Mutual Funds
A mutual fund has total assets of $500 million, liabilities of $10 million, and 20 million shares outstanding. What is the NAV per share?
NAV = (Assets - Liabilities) / Shares. Calculated daily at market close.
Complete Analysis & Legal Rationale
NAV = (Total Assets - Liabilities) / Shares Outstanding = ($500M - $10M) / 20M = $490M / 20M = $24.50 per share.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
$24.00 would result from using the wrong calculation.
Matches the verified teaching point in the explanation.
$25.00 ignores the liabilities in the calculation.
$25.50 is not the correct result of this calculation.
Official Standard: Regulatory framework for investment companies including mutual funds (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.