Net asset value

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Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end, mutual funds, hedge funds, and venture capital funds.^[1][2] Shares of such funds registered with the U.S. Securities and Exchange Commission are usually bought and redeemed at their net asset value.^[3] It is also a key figure with regard to hedge funds and venture capital funds when calculating the value of the underlying investments in these funds by investors. This may also be the same as the book value or the equity value of a business. Net asset value may represent the value of the total equity, or it may be divided by the number of shares outstanding held by investors, thereby representing the net asset value per share.^[4] NAV gained momentum in REIT 20 years after enactment of Public Law 86-779, signed by President Dwight D. Eisenhower in 1960. This was as a result of its extensive use by Green Street Advisors in 1985.^[5]