Question

The current market value of all the securities a mutual fund owns, less any liabilities, on a per share basis is known as the fund's:

A) Compounded value.
B) Par value.
C) Net asset value.
D) Book value.
E) Liquidation value.

Answer 1

The current market value of all the securities a mutual fund owns, less any liabilities, on a per share basis is known as the net asset value (NAV) of the fund.

Step-by-step explanation:

The current market value of all the securities a mutual fund owns, less any liabilities, on a per share basis is known as the net asset value (NAV) of the fund.

The NAV is calculated by taking the total value of the fund's assets and dividing it by the number of shares outstanding. This value gives investors an idea of how much each share of the mutual fund is worth.

For example, if a mutual fund has $1 million in assets and has issued 100,000 shares, the NAV would be $10 per share.