| Term | Definition |
|---|---|
| NACHA | National Automated Clearing House Association |
| Naked Call | A short call option where the seller does not own the underlying asset |
| Naked Option | A short option position where the seller does not own the underlying asset |
| Naked Put | A short put option where the seller does not have a corresponding short position in the underlying asset |
| Naked Shorting | Selling a security that has been borrowed without actually owning it |
| Named Beneficiary | A beneficiary specifically named in a policy or document |
| Named Perils Insurance Policy | An insurance policy that covers only specific perils |
| Nanny Tax | Taxes related to employing a household worker |
| Narrow Money | A measure of the money supply that includes only the most liquid assets |
| Nasdaq | National Association of Securities Dealers Automated Quotations |
| Nasdaq 100 Index | A stock market index of 100 of the largest non-financial companies listed on the Nasdaq |
| Nasdaq Capital Market | A tier of the Nasdaq stock market |
| Nasdaq Composite Index | A stock market index of all the companies listed on the Nasdaq |
| Nasdaq Global Select Market Composite | A stock market index of large-cap companies listed on the Nasdaq |
| Nash Equilibrium | A concept in game theory |
| National Association of Certified Valuation Analysts (NACVA) | A professional organization for business valuation analysts |
| National Association of Federal Credit Unions (NAFCU) | A trade association for credit unions |
| National Association of Insurance Commissioners (NAIC) | A U.S. organization that sets standards for insurance regulation |
| National Association of Insurance and Financial Advisors (NAIFA) | A professional organization for insurance and financial advisors |
| National Association of Investors Corp. (NAIC) | An organization that promotes investing |
| National Association of Real Estate Investment Trusts (Nareit) | A trade association for REITs |
| National Association of Realtors (NAR) | A trade association for real estate agents |
| National Association of Securities Dealers (NASD) | A former name for FINRA |
| National Association of State Boards of Accountancy (NASBA) | An organization that oversees the licensing of accountants |
| National Average Wage Index (NAWI) | An index used to calculate Social Security benefits |
| National Bank | A bank chartered by the federal government |
| National Best Bid and Offer (NBBO) | The best bid and offer prices across all exchanges |
| National Bureau of Economic Research (NBER) | A U.S. research organization |
| National Commodities And Derivatives Exchange (NCDEX) | A commodity exchange in India |
| National Credit Union Administration (NCUA) | The U.S. regulator for credit unions |
| National Currency | The currency of a country |
| National Futures Association (NFA) | A U.S. regulator for the futures industry |
| National Housing Act | A U.S. law related to housing |
| National Income Accounting | A system for measuring the economy’s performance |
| National Insurance Contributions (NIC) | A tax in the UK |
| National Market System (NMS) | The U.S. market for securities |
| National Registration Database (NRD) | A database of registered representatives |
| National Retail Federation (NRF) | A trade association for retailers |
| National Securities Clearing Corporation (NSCC) | A U.S. clearing corporation |
| National Securities Markets Improvement Act (NSMIA) | A U.S. law related to securities regulation |
| National Stock Exchange of India Limited (NSE) | A stock exchange in India |
| Nationalization | Government takeover of private assets |
| Natural Gas ETF | An exchange-traded fund that tracks natural gas prices |
| Natural Gas Liquids | Components of natural gas |
| Natural Gas Storage Indicator (EIA Report) | A weekly report on natural gas storage levels in the U.S. |
| Natural Hedge | A hedge that arises naturally from a business’s operations |
| Natural Language Processing (NLP) | A branch of artificial intelligence |
| Natural Law | A system of law based on morality and reason |
| Natural Monopoly | A monopoly that arises due to economies of scale |
| Natural Selection | A concept in biology |
| Natural Unemployment | The level of unemployment consistent with stable inflation |
| NAV Return | The return on a fund’s net asset value |
| Near Field Communication (NFC) | A technology that enables short-range wireless communication |
| Near Money | Assets that can be easily converted to cash |
