Editing Net asset value (section)

{{Short description|Net value of an entity calculated as total value of its assets minus value of liabilities}}
{{refimprove|date=April 2008}}
'''Net asset value''' ('''NAV''') is the value of an entity's [[asset]]s minus the value of its [[Liability (financial accounting)|liabilities]], often in relation to [[open-end fund|open-end]], [[mutual fund|mutual]] funds, [[Hedge fund|hedge funds]], and [[Venture capital|venture capital funds]].<ref>{{Cite web |title=Net Asset Value |url=https://corporatefinanceinstitute.com/resources/valuation/net-asset-value/ |access-date=2022-12-21 |website=Corporate Finance Institute |language=en-US}}</ref><ref>{{Cite web |title=Net Asset Value {{!}} Investor.gov |url=https://www.investor.gov/introduction-investing/investing-basics/glossary/net-asset-value#:~:text=%22Net%20asset%20value,%22%20or,NAV%20will%20be%20$90%20million |access-date=2022-12-21 |website=www.investor.gov}}</ref> Shares of such funds registered with the [[U.S. Securities and Exchange Commission]] are usually bought and redeemed at their net asset value.<ref>{{Cite web |title=Net Asset Value {{!}} Investor.gov |url=https://www.investor.gov/introduction-investing/investing-basics/glossary/net-asset-value |access-date=2023-01-03 |website=www.investor.gov}}</ref> It is also a key figure with regard to [[hedge fund]]s and [[venture capital fund]]s when calculating the value of the underlying investments in these funds by investors. This may also be the same as the [[book value]] or the [[shareholders' equity|equity]] value of a business. Net asset value may represent the value of the total equity, or it may be divided by the number of [[shares outstanding]] held by investors, thereby representing the net asset value ''per share''.<ref>{{cite web |url=http://www.raymondjames.com/gloss.htm#n |author=Raymond James |title=Glossary of Investment Terms |date= August 9, 2011 |publisher=raymondjames.com}}</ref>