September 2022

What are discounts and premiums?

Key Points

- The net asset value (NAV) per share is a sum of the total value of assets minus any liabilities, divided by the number of shares

- Buying shares at a discount means you pay less than the NAV; buying them at a premium means you pay more than the NAV

- Scottish Mortgage tries to keep the NAV and share price closely aligned to prevent discounts and premiums from impacting long-term returns