| Near Term | A short period of time |
| Near the Money | An option with a strike price close to the current price of the underlying asset |
| Neckline | A line on a chart pattern |
| Needs Approach | A method of determining life insurance needs |
| Negative Amortization | An increase in the principal balance of a loan |
| Negative Arbitrage | A situation where the cost of carrying a position exceeds the income generated by the position |
| Negative Assurance | Limited assurance |
| Negative Bond Yield | A bond yield that is less than zero |
| Negative Carry | The cost of carrying a position that exceeds the income generated by the position |
| Negative Confirmation | A type of audit confirmation |
| Negative Convexity | A characteristic of some bonds |
| Negative Correlation | A relationship between two variables where they move in opposite directions |
| Negative Covenant | A restriction on a borrower |
| Negative Directional Indicator (-DI) | A technical indicator |
| Negative Equity | A situation where the value of an asset is less than the amount owed on the loan |
| Negative Feedback | A process that counteracts change |
| Negative Gap | A situation where assets are less than liabilities |
| Negative Gearing | A situation where expenses exceed income |
| Negative Goodwill (NGW) | Goodwill that is negative |
| Negative Growth | A decrease in economic output |
| Negative Income Tax (NIT) | A type of welfare program |
| Negative Interest Rate | An interest rate that is less than zero |
| Negative Interest Rate Environment | A period of negative interest rates |
| Negative Interest Rate Policy (NIRP) | A monetary policy that involves setting negative interest rates |
| Negative Pledge Clause | A covenant that restricts a borrower from pledging assets as collateral |
| Negative Return | A loss on an investment |
| Negative Volume Index (NVI) | A technical indicator |
| Negotiable | Transferable |
| Negotiable Bill of Lading | A bill of lading that can be transferred |
| Negotiable Certificate Of Deposit (NCD) | A certificate of deposit that can be traded |
| Negotiable Instrument | A financial instrument that can be transferred |
| Negotiable Order of Withdrawal (NOW) | A type of checking account |
| Negotiated Dealing System (NDS) | An electronic trading system |
| Negotiation | The process of reaching an agreement |
| Nelson Peltz | An activist investor |
| Neoclassical Economics | A school of economic thought |
| Neoclassical Growth Theory | A theory about economic growth |
| Neoliberalism | A political and economic ideology |
| Nepalese Rupee (NPR) | The currency of Nepal |
| Nest Egg | Savings for retirement |
| Net Asset Value (NAV) | The value of a fund’s assets minus its liabilities |
| Net Asset Value Per Share (NAVPS) | The NAV divided by the number of shares outstanding |
| Net Cash | Cash and cash equivalents |
| Net Change | The difference between the current price and the previous price |
| Net Charge-Off (NCO) | The amount of loans that a lender does not expect to be repaid |
| Net Current Asset Value Per Share (NCAVPS) | A valuation metric |
| Net Debt | Total debt minus cash and cash equivalents |
| Net Debt Per Capita | A measure of a country’s debt burden |
| Net Debt-to-EBITDA Ratio | A measure of a company’s leverage |
| Net Domestic Product (NDP) | Gross domestic product minus depreciation |
| Net Export | Exports minus imports |
| Net Exposure | The difference between assets and liabilities |
| Net Foreign Assets (NFA) | The difference between a country’s foreign assets and its foreign liabilities |
| Net Foreign Factor Income (NFFI) | The difference between income earned by domestic factors in other countries and income earned by foreign factors domestically |
| Net Importer | A country that imports more than it exports |
| Net Income (NI) | A company’s profit after all expenses have been deducted |
| Net Income After Taxes (NIAT) | Net income after taxes |
| Net Interest Income | The difference between interest income and interest expense |
| Net Interest Margin | A measure of a bank’s profitability |
| Net Interest Rate Differential (NIRD) | The difference in interest rates between two currencies |
| Net Internal Rate of Return | A variation of the internal rate of return |
| Net Interest Rate Spread | Same as Net Interest Margin |
| Net International Investment Position (NIIP) | The difference between a country’s foreign assets and its foreign liabilities |
| Net Investment | Gross investment minus depreciation |
