Net Asset Value (NAV) Is Determined by

question 58

Multiple Choice

Net asset value (NAV) is determined by

• A) the total market value of all its assets multiplied by the number of fund shares outstanding.
• B) the total market value of all its assets divided by the number of fund shares outstanding.
• C) the total market value of all its assets divided by the number of shareholders.
• D) supply and demand for the investment company stock in the secondary market.
• E) supply and demand for the investment company stock in the primary market.

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Definitions:

Inventory

The raw materials, work-in-progress products, and finished goods that a company holds for the purpose of sale in the near future.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of income, or legal jurisdiction.

Noncontrolling Interest

A minority ownership in a subsidiary, where the parent company owns the majority but not all of the subsidiary's shares.

Treasury Stock Approach

A method of accounting for repurchased shares of stock by reducing the total available shares in the market, often affecting the calculation of earnings per share and other metrics.