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Glossary

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There are 3 names in this directory beginning with the letter N.
Nasdaq
Nasdaq, also known as The Nasdaq Composite Index, is a market-capitalization-weighted index that measures the performance of 2,500+ equities in the market. Its index composition is heavily weighted toward information-technology equities, which has led it to be considered as a stand-in for the technology sector. Watch Video

 

NAV
The Net Asset Value is the total value of a company’s assets minus its total liabilities. It is referred to as the net value of the company and is most often used in the context of mutual funds or ETFs where the NAV price represents the share price of a fund. Watch Video

 

Net Asset Value Price
Net Asset Value price, also known as NAV price is calculated by subtracting total liabilities from total assets of security and dividing the result by the number of shares outstanding. This calculation gives the net value of the security per share.

NAV price is most commonly used in the context of mutual funds where it is the price/share at which investors buy, and sell fund shares . The buying price is known as the “bid price” and the selling price is known as the “redemption price”. For mutual funds, this NAV price is calculated at the end of each trading day based on the closing market price of the portfolio's securities. Watch Video