Financial definitions for business owners N

• Definition Nonrefundable Explain Not permitted, under the terms of an indenture, to be refundable
• Definition Note Explain Debt instruments with initial maturities longer than one year and shorter than 10 years
• Definition Agreement Note Explain A contract for privately placed debt
• Definition Notes to the financial statements Explain following the financial statements in an annual report that explain and expand on the information in the financial statements
• Definition Day Notice Explain A day on which notices of intent to deliver pertaining to a specified delivery month may be issued. Related: Delivery notice
• Definition Sale Of Notice Explain A notice advertising a new issue of municipal securities and inviting underwriters to submit competitive bids
• Definition Date Notification Explain The day the option is either exercised or expires
• Definition Amount Principal Notional Explain In an interest rate swap, the predetermined dollar principal on which the exchanged interest payments are based
• Definition Marche Nouveau Explain An equity market unit of the Paris Bourse that deals solely in innovative, high-growth companies
• Definition Novation Explain Defeasance whereby the firm's debt is cancelled
• Definition Profile Npv Explain A graph of NPV as a function of the discount rate
• Definition Assets Nonreproducible Explain A tangible asset with unique physical properties, like a parcel of land, a mine, or a work of art
• Definition Asset Nonperforming Explain An asset that is not effectively producing income, such as an overdue loan
• Definition Loan Nonproductive Explain but is used in business that does not directly increase the economy's output, such as a leveraged buyout loan
• Definition Normal probability distribution A probability distribution for a continuous random variable that forms a symmetrical bell-shaped curve around the mean. This distribution has no skewness or excess kurtosis.Normal random variableA random variable that has a normal probability distribution.Normal retirementThe age or number of working years after which a pension plan beneficiary can retire and receive unreduced benefits immediately.Normal trading unitSee: Round lot.Normalized earningsEarnings that have been adjusted in order to take into account the effect of cycles in the economy.Normalizing method Making a change in the income account equivalent to the tax savings realized through the use of different depreciation methods for shareholder and income tax purposes, thus washing out the benefits of the tax savings reported as final net income to shareholders.Not a name with usRefers to over-the-counter trading. Not a registered market maker in the security, especially in OTC and convertibles, or having nothing real to do.Not-for-profitAn organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses.Not ratedA rating service indicator, neither positive nor negative, showing that a security or company has not been rated.Not-sufficient-funds checkA bank check having insufficient funds to back it.Not held order (NH order) Explain equities. Market or limit order in which the customer does not desire to transact automatically at the inside market (market held) but
• Definition Loan Nonpurpose Explain A loan with securities pledged as collateral, but which is not to be used in securities trading or transactions
• Definition Annuity Nonqualifying Explain IRS-approved pension plan. Contributions are made with after-tax dollars, but earnings can accumulate tax-deferred until withdrawal
• Definition Option Stock Nonqualifying Explain An employee stock option that does not satisfy IRS qualifying rules and therefore is liable for taxation upon exercise
• Definition Nonrated Explain A bond that has not been rated by a large rating agency, usually because the issue is too small
• Definition Nonrecourse Explain In the case of default, the lender has ability to claim assets over and above what the limited partners contributed
• Definition Loan Nonrecourse Explain A loan taken by limited partners used to finance their portion of the partnership, which is secured by their ownership in the venture
• Definition Charge Nonrecurring Explain A one-time expense or credit shown in a company's financial statement
• Definition Nonredeemable Explain Not permitted, under the terms of an indenture, to be redeemed
• Definition Risk Nonsystematic Explain that can be eliminated by diversification. Also called unique risk or diversifiable risk. Systematic risk refers to risk factors common to
• Definition Nontradables Explain Goods and services produced and consumed domestically that are not close substitutes to import or export goods and services
• Definition Stock Nonvoting Explain A security that does not entitle the holder to vote on the corporation's resolutions or elections
• Definition Form Annuity Normal Explain The manner in which retirement benefits are paid out
• Definition Theory Backwardation Normal Explain Holds that the futures price will be bid down to a level below the expected spot price
• Definition Deviate Normal Explain Related: Standardized value
• Definition Practice Investment Normal Explain which is used as a benchmark to test the bona fide public offerings requirement of the allocation of a hot issue
• Definition Normal Market Size (NMS) Explain transactions that are normal for a particular security and forces market makers to deal within these sizes
