Stock market basics
Net asset value (NAV)
Definition
The value of everything the fund holds, minus its liabilities, divided by its shares. The official NAV is calculated once a day after the close.
Example
Say a fund holds $30.1 million of stocks and cash, owes $100,000 in fees and other bills, and has 1.2 million shares. Its NAV is $30 million ÷ 1.2 million = $25.00 per share. If the fund is an ETF, its market price during the day might be $25.06, a small premium over that NAV.
Hypothetical numbers, for illustration only.
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