The __________________________ is found by subtracting the liabilities of the mutual fund from the market value of the securities that the fund owns and dividing the difference by the outstanding number of shares.

Question

Quizplus · Accepted Answer

Net asset value (NAV) is calculated by subtracting the liabilities of a mutual fund from the market value of the securities it holds and dividing the result by the outstanding number of shares. This calculation gives an idea of what each share of the fund is worth. A mutual fund's NAV is calculated at the end of each trading day. This value is then used to determine the price at which investors can buy or sell shares. Open-end value, closed-end value, and load value are not relevant terms in this context.

The __________________________ Is Found by Subtracting the Liabilities of the Mutual