From 11:00PM PDT on Friday, July 1 until 5:00AM PDT on Saturday, July 2, the Shmoop engineering elves will be making tweaks and improvements to the site. That means Shmoop will be unavailable for use during that time. Thanks for your patience!
We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

NAV - Net Asset Value

Definition:

The net asset value (NAV) is the per share market value of a mutual fund, i.e., the price at which a mutual fund closes each day. (See: closed end fund.) The NAV can be calculated with this equation:

(total value of shares and cash in a fund – liabilities) / (number of shares outstanding)

The NAV is important when trying to figure out the price per unit of a fund, which is in turn important when comparing different investments.

Example

A fund has $10 million in liabilities, $50 million in shares and cash, and 4 million shares outstanding. The NAV is $10.

Thanks, math.