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Accounting & Investement Dictionary

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An alphabetical listing of General terms and items.

N   Dico Tools
Fifth letter in a Nasdaq stock symbol specifying that the issue is the company's third class of preferred shares.

Naive Diversification   Dico Tools
A strategy whereby an investor simply invests in a number of different assets in the hope that the variance of the expected return on the portfolio is lowered. In contrast, mathematical programming can be used to select the best possible investment weights. Related: Markowitz diversification.

Naked Option Strategies   Dico Tools
An unhedged strategy making exclusive use of one of the following: Short call strategy (selling or writing call options), and short put strategy (selling or writing put options). By themselves, these positions are called naked strategies because they do not involve an offsetting or risk-reducing position in another option or the underlying security. Related: Covered option strategies. Antithesis of covered option.

Naked Strategies   Dico Tools
Writing an option without owning the underlying asset. Holder is naked because holder may have agreed to sell something not owned.

Named Perils Insurance   Dico Tools
An insurance policy that names specific risks covered by the policy.

Narrow Market   Dico Tools
An inactive market, which displays large fluctuations in prices due to a low volume of trading.

Narrowing The Spread   Dico Tools
Reducing the difference between the bid and ask prices of a security.

NASD   Dico Tools
See: National Association of Securities Dealers

NASD Form FR-1   Dico Tools
A form required by the NASD of foreign dealers to ensure that firms participating in a new distribution of securities make a bona fide public offering.

Nasdaq   Dico Tools
See: National Association of Securities Dealers Automatic Quotation System

Nasdaq Small-capitalization Companies   Dico Tools
A group of 2000 companies with relatively small capitalization, which are listed separately and have at least two market makers.

Nasdaq Stock Market   Dico Tools
The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies.

National Association Of Investors Corporation   Dico Tools
A Michigan-based association that helps groups establish investment clubs.

National Association Of Securities Dealers   Dico Tools
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 Automat   Dico Tools
An electronic quotation system that provides price quotations to market participants about the more actively traded common stock issues in the OTC market. About 4000 common stock issues are included in the Nasdaq system.

National Bank   Dico Tools
A commercial bank approved by the U.S. Comptroller of the Currency, which is required to be a member of and purchase stocks in the Federal Reserve System.

National Credit Union Administration   Dico Tools
Federal agency that oversees and insures the federal credit union system, and is funded by its members.

National Debt   Dico Tools
Treasury bills, notes, bonds, and other debt obligations that constitute the debt owed by the federal government.

National Foundation For Consumer Credit   Dico Tools
A nonprofit organization that seeks to help consumers who have taken on too much debt by helping them work out payment plans and supplying credit counseling.

National Futures Association   Dico Tools
The futures industry self-regulatory organization established in 1982.

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National Market   Dico Tools
Related: Internal market

National Market Advisory Board   Dico Tools
Group 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   Dico Tools
Refers to over-the-counter trading. System of trading OTC stocks under the sponsorship of the NASD. Must meet certain criteria for size, profitability and trading activity. More comprehensive information is available for N.M.S. stocks than for non-N.M.S. stocks traded OTC (high, low, and last-sale prices, cumulative volume figures, and bid and ask quotations throughout the day). This is due to the fact that market makers must report the actual price and number of shares in each transaction within 90 seconds verses nonreal-time reporting for non-NMS stocks (thus, last sale prices and minute-to-minute volume updates are not possible).

National Quotation Bureau   Dico Tools
A service that publishes bid and offer quotes from market makers in OTC transactions.

National Securities Clearing Corporation   Dico Tools
A clearing corporation that facilitates the settlement of accounts among brokerage firms, exchanges, and other clearing corporations.

National Stock Exchange   Dico Tools
Second-largest stock exchange based in India.

Nationalization   Dico Tools
A government takeover of a private company.

Natural   Dico Tools
Used in the context of general equities. Customer buyer or seller, versus a principal or profile interest. Legitimate, real.

Natural Logarithm   Dico Tools
Logarithm to the base e (approximately 2.7183).

Natural Resources   Dico Tools
Assets that are physically consumed or waste away, such as oil, minerals, gravel, and timber.

NAV   Dico Tools
See: Net asset value

NCUA   Dico Tools
National Credit Union Administration (NCUA): A federal agency that charters and oversees federal credit unions. The NCUA insures deposits at federal credit unions and at some state credit unions against certain losses.

Near Money   Dico Tools
Assets that are easily convertible into cash, such as money market accounts and bank deposits.

Nearby   Dico Tools
The nearest active trading month of a financial or commodity futures market. Related: Deferred futures.

Nearby Futures Contract   Dico Tools
When several futures contracts are considered, the contract with the closest settlement date is called the nearby futures contract. The next (or the "next out") futures contract is the one that settles just after the nearby futures contract. The contract farthest away in time from settlement is called the most distant futures contract.

Nearest Month   Dico Tools
The expiration date of an option or future that is closest to the present.

Negative Amortization   Dico Tools
A loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amortize the loan. The unpaid interest is added to the outstanding principal, to be repaid later.

