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NAV
(Net Asset Value) Put simply, a mutual fund’s share price, but technically the value of a mutual fund’s net assets divided by the number of shares outstanding.
It is calculated at the close of trading, so all of an “open-end” mutual fund’s purchase and sell orders submitted that day are filled at the same price. As “closed-end” mutual funds trade on an exchange, with investor demand determining the price, they may trade at a price higher than the NAV (a “premium”) or lower than the NAV (a “discount”).
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