• Definition Portfolio Normal Explain all the securities from which a manager normally chooses, weighted as the manager would weight them in a portfolio
• Definition Distribution Probability Normal Explain continuous random variable that forms a symmetrical bell-shaped curve around the mean. This distribution has no skewness or excess kurtosis
• Definition Variable Random Normal Explain A random variable that has a normal probability distribution
• Definition Retirement Normal Explain The age or number of working years after which a pension plan beneficiary can retire and receive unreduced benefits immediately
• Definition Earnings Normalized Explain Earnings that have been adjusted in order to take into account the effect of cycles in the economy
• Definition Method Normalizing Explain equivalent to the tax savings realized through the use of different depreciation methods for shareholder and income tax purposes, thus
• Definition Not a name with us Explain a registered market maker in the security, especially in OTC and convertibles, or having nothing real to do
• Definition Profit For Not Explain charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses
• Definition Rated Not Explain A rating service indicator, neither positive nor negative, showing that a security or company has not been rated
• Definition Not-sufficient-funds check Explain A bank check having insufficient funds to back it
• Definition Spread Nob Explain difference in yield between Treasury notes (maturing in 2 to 10 years) and Treasury bonds (maturing in 15 or more years), which is traded
• Definition Noise Explain confuse interpretation of market direction. Used in the context of general equities. Stock market activity caused by program trades
• Definition No-par-value stock Explain A stock with no par value given in the charter or stock certificate
• Definition Nominal Explain compounding cause the nominal rate to differ from the effective interest rate. Inflation causes the purchasing power of money to differ
• Definition Rate Annual Nominal Explain An effective rate per period multiplied by the number of periods in a year. Same as annual percentage rate
• Definition Flow Cash Nominal Explain A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given
• Definition Dollars Nominal Explain Dollars that are not adjusted for inflation
• Definition Rate Exchange Nominal Explain The actual foreign exchange quotation in contrast to the real exchange rate, which has been adjusted for changes in purchasing power
• Definition Price Exercise Nominal Explain The exercise price of a GNMA option contract, which equals the unpaid principal balance multiplied by the adjusted exercise price
• Definition Income Nominal Explain Income that has not been adjusted for inflation and decreasing purchasing power
• Definition Rate Interest Nominal Explain The interest rate unadjusted for inflation
• Definition Price Nominal Explain Price quotations on futures for a period in which no actual trading took place
• Definition Quotation Nominal Explain Bid and offer prices given by a market maker for the purpose of valuation, not as an invitation to trade; must be specifically identified
• Definition Yield Nominal Explain The income received from a fixed income security in one year divided by its par value. See also: Coupon rate
• Definition Nominee Explain other properties are transferred to facilitate transactions, while leaving the customer as the actual owner
• Definition Investor Nonaccredited Explain not meet SEC net worth requirements. These investors require less protection because of large financial resources, but only 35
• Definition Noncallable Explain A preferred stock or bond that cannot be redeemed whenever desired by the issuer
• Definition Charge Noncash Explain A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow
• Definition Member Nonclearing Explain An exchange member firm that is not able to clear transactions, and must pay another member firm to carry out its clearing operations
• Definition Noncompete Explain contracts that prohibits an employee from working for a competing firm for a specified number of years after the employee leaves the firm
• Definition Bid Noncompetitive Explain specific amount of securities at the price, whatever it may turn out to be, equal to the average price of the accepted competitive bids
• Definition Plan Pension Noncontributory Explain A pension plan that is fully paid for by the employer, requiring no employee contributions
• Definition Noncumulative Explain securities. Type of preferred stock on which unpaid or omitted dividends do not accrue. Omitted dividends are, as a rule, gone forever
• Definition Stock Preferred Noncumulative Explain Preferred stock whose holders must forgo dividend payments when the company misses a dividend payment. Related: Cumulative preferred stock
• Definition Asset Noncurrent Explain Any asset that is expected to be held for the whole year, not sold or exchanged, such as real estate, machinery, or a patent
• Definition Liability Noncurrent Explain A liability due in one year
• Definition Trust Nondiscretionary Explain A personal trust whose trustee has no discretion in deciding how income will be distributed to the beneficiary
• Definition Nondiversifiability of human capital Explain The difficulty of hedging one's human capital (the unique capabilities and expertise of individuals) and employment effort
