enabling a variety of information to be calculated and produced including the net asset value per share. Open-ended funds Net asset value is commonly used in the context of open-end funds. Shares and interests in such funds are not traded between investors, but are issued by the fund to each new investor and redeemed by the fund when an investor withdraws. A fund will issue and redeem shares and interests at a price calculated by reference to the NAV of the fund, with the intention that new investors receive a fair proportion of the fund and redeeming investors receive a fair proportion of the fund's value in cash. For example, if a fund has a NAV of $200 million and 1 million shares in issue on a certain day, the "NAV per share"—the price at which shares are issued—is $200. A person investing $40 million on that day will therefore be given 200,000 shares. Immediately following their investment the total NAV of the fund will be $240 million, as the new investor's cash becomes part of the fund and is available for investment by the fund. The investor will then be entitled to 1/6 of whatever the fund's value is when they withdraw their investment, if in the meantime their 1/6 ownership is not altered by any further withdrawals or investments to the fund. The valuation of the assets and liabilities of an open-ended fund is therefore very important to investors. If the NAV in the above example had, with the same assets, been calculated as $160 million (and the NAV per share as $160), the investor would have been given 250,000 shares and would become entitled to 1/5 of the fund's value. In contrast, closed-end funds are traded in the open market between investors, bought and sold at market prices and not based on NAV. So the price of shares or interests in a closed-end fund will be whatever the parties agree it to be, which may not correspond to the fund's NAV. Publicly traded shares in such funds generally trade at a price below NAV. Mismarking Mismarking in securities valuation takes place when the value that is assigned to securities does not reflect what the securities are actually worth, due to intentional fraudulent mispricing. Mismarking misleads investors and fund executives about how much the securities in a securities portfolio managed by a trader are worth (the securities' net