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Net asset value. Net asset value ( NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end, mutual funds, hedge funds, and venture capital funds. [1] [2] Shares of such funds registered with the U.S. Securities and Exchange Commission are usually bought and redeemed at their net asset value. [3]
Capitalization rate (or " cap rate ") is a real estate valuation measure used to compare different real estate investments. Although there are many variations, the cap rate is generally calculated as the ratio between the annual rental income produced by a real estate asset to its current market value. Most variations depend on the definition ...
Income approach. The income approach is a real estate appraisal valuation method. It is one of three major groups of methodologies, called valuation approaches, used by appraisers. It is particularly common in commercial real estate appraisal and in business appraisal. The fundamental math is similar to the methods used for financial valuation ...
Sales comparison approach. The sales comparison approach ( SCA) is a real estate appraisal valuation method that relies on the assumption that a matrix of attributes or significant features of a property drive its value. For examples, in the case of a single family residence, such attributes might be floor area, views, location, number of ...
The different methods used to calculate cost basis include: First In, First Out (FIFO): The oldest shares you purchased are sold first. It’s the default method used by many brokerages if you don ...
Stepped-up basis. The tax code of the United States holds that when a person (the beneficiary) receives an asset from a giver (the benefactor) after the benefactor dies, the asset receives a stepped-up basis, which is its market value at the time the benefactor dies ( Internal Revenue Code § 1014 (a)). A stepped-up basis can be higher than the ...
Real estate leads as the best long-term investment, according to most Americans in a recent Gallup poll, with 36% of those surveyed choosing real estate over stocks, mutual funds, gold and other ...
Asset allocation. Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame. [ 1] The focus is on the characteristics of the overall portfolio.