• Definition Risk Nondiversifiable Explain Risk that cannot be eliminated by having a large portfolio of many assets
• Definition Assets Nonfinancial Explain Physical assets such as real estate and machinery
• Definition Services Nonfinancial Explain Such things as freight, insurance, passenger services, and travel
• Definition Plans Noninsured Explain Defined benefit pension plans that are not guaranteed by life insurance products. Related: Insured plans
• Definition Nasdaq Explain See: National Association of Securities Dealers Automatic Quotation System
• Definition Claims Nonmarketed Explain Claims that cannot be easily bought and sold in the financial markets, such as those of the government and litigants in lawsuits
• Definition Firm Nonmember Explain Brokerage firm that is not a member of an organized exchange (NYSE). Such firms execute trades either through member firms, or on regional
• Definition Nonparallel shift in the yield curve Explain yields do not change by the same number of basis points for every maturity. Related: Parallel shift in the yield curve
• Definition Nonparticipating life insurance policy Explain policyholders do not receive dividends, because they are not participants in the interest, dividends, and capital gains earned by the
• Definition Transaction Net Explain A securities transaction in which no commissions or extra fees are paid, such as in an initial public offering
• Definition Capital Working Net Explain Current assets minus current liabilities. Often simply referred to as working capital
• Definition Worth Net Explain Common stockholders' equity which consists of common stock, surplus, and retained earnings
• Definition Yield Net Explain The rate of return on a security minus purchase costs, commissions, or markups
• Definition Netting Explain Reducing transfers of funds between subsidiaries or separate companies to a net amount
• Definition Out Netting Explain To get or bring in as a net; to clear as profit
• Definition Noninsured plans Defined benefit pension plans that are not guaranteed by life insurance products. Related: Insured plans.Noninterest-bearing noteA note without periodic interest payment, but selling at a discount and maturing at face value. See: Zero-coupon bond.Nonmarketed claimsClaims that cannot be easily bought and sold in the financial markets, such as those of the government and litigants in lawsuits.Nonmember firmUsed for listed equity securities. Brokerage firm that is not a member of an organized exchange (NYSE). Such firms execute trades either through member firms, or on regional exchanges where they are members, or in the third market.Nonparallel shift in the yield curve A shift in the yield curve in which yields do not change by the same number of basis points for every maturity. Related: Parallel shift in the yield curve.Nonparticipating life insurance policyLife insurance policy whose policyholders do not receive dividends, because they are not participants in the interest, dividends, and capital gains earned by the insurer on premiums paid.Nonperforming assetAn asset that is not effectively producing income, such as an overdue loan.Nonproductive loanA loan that increases spending power, but is used in business that does not directly increase the economy's output, such as a leveraged buyout loan.Nonpublic informationInformation about a company that is not known by the general public, which will have a definite impact on the stock price when released. See: Insider trading.Nonpurpose loanA loan with securities pledged as collateral, but which is not to be used in securities trading or transactions.Nonqualifying annuityAn annuity that does not fall under an IRS-approved pension plan. Contributions are made with after-tax dollars, but earnings can accumulate tax-deferred until withdrawal.Nonqualifying stock optionAn employee stock option that does not satisfy IRS qualifying rules and therefore is liable for taxation upon exercise .NonratedA bond that has not been rated by a large rating agency, usually because the issue is too small.NonrecourseIn the case of default, the lender has ability to claim assets over and above what the limited partners contributed.Nonrecourse loanA loan taken by limited partners used to finance their portion of the partnership, which is secured by their ownership in the venture.Nonrecurring chargeA one-time expense or credit shown in a company's financial statement.NonredeemableNot permitted, under the terms of an indenture, to be redeemed.NonrefundableNot permitted, under the terms of an indenture, to be refundable.Nonreproducible assets A tangible asset with unique physical properties, like a parcel of land, a mine, or a work of art.Nonsystematic riskNonmarket or firm-specific risk factors that can be eliminated by diversification. Also called unique risk or diversifiable risk. Systematic risk refers to risk factors common to the entire economy.NontradablesGoods and services produced and consumed domestically that are not close substitutes to import or export goods and services.Nonvoting stockA security that does not entitle the holder to vote on the corporation's resolutions or elections.Normal annuity formThe manner in which retirement benefits are paid out.Normal backwardation theoryHolds that the futures price will be bid down to a level below the expected