# What is Net Asset Value (NAV)?

The Yieldstreet Prism Fund allows investors to have exposure to numerous alternative asset classes with just a single investment allocation. The Fund is also the first Yieldstreet investment product that is available to all investors (regardless of net worth or accreditation status). But, unlike Yieldstreet’s single asset class offerings, when investing in the Fund, you’re purchasing shares in what is known as a Closed-End Fund (CEF). In order to calculate the per-share value of the Fund, we’ll be using what is known as Net Asset Value (NAV). Let’s take a closer look at NAV, how it is used, and how it will relate to the Yieldstreet Prism Fund.

## How is NAV determined?

NAV is determined by dividing the difference between a fund’s total assets and liabilities by the number of outstanding shares.

As a formula, NAV is represented as:

NAV = (Assets – Liabilities) / Total number of outstanding shares

For the Yieldstreet Prism Fund, the NAV will be determined on at least a quarterly basis, as well as when the Fund is reopened for shareholder subscriptions.

## What’s the difference between a share price and a NAV?

A share price is what people buy and sell shares for on an open market. For example, when you purchase stock in a company, the share price of a stock may rise and fall continuously throughout the day. The NAV price of a fund, however, is the per-share value of a fund’s assets (minus its liabilities) and is not continuously recalculated throughout the day. As we mentioned above, the NAV for the Yieldstreet Prism Fund will be determined on at least a quarterly basis.

## Why will the NAV of the Yieldstreet Prism Fund matter going forward?

NAV is essentially the value at which investors can buy shares of the Fund. For the Yieldstreet Prism Fund, shares won’t be traded on an open market, therefore the NAV will be calculated as the fair value for the Yieldstreet Prism Fund, allowing investors to purchase shares from the Fund at the determined NAV price. Because the NAV will include accrued interest, the timing of distribution payments has the potential to affect the NAV.

## Will the NAV fluctuate?

Yes the NAV fluctuates with the value of the assets in the Fund and with the income earned by the Fund. But over the long term, the NAV is expected to remain close to its initial value as the Fund expects to distribute income received to shareholders on a quarterly basis.

If you’re looking to learn more about distributions or the distribution rate of the Yieldstreet Prism Fund, please read our article on distribution rates and how they relate to the Yieldstreet Prism Fund.