Net Asset Value NAV Definition & Meaning | Financial Term | CSIMarket
CSI Market
Sign In | Register

Glossary

Net Asset Value NAV

Financial Term

Net Asset Value (NAV) is a financial metric used to determine the value of an asset or fund. It is calculated by subtracting the liabilities of the asset or fund from its total assets. The NAV per share is then determined by dividing the net asset value by the total number of outstanding shares.

NAV is used extensively in the financial industry, particularly within the mutual fund and exchange-traded fund (ETF) industries. Mutual funds pool investors* money to purchase a diversified portfolio of securities. The NAV is calculated daily and represents the value of each share of the mutual fund. Investors can buy and sell shares at the NAV price.

ETFs are similar to mutual funds, but trade like stocks on stock exchanges. The NAV of an ETF is calculated at the end of each trading day, and the market price of the ETF may fluctuate during the day based on supply and demand.

NAV is also used in the valuation of hedge funds, real estate investment trusts (REITs), and private equity funds. In these industries, the NAV is used to determine the net worth of the fund and the per-share value of the investments.

Overall, the NAV is an important financial metric that provides investors with a snapshot of the value of their investments. It is an essential tool in the financial industry to accurately value investment products and make informed investment decisions.


More Glossary Terms Beginning with N
  • Nanotechnology
    Nanotechnology refers to the development of products and production processes at the molecular level, which is a scale smaller than 100 nanometers (a nanometer is one-billionth of a meter).
    Manufacturing Term Letter: N
  • National Association of Insurance Commissioners NAIC
    An organization of the insurance commissioners or directors of all 50 states, the District of Columbia and the five U.S. territories organized to promote consistency of regulatory practice and statutory accounting standards throughout the United States.
    Insurance Term Letter: N
  • National income NI
    The sum of all incomes, net of consumption of fixed capital (CFC), earned in production. Includes both factor incomes and nonfactor charges. It formerly excluded nonfactor charges.
    Economy Term Letter: N
  • Natural Gas Equivalents
    Oil and NGL volumes are converted to natural gas equivalents using the ratio of one barrel of crude oil, condensate or NGL to 6,000 cubic feet of natural gas.
    Energy Term Letter: N
  • Natural Gas Liquids
    Natural gas liquids, often referred to as NGLs, are both feedstocks used in the manufacture of refined fuels and are products of the refining process. Common NGLs used include propane, isobutane, normal butane and natural gasoline.
    Energy Term Letter: N
  • Natural Gas Liquids NGL
    Liquid hydrocarbons that are extracted and separated from the natural gas stream. NGL products include ethane, propane, butane, natural gasoline and heavier hydrocarbons.
    Energy Term Letter: N
  • NDA or New Drug Application
    When the sponsor of a new drug believes that enough evidence on the drugs safety and effectiveness has been obtained to meet FDAs requirements for marketing approval, the sponsor submits to FDA a new drug application (NDA). The application must contain data from specific technical viewpoints for review, including chemistry, pharmacology, medical, biopharmaceutics, and statistics. If the NDA is app
    Health Care Term Letter: N
  • Net Asset Value NAV
    The value of one share of a mutual fund. NAV is calculated by taking the funds total assets, subtracting liabilities, and dividing by the number of shares outstanding.
    Financial Term Letter: N
  • Net Card Fees
    Represents the charge card membership fees earned during the period. These fees are recognized as revenue over the covered card membership period (typically one year), net of provision for projected refunds for cancellation of card membership.
    Financial Term Letter: N
  • Net domestic product NDP
    The market value of the goods and services produced by labor and property in the United States less the value of the fixed capital used up in production; equal to gross domestic product (GDP) less consumption of fixed capital (CFC). NDP may be viewed as an estimate of sustainable product, which is a rough measure of the level of consumption that can be maintained while leaving capital assets intac
    Economy Term Letter: N
  • Net exports of goods and services
    Exports of goods and services minus imports of goods and services.
    Economy Term Letter: N
  • Net government saving
    The difference between government current receipts and government current expenditures, national income and product accounts.
    Economy Term Letter: N