spot price.Normal deviate Related: Standardized valueNormal investment practiceThe investment history of a customer, which is used as a benchmark to test the bona fide public offerings requirement of the allocation of a hot issue.Normal Market Size (NMS)A system that categorizes the size of transactions that are normal for a particular security and forces market makers to deal within these sizes.Normal portfolioA customized benchmark that includes all the securities from which a manager normally chooses, weighted as the manager would weight them in a portfolio.Normal probability distribution A probability distribution for a continuous random variable that forms a symmetrical bell-shaped curve around the mean. This distribution has no skewness or excess kurtosis.Normal random variableA random variable that has a normal probability distribution.Normal retirementThe age or number of working years after which a pension plan beneficiary can retire and receive unreduced benefits immediately.Normal trading unitSee: Round lot.Normalized earningsEarnings that have been adjusted in order to take into account the effect of cycles in the economy.Normalizing method Making a change in the income account equivalent to the tax savings realized through the use of different depreciation methods for shareholder and income tax purposes, thus washing out the benefits of the tax savings reported as final net income to shareholders.Not a name with usRefers to over-the-counter trading. Not a registered market maker in the security, especially in OTC and convertibles, or having nothing real to do.Not-for-profitAn organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses.Not ratedA rating service indicator, neither positive nor negative, showing that a security or company has not been rated.Not-sufficient-funds checkA bank check having insufficient funds to back it.Not held order (NH order) Explain equities. Market or limit order in which the customer does not desire to transact automatically at the inside market (market held) but
• Definition Period Neutral Explain Eurodollars are sold is said to be neutral if it does not start or end on either a Friday or the day before a holiday
• Definition Nyse Explain See: New York Stock Exchange
• Definition New high/new low Explain A stock valued at its highest or lowest price in the last year
• Definition Issue New Explain for the first time, whether in an IPO or as an additional issue of stocks or bonds by a company that is already public
• Definition Market Issues New Explain securities is first sold to investors. This is not a separate market but refers to a niche of the overall market
• Definition Listing New Explain A security that has just been entered on a stock or bond exchange for trading
• Definition Money New Explain In a Treasury auction, the amount by which the par value of the securities offered exceeds that of those maturing
• Definition New York Cotton Exchange (NYCE) Explain trading futures and options on cotton, frozen concentrated orange juice, and potatoes, as well as interest rate, currency, and index
• Definition New York Futures Exchange (NYFE) Explain A wholly owned subsidiary of the NYSE that trades futures and futures options on the NYSE composite index
• Definition New York Mercantile Exchange (NYMEX) Explain The world's largest physical commodity futures exchange
• Definition Index Composite Nyse Explain movements of all new world common stocks listed on the New York Stock Exchange. It is based on the close of the market on December 31, 1965
• Definition New Zealand Stock Exchange Explain Automated, screen-based national trading system based in Wellington
• Definition Out News Explain news story concerning the stock being considered has recently been posted on one of the news services, such as the Dow Jones News Service
• Definition Contract Futures Next Explain The contract settling immediately after the nearby futures contract
• Definition Contracts Of Nexus Explain A set or collection of something
• Definition Nics Explain Newly Industrialized Countries, which are countries with high-growth industrial economies, such as Hong Kong and Malaysia
• Definition Fifty Nifty Explain Institutional investor' 50 most popular stocks
• Definition Average Stock Nikkei Explain equities. Price-weighted average of 225 stocks of the first section of the Tokyo Stock Exchange started on May 16, 1949. Japanese
• Definition Rule Bond Nine Explain An NYSE rule requiring that orders for nine bonds or fewer stay on the floor for one hour to seek a market
• Definition Letter Action No Explain Exchange Commission agreeing that the commission will take no civil or criminal action against a party, regarding a specific activity
• Definition Autex No Explain No buy or sell interest should be entered into the Autex (advertising) system. Inquirers do not want exposure of an inquiry to affect the
• Definition Book No Explain Used for listed equity securities. Not much, if any, stock is being bid for or offered at the present time by customers or the specialist
• Definition Brainer No Explain A market in which it does not take very complex analysis to figure out how securities are going to perform, such as a strong bull market
• Definition Fund Load No Explain A mutual fund that does not impose a sales commission. Related: Load fund, no-load mutual fund
