5

In both cases, the per-share dollar amount of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding.

Quoted from http://www.investopedia.com/terms/n/nav.asp

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  • This is about meaning-in-context, and is completely on-topic.
    – DCShannon
    May 25 '15 at 1:53
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It means "minus any liabilities," or "after subtracting any liabilities." In other words,

( total_securities − liabilities ) / outstanding_fund_shares

It functions as a preposition modifying "the total value of all the securities in its portfolio." See http://en.wiktionary.org/wiki/less#Preposition

Credit to FumbleFingers for the more succinct phrasing.

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  • 2
    More succinctly, less = minus (as a mathematical operand). The cited extract is really just an extended text representation of the formula per-share amount = (total value − liabilities) / number of shares. May 24 '15 at 17:04
  • It's my first guess but I can't find a related definition in the dictionary. It is a verb here? May 25 '15 at 0:45
  • @AwQiruiGuo Not a verb -- it functions as a preposition modifying "the total value of all the securities in its portfolio." en.wiktionary.org/wiki/less#Preposition May 25 '15 at 1:11

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