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what is net asset value equation. The term net asset value is commonly used in relation to mutual funds and is used to determine the value of the assets held. Net Asset Value Per Share Market Value of all Securities Held Cash and Cash Equivalents - Liabilities Number of Shares Outstanding You can find these numbers on a companys financial statements.
Net Asset Value Per Share Market Value of all Securities Held Cash and Cash Equivalents - Liabilities Number of Shares Outstanding You can find these numbers on a companys financial statements. The premise of grouping in this manner is to minimize risk by diversifying. The term net assets comes from the accounting equation.
Net Asset Value Explained Net Asset Value NAV is the value of an entitys assets minus its liabilities divided by outstanding shares.
The premise of grouping in this manner is to minimize risk by diversifying. According to the SEC mutual funds and Unit Investment Trusts UITs are required to calculate their NAV. Net Asset Value Explained Net Asset Value NAV is the value of an entitys assets minus its liabilities divided by outstanding shares. As you can see the assets of a company are equal to the liabilities and owners equity.