Bad Title

  

A bad title for an album is Fishbone's 1993 classic "Give a Monkey a Brain and He'll Swear He's the Center of the Universe."

In FinanceLand, a bad title is a title (be it to a house, car, motorcycle, etc.) that does not grant ownership to its holder due to unsatisfied legal or financial problems. Having a bad title can prevent the titleholder from selling the asset.

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Finance: What is Net Asset Value (NAV)?5 Views

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finance a la shmoop what is net asset value or nav nav is how mutual fund

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shares are valued or priced at the end of each trading day take a look at this

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mutual fund right here it has fourteen hundred seventy shares of Google and [mutual funds document]

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three hundred shares of Amazon and five hundred shares of IBM and while you get

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the idea at the end of each day the ask prices in

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the bid-ask spread ie the ask is the price at which somebody will sell these

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shares are added up and yep totaled in this case there are a hundred fourteen

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different names in the portfolio and seven million bucks in cash all of which

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total eighty-two point three million dollars in value at the end of this day

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well there are two million shares outstanding exactly at this moment so

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the nav at today's close well it's eighty two point three million divided

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by two million shares outstanding to get forty one dollars fifteen cents per

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share that 4115 is the nav of the mutual fund and what happens when more

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investors join by you know putting in cash well like let's say somebody

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invests a million dollars at the end of today well then the fund goes from [money lining up in rows]

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having seven million bucks in cash to having eight million bucks in cash and

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that investor just bought 1 million / 4115 4 nav share self that mutual fund

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company printed out of thin air an incremental twenty four thousand

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three hundred one shares bringing its total the two million twenty four

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thousand three hundred one the total value of the fund is now eighty three

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point three million bucks up from yesterday's eighty two point three

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million and the shares outstanding in the fund are now two million twenty four

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thousand three hundred one and yeah the nav didn't change just the shares

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outstanding and it's nav not not pronounced nav although it'd be kind of

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a cool name for a mutual fund anything never like find where you're going nav [tiny red car on map]

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