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net asset value |
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Definition of net asset valuenet asset valueThe value of all the holdings of a mutual fund, less the fund's liabilities.
Related Terms:Net asset value (NAV)The value of a fund's investments. For a mutual fund, the net asset value per share Closed-end fundAn investment company that sells shares like any other corporation and usually does not Investment trustA closed-end fund regulated by the Investment Company Act of 1940. These funds have a Money market fundA mutual fund that invests only in short term securities, such as bankers' acceptances, Sales chargeThe fee charged by a mutual fund when purchasing shares, usually payable as a commission to Unit investment trustMoney invested in a portfolio whose composition is fixed for the life of the fund. NPV (net present value of cash flows)Same as PV, but usually includes a subtraction for an initial cash outlay. PV (present value of cash flows)the value in today’s dollars of cash flows that occur in different time periods. Acquisition of assetsA merger or consolidation in which an acquirer purchases the selling firm's assets. Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity AssetAny possession that has value in an exchange. Asset/equity ratioThe ratio of total assets to stockholder equity. Asset/liability managementAlso called surplus management, the task of managing funds of a financial Asset activity ratiosRatios that measure how effectively the firm is managing its assets. Asset allocation decisionThe decision regarding how an institution's funds should be distributed among the Asset-backed securityA security that is collateralized by loans, leases, receivables, or installment contracts Asset-based financingMethods of financing in which lenders and equity investors look principally to the Asset classesCategories of assets, such as stocks, bonds, real estate and foreign securities. Asset-coverage testA bond indenture restriction that permits additional borrowing on if the ratio of assets to Asset for asset swapCreditors exchange the debt of one defaulting borrower for the debt of another Asset pricing modelA model for determining the required rate of return on an asset. Asset substitutionA firm's investing in assets that are riskier than those that the debtholders expected. Asset substitution problemArises when the stockholders substitute riskier assets for the firm's existing Asset swapAn interest rate swap used to alter the cash flow characteristics of an institution's assets so as to Asset turnoverThe ratio of net sales to total assets. Asset pricing modelA model, such as the Capital asset Pricing Model (CAPM), that determines the required AssetsA firm's productive resources. Assets requirementsA common element of a financial plan that describes projected capital spending and the Bond valueWith respect to convertible bonds, the value the security would have if it were not convertible Book valueA company's book value is its total assets minus intangible assets and liabilities, such as debt. A Book value per shareThe ratio of stockholder equity to the average number of common shares. Book value Capital asset pricing model (CAPM)An economic theory that describes the relationship between risk and Carrying valueBook value. Cash-surrender valueAn amount the insurance company will pay if the policyholder ends a whole life Conversion valueAlso called parity value, the value of a convertible security if it is converted immediately. Current assetsvalue of cash, accounts receivable, inventories, marketable securities and other assets that Dynamic asset allocationAn asset allocation strategy in which the asset mix is mechanistically shifted in European Monetary System (EMS)An exchange arrangement formed in 1979 that involves the currencies Exchange of assetsAcquisition of another company by purchase of its assets in exchange for cash or stock. Exercise valueThe amount of advantage over a current market transaction provided by an in-the-money Expected valueThe weighted average of a probability distribution. Expected value of perfect informationThe expected value if the future uncertain outcomes could be known Exposure nettingOffsetting exposures in one currency with exposures in the same or another currency, Extraordinary positive valueA positive net present value. Face valueSee: Par value. Financial assetsClaims on real assets. Firm's net value of debtTotal firm value minus total firm debt. Fixed assetLong-lived property owned by a firm that is used by a firm in the production of its income. Fixed asset turnover ratioThe ratio of sales to fixed assets. Future valueThe amount of cash at a specified date in the future that is equivalent in value to a specified Intangible assetA legal claim to some future benefit, typically a claim to future cash. Goodwill, intellectual International Monetary FundAn organization founded in 1944 to oversee exchange arrangements of International Monetary Market (IMM)A division of the CME established in 1972 for trading financial Intrinsic value of an optionThe amount by which an option is in-the-money. An option which is not in-themoney Intrinsic value of a firmThe present value of a firm's expected future net cash flows discounted by the Investment valueRelated:straight value. Liquid assetasset that is easily and cheaply turned into cash - notably cash itself and short-term securities. Liquidation valuenet amount that could be realized by selling the assets of a firm after paying the debt. Loan valueThe amount a policyholder may borrow against a whole life insurance policy at the interest rate Long-term assetsvalue of property, equipment and other capital assets minus the depreciation. This is an Limitation on asset dispositionsA bond covenant that restricts in some way a firm's ability to sell major assets. Market value1) The price at which a security is trading and could presumably be purchased or sold. Market value ratiosRatios that relate the market price of the firm's common stock to selected financial Market value-weighted indexAn index of a group of securities computed by calculating a weighted average Maturity valueRelated: par value. Monetary goldGold held by governmental authorities as a financial asset. Monetary policyActions taken by the Board of Governors of the Federal Reserve System to influence the Monetary / non-monetary methodUnder this translation method, monetary items (e.g. cash, accounts Net adjusted present valueThe adjusted present value minus the initial cost of an investment. Net advantage of refundingThe net present value of the savings from a refunding. Net advantage to leasingThe net present value of entering into a lease financing arrangement rather than Net advantage to mergingThe difference in total post- and pre-merger market value minus the cost of the merger. Net assetsThe difference between total assets on the one hand and current liabilities and noncapitalized longterm Net benefit to leverage factorA linear approximation of a factor, T*, that enables one to operationalize the Net book valueThe current book value of an asset or liability; that is, its original book value net of any Net cash balanceBeginning cash balance plus cash receipts minus cash disbursements. Net changeThis is the difference between a day's last trade and the previous day's last trade. Net errors and omissionsIn balance of payments accounting, net errors and omissions record the statistical Net financing costAlso called the cost of carry or, simply, carry, the difference between the cost of financing Net floatSum of disbursement float and collection float. Net incomeThe company's total earnings, reflecting revenues adjusted for costs of doing business, Net investmentGross, or total, investment minus depreciation. Net leaseA lease arrangement under which the lessee is responsible for all property taxes, maintenance Net operating lossesLosses that a firm can take advantage of to reduce taxes. Net operating marginThe ratio of net operating income to net sales. Net periodThe period of time between the end of the discount period and the date payment is due. Net present value (NPV)The present value of the expected future cash flows minus the cost. Net present value of growth opportunitiesA model valuing a firm in which net present value of new Net present value of future investmentsThe present value of the total sum of NPVs expected to result from Net present value ruleAn investment is worth making if it has a positive NPV. Projects with negative NPVs Net profit marginnet income divided by sales; the amount of each sales dollar left over after all expenses Net salvage valueThe after-tax net cash flow for terminating the project. Net working capitalCurrent assets minus current liabilities. Often simply referred to as working capital. Net worthCommon stockholders' equity which consists of common stock, surplus, and retained earnings. NettingReducing transfers of funds between subsidiaries or separate companies to a net amount. Netting outTo get or bring in as a net; to clear as profit. Non-reproducible assetsA tangible asset with unique physical properties, like a parcel of land, a mine, or a Original face valueThe principal amount of the mortgage as of its issue date. Other current assetsvalue of non-cash assets, including prepaid expenses and accounts receivable, due
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