NAAG: National Association of Attorneys General

NAD: Namibian Dollar from Namibia.

Naive diversification: A strategy whereby an investor simply invests in a number of different ...

Naked option strategies: An unhedged strategy making exclusive use of one of the following: Lon ...

Nanny state: A description, coined by House Speaker Newt Gingrich, that describes e ...

NASD: The National Association of Securities Dealers (NASD) is a self­regula ...

NASDAQ: The National Association of Securities Dealers Automatic Quotations Se ...

Nasdaq 100: The Nasdaq 100 is based on 100 stocks using the National Association o ...

National Futures Association (NFA): The futures industry self regulatory organization established in 1982.

National income: The value of goods and services created by a country in one year.

Nationalization: A government takeover of a private company.

Natural logarithm: Logarithm to the base e (approximately 2.7183).

Natural resources: Resources not made by man.

Near money: A domestic dollar deposit is money within the context of the US econom ...

Nearby: The nearest active trading month of a financial or commodity futures m ...

Nearby futures contract: When several futures contracts are considered, the contract with the c ...

Nearbys: The nearest delivery months of a commodity futures market.

NedCo (Non-executive directors committee of BoE): NedCo is a committee of the non-executive directors of the Bank of Eng ...

Negative amortization: A loan repayment schedule in which the outstanding principal balance o ...

Negative amortization: A gradual increase in mortgage debt that occurs when the monthly payme ...



Negative convexity: A bond characteristic such that the price appreciation will be less th ...

Negative covenant: A bond covenant that limits or prohibits altogether certain actions un ...

Negative duration: A situation in which the price of the MBS moves in the same direction ...

Negative pledge clause: A bond covenant that requires the borrower to grant lenders a lien equ ...

Neglected firm effect: The tendency of firms that are neglected by security analysts to outpe ...

Negotiable order of withdrawal (NOW): Demand deposits that pay interest.

Negotiated certificate of deposit: A large-denomination CD, generally $1MM or more, that can be sold but ...

Negotiated markets: Markets in which each transaction is separately negotiated between buy ...

Negotiated offering: An offering of securities for which the terms, including underwriters' ...

Negotiated sale: Situation in which the terms of an offering are determined by negotiat ...

Nest egg: Funds set aside for a specific purpose, often for retirement.

Net adjusted present value: The adjusted present value minus the initial cost of an investment.

Net advantage of refunding: The net present value of the savings from a refunding.

Net advantage to leasing: The net present value of entering into a lease financing arrangement r ...

Net advantage to merging: The difference in total post- and pre-merger market value minus the co ...

Net asset value (NAV): The value of a fund's investments. For a mutual fund, the net asset va ...

Net assets: The difference between total assets on the one hand and current liabil ...

Net benefit to leverage factor: A linear approximation of a factor, T*, that enables one to operationa ...

Net book value: The current book value of an asset or liability; that is, its original ...

Net cash balance: Beginning cash balance plus cash receipts minus cash disbursements.



Net change: This is the difference between a day's last trade and the previous day ...

Net errors and omissions: In balance of payments accounting, net errors and omissions record the ...

Net financing cost: Also called the cost of carry or, simply, carry, the difference betwee ...

Net float: Sum of disbursement float and collection float.

Net income: The company's total earnings, reflecting revenues adjusted for costs o ...

Net interest margin (NIM): The difference between interest income and interest expense as a perce ...

Net investment: Gross, or total, investment minus depreciation.

Net lease: A lease arrangement under which the lessee is responsible for all prop ...

Net national product: The technical term for national income, it is GNP minus capital consum ...

Net operating losses: Losses that a firm can take advantage of to reduce taxes.

Net operating margin: The ratio of net operating income to net sales.

Net period: The period of time between the end of the discount period and the date ...

Net present value (NPV): The present value of the expected future cash flows minus the cost.

Net present value of future investments: The present value of the total sum of NPVs expected to result from al ...

Net present value of growth opportunities: A model valuing a firm in which net present value of new investment o ...

Net present value rule: An investment is worth making if it has a positive NPV. Projects with ...

Net profit margin: Net income divided by sales; the amount of each sales dollar left over ...

Net salvage value: The after-tax net cash flow for terminating the project.

Net working capital: Current assets minus current liabilities. Often simply referred to as ...

Net worth: Common stockholders' equity which consists of common stock, surplus, a ...



Netting: Reducing transfers of funds between subsidiaries or separate companies ...

Netting out: To get or bring in as a net; to clear as profit.

Neutral period: In the Euromarket, a period over which Eurodollars are sold is said to ...

New money: In a Treasury auction, the amount by which the par value of the securi ...

New York Stock Exchange (NYSE): Also known as the Big Board or The Exhange. More than 2,000 common an ...

New-issues market: The market in which a new issue of securities is first sold to investo ...

