# Net Asset Value (NAV)

*Saving & Investing — Finicade finance glossary*

NAV is a fund's assets minus liabilities divided by shares outstanding — the per-share value of what it actually owns. Mutual funds transact at NAV once a day after the close. ETFs and closed-end funds trade continuously on an exchange, so their market price can drift above NAV (a premium) or below it (a discount); ETF arbitrage keeps that gap tiny, while closed-end funds can trade at double-digit discounts for years.

**Formula:** `NAV = (Assets − Liabilities) ÷ Shares outstanding`

**Also known as:** NAV, net asset value per share

**Related terms:** [Mutual Fund](https://finicade.com/glossary/mutual-fund), [ETF (Exchange-Traded Fund)](https://finicade.com/glossary/etf), [Closed-End Fund](https://finicade.com/glossary/closed-end-fund), [Book Value](https://finicade.com/glossary/book-value)

Source: https://finicade.com/glossary/net-asset-value