Which term represents the price of a mutual fund or ETF at the end of the trading day, calculated as Assets minus Liabilities divided by the number of shares?

• A. Net Asset Value (NAV)
• B. Expense Ratio
• C. Exchange Traded Fund (ETF)
• D. Cryptocurrency

Answer: (A)

Net Asset Value represents the price per share of a mutual fund or ETF at the end of the trading day. It is calculated by taking the fund’s total assets minus its total liabilities, then dividing by the number of shares outstanding. This figure reflects the actual value of the fund’s underlying holdings after obligations are subtracted and is the price used to close the mutual fund’s or ETF’s daily share price. For mutual funds, trades execute at this end-of-day NAV. ETFs, while they trade on an exchange throughout the day, also publish an NAV, which serves as a reference value for the fund’s underlying assets and helps explain why the ETF’s market price may deviate intraday due to supply and demand. The other options don’t describe this price measure: the expense ratio is a fee, not a price per share; ETF refers to the fund structure itself, not its end-of-day price; cryptocurrency is unrelated to the NAV of traditional funds.