Next futures contract: The contract settling immediately after the nearby futures contract.

Nexus (of contracts): A set or collection of something.

NGN: Naira from Nigeria.

NIC: Córdoba from Nicaragua.

NIF: A note issuance facility (NIF) is a medium-term legally binding commit ...

Nikkei 225 Stock Average: The Nikkei 225 Stock Average (NIKKEI 225) is based on a portfolio of 2 ...

NLG: Dutch Guilder (no longer in use) from the Netherlands. Now replaced by ...

NM: Abbreviation for Not Meaningful.

No load mutual fund: An open-end investment company, shares of which are sold without a sal ...

No-load fund: A mutual fund that does not impose a sales commission.

No-shop agreement: The target company involved in merger or acquisition agrees not to con ...

NOI: Net operating income. Revenue minus all operating costs including depr ...

Noise: Price and volume fluctuations that can confuse interpretation of marke ...

NOK: Norwegian Krone from Norway. Also used in Antarctica, Bouvet Islands, ...

Nominal: In name only. Differences in compounding cause the nominal rate to dif ...

Nominal annual rate: An effective rate per period multiplied by the number of periods in a ...

Nominal cash flow: A cash flow expressed in nominal terms if the actual dollars to be rec ...

Nominal exchange rate: The actual foreign exchange quotation in contrast to the real exchange ...

Nominal interest rate: The interest rate unadjusted for inflation.

Nominal price: Price quotations on futures for a period in which no actual trading to ...

Nominal rate of interest: The annual return form lending money expressed as a percentage, withou ...

Non-amortizing securities: Securities that do not have an amortization schedule.

Non-cumulative preferred stock: Preferred stock whose holders must forgo dividend payments when the c ...

Non-financial services: Include such things as freight, insurance, passenger services, and tra ...

Non-insured plans: Defined benefit pension plans that are not guaranteed by life insuranc ...

Non-parallel shift in the yield curve: A shift in the yield curve in which yields do not change by the same ...

Non-reproducible assets: A tangible asset with unique physical properties, like a parcel of lan ...

Non-tradables: Refer to goods and services produced and consumed domestically that ar ...

Noncash charge: A cost, such as depreciation, depletion, and amortization, that does n ...

Noncompetitive bid: In a Treasury auction, bidding for a specific amount of securities at ...

Nondiversifiability of human capital: The difficulty of diversifying one's human capital (the unique capabi ...

Nondiversifiable risk: Risk that cannot be eliminated by diversification.

Nonmarketed claims: Claims that cannot be easily bought and sold in the financial markets, ...

Nonrecourse: Without recourse, as in a non-recourse lease.

Nonredeemable: Not permitted, under the terms of indenture, to be redeemed.

Nonrefundable: Not permitted, under the terms of indenture, to be refundable.

Nonresident of the US alien (NRA): Not a U.S. person as defined under the Internal Revenue Code (IRC).

Nonsystematic risk: Nonmarket or firm-specific risk factors that can be eliminated by dive ...

NOPAT: Net operating profit after taxes. Can be calculated as: NOI x (1 ...

Normal annuity form: The manner in which retirement benefits are paid out.

Normal backwardation theory: Holds that the futures price will be bid down to a level below the exp ...

Normal portfolio: A customized benchmark that includes all the securities from which a m ...

Normal probability distribution: A probability distribution for a continuous random variable that is fo ...

Normal random variable: A random variable that has a normal probability distribution.

Normalizing method: The practice of making a charge in the income account equivalent to th ...

Nostro accounts: As there is no dollar cleraing and settlement system outside the USA, ...

Note: Debt instruments with initial maturities greater than one year and les ...

Note agreement: A contract for privately placed debt.

Note issuance facility (NIF): An agreement by which a syndicate of banks indicates a willingness to ...

Notes to the financial statements: A detailed set of notes immediately following the financial statements ...

Notice day: A day on which notices of intent to deliver pertaining to a specified ...

Notice of default: A formal written notice to a borrower that a default has occurred and ...

Notification date: The day the option is either exercised or expires.

Notional principal amount: In an interest rate swap, the predetermined dollar principal on which ...

Novation: Defeasance whereby the firm's debt is canceled.

NPBT: Net Profit before Tax (NPBT) - i.e. a measure of performance (i.e. net ...

NPR: Nepalese Rupee from Nepal.

NPV: Capital budgeting criteria that compare the present value of cash infl ...

NPV profile: A graph of NPV as a function of the discount rate.

NPVGO: Net present value of growth opportunities. Can be calculated as: ...

Null hypothesis: In classical hypothesis testing, we take the null hypothesis as true a ...

NZD: New Zealand Dollar from New Zealand. Also used in Cook Islands, Niue, ...

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Garage sale

Sale of unwanted items at extremely low prices.


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