NAV Or Net Asset Value Of A Company

In any company preferred share holders and corporate debt holders have the right to a series of cash payments. Whatever cash flow remains after payment of these amounts is owned by the common shareholders.

Should common shareholders in the company decide by a majority vote to close out the company, they would own everything that was left after settlement of the amounts owed to the debt holders and preferred stockholders in the company.

Common stock in a compaby has a value which depends on the value of the common shareholders' claims on the company - this is the net asset value of the company.

For more information about NAV or net asset value of a mutual fund check out our website mutualfund NAV

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