• Definition No-load mutual fund Explain shares are sold without a sales charge. There can be other distribution charges, however, such as Article 12B-1 fees. A true no-load fund
• Definition Stock Load No Explain Shares that can be purchased from the issuing companies themselves, so that broker fees and commissions can be avoided
• Definition Nm Explain Abbreviation for not meaningful
• Definition Net adjusted present value Explain The adjusted present value minus the initial cost of an investment
• Definition Net advantage to leasing Explain The net present value of entering into a lease financing arrangement rather than borrowing the necessary funds and buying the asset
• Definition Net advantage to merging Explain The difference in total post- and pre-merger market value minus the cost of the merger
• Definition Net advantage of refunding Explain The net present value of the savings from a refunding
• Definition Net after-tax gain Explain Capital gain after income taxes have been paid
• Definition Net asset value (NAV) Explain For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or
• Definition Assets Net Explain The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand
• Definition Net benefit to leverage factor Explain that enables one to operationalize the total impact of leverage on firm value in the capital market imperfections view of capital structure
• Definition Value Book Net Explain The current book value of an asset or liability; that is, its original book value net of any accounting adjustments such as depreciation
• Definition Requirement Capital Net Explain nonmember securities broker-dealers maintain a maximum ratio of indebtedness to liquid capital of 15 to 1
• Definition Balance Cash Net Explain Beginning cash balance plus cash receipts minus cash disbursements
• Definition Change Net Explain This is the difference between a day's last trade and the previous day's last trade
• Definition Assets Current Net Explain The difference between current assets and current liabilities, also known as working capital
• Definition Net errors and omissions Explain errors and omissions record the statistical discrepancies that arise in gathering balance of payments data
• Definition Cost Financing Net Explain simply, carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means
• Definition Float Net Explain Sum of disbursement float and collection float
• Definition Income Net Explain reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses
• Definition Net interest cost (NIC) Explain The total amount of interest that will be paid on a debt obligation by a corporate or municipal bond issuer
• Definition Investment Net Explain Gross, or total, investment minus depreciation
• Definition Net investment income per share Explain company from dividends and interest on investments less administrative expenses, divided by the number of outstanding shares
• Definition Lease Net Explain lessee is responsible for all property taxes, maintenance expenses, insurance, and other costs associated with keeping the asset in good
• Definition Losses Operating Net Explain Losses that a firm can take advantage of to reduce taxes
• Definition Margin Operating Net Explain The ratio of net operating income to net sales
• Definition Parity Net Explain Price of a convertible security including accrued interest.International: Price of international security including commissions, fees
• Definition Period Net Explain The period of time between the end of the discount period and the date payment is due
• Definition Position Net Explain the initial cost of setting up the position. For example, if 100 options where purchased for $1 each and the option is currently trading
• Definition Proceeds Net Explain Amount received from the sale of an asset after deducting all transaction costs
• Definition Net present value of future investments Explain The present value of the total sum of NPVs expected to result from all of the firm's future investments
• Definition Net present value of growth opportunities Explain A model valuing a firm in which net present value of new investment opportunities is explicitly examined
• Definition Net present value rule Explain An investment is worth making if it has a positive NPV Projects with negative NPVs should be rejected
• Definition Margin Profit Net Explain Net income divided by sales; the amount of each sales dollar left over after all expenses have been paid
• Definition Assets Quick Net Explain Cash, marketable securities, and accounts receivable less current liabilities
• Definition Net realized capital gains per share Explain company minus any capital losses divided by the total number of the company's outstanding shares
• Definition Sales Net Explain Gross sales less returns and allowances, freight out, and cash discounts allowed
• Definition N Explain Fifth letter in a Nasdaq stock symbol specifying that the issue is the company's third class of preferred shares
• Definition Transaction Sales Net Explain Securities deal in which the quoted prices include commissions (i.e., OTC); looked at another way, the buyer and seller do not pay fees or
• Definition Value Salvage Net Explain The after-tax net cash flow for terminating the project
• Definition Net tangible assets per share Explain patents, trademarks, and other intangible assets minus all liabilities and the par value of preferred stock, divided by the number of