| Net Investment Income (NII) | Income from investments |
| Net Lease | A lease where the tenant pays some of the operating expenses |
| Net Liquid Assets | Liquid assets minus short-term liabilities |
| Net Loss | A loss after all expenses have been deducted |
| Term | Definition |
|---|---|
| Net National Product (NNP) | Gross national product minus depreciation |
| Net-Net | A valuation method |
| Net Neutrality | The principle that internet service providers should treat all traffic equally |
| Net of Tax | After taxes |
| Net Operating Income | Income from operations |
| Net Operating Loss (NOL) | A loss from operations |
| Net Operating Profit After Tax (NOPAT) | Net operating income after taxes |
| Net Operating Profit Less Adjusted Taxes (NOPLAT) | Same as NOPAT |
| Net Premium | The premium paid to an insurer after deducting reinsurance costs |
| Net Premiums Written | Premiums written after deducting reinsurance premiums |
| Net Present Value (NPV) | The present value of future cash flows minus the initial investment |
| Net Present Value of Growth Opportunities (NPVGO) | The value of future growth opportunities |
| Net Present Value Rule | The principle that investments should be made if their NPV is positive |
| Net Proceeds | The amount received from a sale after deducting expenses |
| Net Profit Margin | A measure of profitability |
| Net Realizable Value (NRV) | The expected selling price of an asset minus the costs of disposal |
| Net Receivables | Accounts receivable minus the allowance for doubtful accounts |
| Net Sales | Gross sales minus returns and allowances |
| Net Settlement | The final transfer of securities and funds |
| Net Tangible Assets | Total assets minus intangible assets and liabilities |
| Net Unrealized Appreciation (NUA) | The difference between the current market value of an asset and its cost basis |
| Net Volume | The difference between buying and selling volume |
| Net Worth | Assets minus liabilities |
| Netback | The price received for a commodity at the wellhead or point of production |
| Netting | The process of offsetting payments |
| Network Effect | The phenomenon where a product or service becomes more valuable as more people use it |
| Network Marketing | A marketing strategy that involves selling products through a network of distributors |
| Networking | The process of building relationships |
| Neural Network | A type of artificial intelligence |
| Neutral | Neither bullish nor bearish |
| Neutrality Of Money | The principle that changes in the money supply only affect nominal variables |
| New Deal | A series of programs enacted by President Franklin D. Roosevelt |
| New Drug Application (NDA) | An application to the FDA to market a new drug |
| New Economy | A term used to describe the economy in the late 1990s |
| New Fund Offer (NFO) | The initial offering of a new mutual fund |
| New Growth Theory | A theory about economic growth |
| New Home Sales | Sales of newly constructed homes |
| New Indications | New uses for existing drugs |
| New Issue | A security that is being offered to the public for the first time |
| New Keynesian Economics | A school of macroeconomic thought |
| New Paradigm | A new way of thinking |
| New York Board of Trade (NYBOT) | A commodity exchange |
| New York Mercantile Exchange (NYMEX) | A commodity exchange |
| New York Stock Exchange (NYSE) | A stock exchange |
| Newly Industrialized Country (NIC) | A country that has recently experienced rapid economic growth |
| News Trader | A trader who bases their decisions on news events |
| NEX | A stock exchange in Canada |
| Next-In, First-Out (NIFO) | An inventory valuation method |
| Next of Kin | Closest relative |
| NEXUS | A connection |
| Nifty 50 | A stock market index in India |
| Nigerian Scam | A type of fraud |
| Night Depository | A secure place to deposit money after hours |
| Nikkei | A stock market index in Japan |
| NINJA Loan | A loan with no income, no job, and no assets verification |
| Nixon Shock | A series of economic measures taken by President Richard Nixon |
| No Documentation Mortgage (No Doc) | A mortgage that requires little or no documentation |
| No-Load Fund | A mutual fund that does not charge a sales load |
| No-Par Value Stock | Stock with no assigned par value |
| No-Shop Clause | A clause in a contract that restricts a party from soliciting other offers |
| No Transaction Fee Mutual Fund | A mutual fund that does not charge transaction fees |
| Noise | Random fluctuations in market prices |
