For a mutual fund, what term means the per-share value of its assets minus liabilities?

For a mutual fund, net asset value is the per-share value of its assets minus its liabilities.

A fund calculates NAV by adding the market values of its holdings, subtracting expenses and other liabilities, and dividing the result by the number of shares outstanding. For example, if a fund has $100 million in net assets and 10 million shares, its NAV is $10 per share.

Most mutual funds calculate NAV at least once each business day, typically after the major markets close. Investors in conventional mutual funds generally receive the next calculated NAV rather than a continuously changing intraday price.

NAV differs from the market price of a closed-end fund or exchange-traded fund. Those securities trade between investors on an exchange, so supply and demand can push their market prices above or below the value of the underlying holdings. NAV also differs from a company’s market capitalization, which values its outstanding shares in the stock market.