Net Asset Value (NAV)
A fund's per-share value: assets minus liabilities, divided by shares.
What is Net Asset Value (NAV)?
Calculated at the end of each trading day. Mutual fund transactions occur at NAV; ETF market prices hover around NAV but can trade at a premium or discount.
Net Asset Value (NAV): a worked example
$100M assets, $2M liabilities, 5M shares outstanding gives a $19.60 NAV.
More terms in Securities & Instruments
Common Stock
An ownership share in a company, with voting rights and last claim on assets.
Preferred Stock
Equity with a fixed dividend and priority over common, usually without votes.
Bond
A loan to an issuer that pays interest and returns principal at maturity.
Coupon Rate
The bond's stated annual interest as a percentage of par.
Yield to Maturity (YTM)
The total annualized return if you buy today and hold to maturity.
Par Value (Face Value)
The principal repaid at maturity, conventionally $1,000 per bond.
Duration
A bond's price sensitivity to a 1% change in interest rates.
Credit Rating
An agency's assessment of an issuer's likelihood of default.