| Noise Trader | A trader who makes decisions based on noise rather than fundamentals |
| Nominal | In name only |
| Nominal Effective Exchange Rate (NEER) | An exchange rate index that is not adjusted for inflation |
| Nominal Gross Domestic Product | GDP that is not adjusted for inflation |
| Nominal Interest Rate | The interest rate before adjusting for inflation |
| Nominal Rate of Return | The return on an investment before adjusting for inflation |
| Nominal Value | The face value of a security |
| Nominal Yield | The annual coupon payment divided by the face value of a bond |
| Nominated Advisor (NOMAD) | A firm that advises companies on listing on the AIM market |
| Nomination Committee | A committee that nominates candidates for the board of directors |
| Nominee | A person who holds securities on behalf of someone else |
| Non-Accelerating Inflation Rate of Unemployment | The level of unemployment consistent with stable inflation |
| Non-Accredited Investor | An investor who does not meet the requirements to be an accredited investor |
| Non-Assessable Stock | Stock that cannot be assessed for additional payments |
| Non-Amortizing Loan | A loan where the principal balance remains constant |
| Non-Banking Financial Company (NBFC) | A financial institution that provides financial services but does not accept deposits |
| Non-Cash Charge | An expense that does not involve the outflow of cash |
| Non-Cash Item | Same as Non-Cash Charge |
| Non-Compete Agreement | An agreement that restricts someone from competing with a business |
| Non-Competitive Tender | An offer to buy securities at the average price |
| Non-Controlling Interest | A minority ownership stake in a subsidiary |
| Non-Covered Security | A security that is not covered by SIPC |
| Non-Deliverable Forward (NDF) | A forward contract that is settled in cash |
| Non-Deliverable Swap (NDS) | A swap that is settled in cash |
| Non-Disclosure Agreement (NDA) | An agreement that restricts the disclosure of confidential information |
| Non-Executive Director | A member of the board of directors who is not involved in day-to-day management |
| Non-Exempt Employee | An employee who is entitled to overtime pay |
| Non-Farm Payroll | A measure of employment in the U.S. |
| Non-GAAP Earnings | Earnings that are calculated using non-GAAP accounting methods |
| Non-Interest-Bearing Current Liability (NIBCL) | A liability that does not accrue interest |
| Non-Interest Income | Income from fees and other sources |
| Non-Issuer Transaction | A transaction that does not involve the issuer |
| Non-Marginable Securities | Securities that cannot be purchased on margin |
| Non-Marketable Security | A security that cannot be easily traded |
| Non-Member Banks | Banks that are not members of the Federal Reserve System |
| Non-Negotiable | Not transferable |
| Non-Objecting Beneficial Owner (NOBO) | A beneficial owner who does not object to the disclosure of their information |
| Non-Operating Asset | An asset that is not used in a company’s core business operations |
| Non-Operating Expense | An expense that is not related to a company’s core business operations |
| Non-Operating Income | Income that is not related to a company’s core business operations |
| Non-Owner Occupied | A property that is not occupied by the owner |
| Non-Performing Asset (NPA) | An asset that is not generating income |
| Non-Purpose Loan | A loan that is not for business or investment purposes |
| Non-Qualified Deferred Compensation (NQDC) | Deferred compensation that is not tax-qualified |
| Non-Qualified Plan | A retirement plan that is not tax-qualified |
| Non-Qualified Stock Option (NSO) | A stock option that is not tax-qualified |
| Non-Qualifying Investment | An investment that does not qualify for certain tax benefits |
| Non-Recourse Debt | Debt that is secured by a specific asset |
| Non-Recourse Finance | Financing where the lender’s recourse is limited to the collateral |
| Non-Refundable Tax Credit | A tax credit that cannot exceed the amount of taxes owed |
| Non-Renounceable Rights | Rights that cannot be transferred |
| Non-Sampling Error | An error that is not due to sampling |
| Non-Security | An investment that is not considered a security |
| Non-Sufficient Funds | Not enough money in an account |
| Non-Taxable Distribution | A distribution that is not subject to tax |
| Non-Traded REIT | A real estate investment trust that is not publicly traded |
| Nonaccrual Experience Method (NAE) | A method for estimating loan losses |
