Cryptocurrency Q&A
Why do shares trade at a discount to NAV?
Why do shares trade at a discount to NAV?
CherryBlossomBloom
Wed Jan 01 2025
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7 answers
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I'm wondering why shares sometimes trade at a lower value compared to their Net Asset Value (NAV). What factors could possibly contribute to this discount?
7 answers
SejongWisdom
Fri Jan 03 2025
When the share price is lower than the NAV, it implies that investors can potentially acquire assets at a bargain.
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HallyuHype
Fri Jan 03 2025
When the share price falls below the NAV per share, it indicates a specific market condition.
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Emanuele
Fri Jan 03 2025
This condition is referred to as the investment trust trading at a discount.
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BonsaiVitality
Fri Jan 03 2025
A discount in this context signifies that the market value of the shares is less than their intrinsic value.
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ShintoSanctuary
Fri Jan 03 2025
The NAV, or Net Asset Value, represents the total value of the assets held by the investment trust minus its liabilities, divided by the number of shares outstanding.
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