of a company’s different types of assets.