| Nonaccrual Loan | A loan that is not accruing interest |
| Noncallable | A bond that cannot be called before maturity |
| Noncancellable Insurance Policy | An insurance policy that cannot be canceled |
| Term | Definition |
|---|---|
| Nonce | A number used in cryptography |
| Nonconforming Mortgage | A mortgage that does not meet the requirements for purchase by Fannie Mae or Freddie Mac |
| Noncumulative | A type of preferred stock where dividends are not carried forward |
| Noncurrent Assets | Assets that are expected to be held for more than one year |
| Noncurrent Liability | A liability that is due in more than one year |
| Nonelective Contribution | A contribution to a retirement plan that is not made by the employee |
| Nonfeasance | Failure to perform a duty |
| Nonfinancial Asset | An asset that is not financial, such as real estate or commodities |
| Nonforfeiture Clause | A clause in an insurance policy that guarantees some benefits even if the policy lapses |
| Noninterest Expense | Expenses that are not interest expenses |
| Nonlinear Regression | A statistical method |
| Nonlinearity | A relationship between variables that is not linear |
| Nonmonetary Assets | Assets that are not monetary, such as fixed assets and intangible assets |
| Nonparametric Method | A statistical method that does not assume a specific distribution |
| Nonparametric Statistics | Same as Nonparametric Method |
| Nonpassive Income and Losses | Income and losses from actively participating in a business |
| Nonperforming Asset | An asset that is not generating income |
| Nonperforming Loan (NPL) | A loan that is not being repaid |
| Nonprofit Organization (NPO) | An organization that does not seek to make a profit |
| Nonrenewable Resource | A resource that cannot be replenished |
| Nonresident Alien | A foreign national who is not a resident of the country |
| Nontariff Barrier | A restriction on trade that is not a tariff |
| Nordic Model | An economic and social model common in Nordic countries |
| Normal-Course Issuer Bid (NCIB) | A repurchase of shares by a company in the normal course of business |
| Normal Distribution | A bell-shaped probability distribution |
| Normal Good | A good for which demand increases as income increases |
| Normal Profit | The minimum profit required to keep a business operating |
| Normal Retirement Age (NRA) | The age at which a person can receive full retirement benefits |
| Normal Yield Curve | A yield curve that slopes upward |
| Normalized Earnings | Earnings that have been adjusted for unusual or nonrecurring items |
| Normative Economics | Economic analysis that makes value judgments |
| North American Free Trade Agreement (NAFTA) | A trade agreement between Canada, Mexico, and the United States |
| North American Industry Classification System (NAICS) | A system for classifying businesses |
| North American Securities Administrators Association (NASAA) | A U.S. organization that represents state securities regulators |
| North Sea Brent Crude | A benchmark price for crude oil |
| Norwegian Krone (NOK) | The currency of Norway |
| Nostro Account | A bank account held by one bank at another bank in a foreign country |
| Not for Profit | Same as Nonprofit Organization |
| Not-Held Order | A type of order given to a broker |
| Notary | A person authorized to witness signatures |
| Notching | The practice of setting prices just below a psychological barrier |
| Note | A debt instrument with a maturity of less than one year |
| Notice of Assessment (NOA) | A notice from the tax authority of the amount of taxes owed |
| Notice of Default | A notice to a borrower that they are in default |
| Notice of Deficiency | A notice from the tax authority that there is a deficiency in taxes owed |
| Notice of Termination | A notice that a contract or agreement is being terminated |
| Notice to Creditors | A notice to creditors that a company is being liquidated |
| Notional Principal Amount | The principal amount of a derivative contract |
| Notional Value | Same as Notional Principal Amount |
| Novation | The substitution of a new party for an existing party in a contract |
| Null Hypothesis | A hypothesis that is tested in statistical analysis |
| Numeraire | A unit of account |
| Numismatics | The study of coins and medals |
| N.V. (Naamloze Vennootschap) | A Dutch term for a public limited company |
| NYSE Arca | An electronic trading platform of the NYSE |
| NYSE Composite Index | A stock market index of all the companies listed on the NYSE |