• Definition Debt National Explain Treasury bills, notes, bonds, and other debt obligations that constitute the debt owed by the federal government
• Definition National Foundation for Consumer Credit Explain help consumers who have taken on too much debt by helping them work out payment plans and supplying credit counseling
• Definition National Futures Association (NFA) Explain The futures industry self-regulatory organization established in 1982
• Definition Market National Explain Related: Internal market
• Definition National Market Advisory Board Explain establishing a national exchange market system, which is a highly automated, continuous national exchange, but that preserves the regional
• Definition Bureau Quotation National Explain A service that publishes bid and offer quotes from market makers in OTC transactions
• Definition National Securities Clearing Corporation (NSCC) Explain A clearing corporation that facilitates the settlement of accounts among brokerage firms, exchanges, and other clearing corporations
• Definition National Stock Exchange (NSE) Explain Second-largest stock exchange based in India
• Definition Nationalization Explain A government takeover of a private company
• Definition Natural Explain Used in the context of general equities. Customer buyer or seller, versus a principal or profile interest. Legitimate, real
• Definition Logarithm Natural Explain Logarithm to the base e (approximately 2.7183
• Definition Money Near Explain Assets that are easily convertible into cash, such as money market accounts and bank deposits
• Definition Nearby Explain The nearest active trading month of a financial or commodity futures market. Related: Deferred futures
• Definition Contract Futures Nearby Explain considered, the contract with the closest settlement date is called the nearby futures contract. The next (or the next out ) futures
• Definition Month Nearest Explain The expiration date of an option or future that is closest to the present
• Definition Tick The Need Explain stock must trade up/down at least one tick (1/8) in order to comply with regulations governing short sales/corporate repurchases
• Definition Amortization Negative Explain outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full
• Definition Carry Negative Explain Related: Net financing cost
• Definition Flow Cash Negative Explain Occurs when spending in a business is greater than earnings
• Definition Convexity Negative Explain price appreciation will be less than the price depreciation for a large change in yield of a given number of basis points. For example, a
• Definition Covenant Negative Explain A bond covenant that limits or prohibits certain actions unless the bondholders agree
• Definition Duration Negative Explain Occurs when the price of an MBS moves in the same direction as interest rates
• Definition Tax Income Negative Explain below-subsistence-level incomes. After filing a tax return, such persons would receive a subsidy to bring them up above the poverty level
• Definition Clause Pledge Negative Explain borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders
• Definition Capital Working Negative Explain Occurs when current liabilities exceed current assets, which can lead to bankruptcy
• Definition Curve Yield Negative Explain is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term
• Definition Effect Firm Neglected Explain The tendency of firms that are neglected by security analysts to outperform firms that are the subject of considerable attention
• Definition Negotiable Explain A security whose title is transferable by delivery . See also: Negotiable instrument
• Definition Instrument Negotiable Explain An unconditional order or promise to pay some amount of money, easily transferable from one party to another
• Definition Negotiated certificate of deposit Explain A large-denomination CD, generally $1MM or more, that can be sold but cannot be cashed in before maturity
• Definition Commission Negotiated Explain An unfixed broker's commission that is determined through negotiation, depending on the specifics of the trades performed
• Definition Markets Negotiated Explain Markets in which each transaction is separately negotiated between buyer and seller (i.e., an investor and a dealer
• Definition Offering Negotiated Explain terms, including underwriters' compensation, have been negotiated between the issuer and the underwriters
• Definition Sale Negotiated Explain negotiation between the issuer and the underwriter rather than through competitive bidding by underwriting groups
• Definition Underwriting Negotiated Explain the purchase price paid to the issuer and the public offering price are determined by negotiation rather than through competitive bidding
• Definition Neo Explain Abbreviation for nonequity options, which are options contracts on foreign currencies, debt issues, commodities, and stock indexes
• Definition Net Explain The gain or loss on a security sale as measured by the selling price of a security less the adjusted cost of acquisition
• Definition National Association of Securities Dealers Automatic Quotation System (Nasdaq) Explain provides price quotations to market participants about the more actively traded common stock issues in the OTC market. About 4000 common
• Definition Net asset value (NAV) The value of a fund's investments. For a mutual fund, the net asset value per share usually represents the fund's market price, subject to a possible sales or redemption charge. For a closed-end fund, the market price may vary significantly from the net asset value.Net assetsThe difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand.Net benefit to leverage factorA linear approximation of a number, that enables one to operationalize the total impact of leverage on firm value in the capital market imperfections view of capital structure.Net book valueThe current book value of an asset or liability; that is, its original book value net of any accounting adjustments such as depreciation.Net capital requirementSEC requirement that member firms and nonmember securities broker-dealers maintain a maximum ratio of indebtedness to liquid capital of 15 to 1.Net cash balanceBeginning cash balance plus cash receipts minus cash disbursements.Net changeThis is the difference between a day's last trade and the previous day's last trade.Net current assetsThe difference between current assets and current liabilities, also known as working capital.Net errors and omissionsIn balance of payments accounting, net errors and omissions record the statistical discrepancies that arise in gathering balance of payments data.Net financing cost Also called the cost of carry or, simply, carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means that the yield earned is greater than the financing cost; negative carry means that the financing cost exceeds the yield earned.Net floatSum of disbursement float and collection float.Net income Explain reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses
• Definition National Futures Association (NFA) The futures industry self-regulatory organization established in 1982.National market Related: Internal marketNational Market Advisory BoardGroup that advises the SEC on establishing a national exchange market system, which is a highly automated, continuous national exchange, but that preserves the regional exchanges.National Market System (NMS) Explain System of trading OTC stocks under the sponsorship of the NASD. Must meet certain criteria for size, profitability and trading activity
• Definition National Market System (NMS) Explain System of trading OTC stocks under the sponsorship of the NASD. Must meet certain criteria for size, profitability and trading activity
• Definition Note issuance facility (NIF) Explain banks indicates a willingness to accept short-term notes from borrowers and resell these notes in the Eurocurrency markets
• Definition Negotiable order of withdrawal (NOW) Explain Demand deposits that pay interest
• Definition Net present value (NPV) Explain The present value of the expected future cash flows minus the cost
• Definition New York Stock Exchange (NYSE) Explain Also known as the Big Board or the Exchange
• Definition Diversification Naive Explain invests in a number of different assets in the hope that the variance of the expected return on the portfolio is lowered. In contrast
• Definition Strategies Option Naked Explain use of one of the following: Short call strategy (selling or writing call options), and short put strategy (selling or writing put options
• Definition Strategies Naked Explain Writing an option without owning the underlying asset. Holder is naked because holder may have agreed to sell something not owned
• Definition Insurance Perils Named Explain An insurance policy that names specific risks covered by the policy
• Definition NASD form FR-1 Explain dealers to ensure that firms participating in a new distribution of securities make a bona fide public offering
• Definition Market Narrow Explain An inactive market, which displays large fluctuations in prices due to a low volume of trading
• Definition Spread The Narrowing Explain Reducing the difference between the bid and ask prices of a security
• Definition Nasdaq small-capitalization companies Explain A group of 2000 companies with relatively small capitalization, which are listed separately and have at least two market makers
• Definition Market Stock Nasdaq Explain listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large
• Definition National Association of Investors Corporation Explain A Michigan-based association that helps groups establish investment clubs
• Definition National Association of Securities Dealers (NASD) Explain joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation
• Definition Bank National Explain Comptroller of the Currency, which is required to be a member of and purchase stocks in the Federal Reserve System
• Definition National Credit Union Administration Explain Federal agency that oversees and insures the federal credit union system, and is funded by its members
• Definition National Association of Securities Dealers (NASD)Nonprofit organization formed under the joint sponsorship of the investment bankers' conference and the SEC to comply with the Maloney Act, which provides for the regulation of the OTC market.National Association of Securities Dealers Automatic Quotation System (Nasdaq) Explain provides price quotations to market participants about the more actively traded common stock issues in the OTC market. About 4000 common

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National Association Of Securities Dealers (Nasd)Nonprofit Organization Formed Under The Joint Sponsorship Of The Investment Bankers' Conference And The

National Association Of Securities Dealers (Nasd)Nonprofit