Negative Carry   Dico Tools
Related: Net financing cost

Negative Cash Flow   Dico Tools
Occurs when spending in a business is greater than earnings.

Negative Convexity   Dico Tools
A bond characteristic such that the 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 fixed-rate mortgage may lose value as rates go down because of prepayments.

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Negative Covenant   Dico Tools
A bond covenant that limits or prohibits certain actions unless the bondholders agree.

Negative Duration   Dico Tools
Occurs when the price of an MBS moves in the same direction as interest rates.

Negative Income Tax   Dico Tools
A proposal to assist taxpayer with below-subsistence-level incomes. After filing a tax return, such persons would receive a subsidy to bring them up above the poverty level.

Negative Pledge Clause   Dico Tools
A bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders.

Negative Working Capital   Dico Tools
Occurs when current liabilities exceed current assets, which can lead to bankruptcy.

Negative Yield Curve   Dico Tools
When the yield on a short-term security is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term borrowing.

Neglected Firm Effect   Dico Tools
The tendency of firms that are neglected by security analysts to outperform firms that are the subject of considerable attention.

Negotiable   Dico Tools
A security whose title is transferable by delivery . See also: Negotiable instrument.

Negotiable Instrument   Dico Tools
An unconditional order or promise to pay some amount of money, easily transferable from one party to another.

Negotiable Order Of Withdrawal   Dico Tools
Demand deposits that pay interest.

Negotiated Certificate Of Deposit   Dico Tools
A large-denomination CD, generally $1MM or more, that can be sold but cannot be cashed in before maturity.

Negotiated Commission   Dico Tools
An unfixed broker's commission that is determined through negotiation, depending on the specifics of the trades performed.

Negotiated Markets   Dico Tools
Markets in which each transaction is separately negotiated between buyer and seller (i.e., an investor and a dealer).

Negotiated Offering   Dico Tools
An offering of securities for which the terms, including underwriters' compensation, have been negotiated between the issuer and the underwriters.

Negotiated Sale   Dico Tools
Determining the terms of an offering by negotiation between the issuer and the underwriter rather than through competitive bidding by underwriting groups.

Negotiated Underwriting   Dico Tools
A securities offering process in which the purchase price paid to the issuer and the public offering price are determined by negotiation rather than through competitive bidding.

NEO   Dico Tools
Abbreviation for nonequity options, which are options contracts on foreign currencies, debt issues, commodities, and stock indexes.

Net   Dico Tools
The gain or loss on a security sale as measured by the selling price of a security less the adjusted cost of acquisition.

Net Adjusted Present Value   Dico Tools
The adjusted present value minus the initial cost of an investment.

Net Advantage Of Refunding   Dico Tools
The net present value of the savings from a refunding.

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Net Advantage To Leasing   Dico Tools
The net present value of entering into a lease financing arrangement rather than borrowing the necessary funds and buying the asset.

Net Advantage To Merging   Dico Tools
The difference in total post- and pre-merger market value minus the cost of the merger.

Net After-tax Gain   Dico Tools
Capital gain after income taxes have been paid.

Net Asset Value   Dico Tools
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 Assets   Dico Tools
The ownership interest in the assets of an entity; equal total assets minus total liabilities.

Net Benefit To Leverage Factor   Dico Tools
A 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 Value   Dico Tools
The current book value of an asset or liability; that is, its original book value net of any accounting adjustments such as depreciation.

Net Capital Requirement   Dico Tools
SEC requirement that member firms and nonmember securities broker-dealers maintain a maximum ratio of indebtedness to liquid capital of 15 to 1.

Net Cash Balance   Dico Tools
Beginning cash balance plus cash receipts minus cash disbursements.

Net Change   Dico Tools
This is the difference between a day's last trade and the previous day's last trade.

Net Current Assets   Dico Tools
The difference between current assets and current liabilities, also known as working capital.

Net Errors And Omissions   Dico Tools
In balance of payments accounting, net errors and omissions record the statistical discrepancies that arise in gathering balance of payments data.

Net Financing Cost   Dico Tools
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 Float   Dico Tools
Sum of disbursement float and collection float.

Net Income   Dico Tools
A measure of the overall performance of a business entity; equal to revenues minus expenses for the period.

Net Income Per Share Of Common Stock   Dico Tools
See: Earnings per share

Net Interest Cost   Dico Tools
The total amount of interest that will be paid on a debt obligation by a corporate or municipal bond issuer.

Net Investment   Dico Tools
Gross, or total, investment minus depreciation.

Net Investment Income Per Share   Dico Tools
Income received by an investment company from dividends and interest on investments less administrative expenses, divided by the number of outstanding shares.

Net Lease   Dico Tools
A lease arrangement under which the lessee is responsible for all property taxes, maintenance expenses, insurance, and other costs associated with keeping the asset in good working condition.

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Net Loss   Dico Tools
A measure of the overall performance of a business entity; equal to revenues minus expenses for the period.

Net Operating Losses   Dico Tools
Losses that a firm can take advantage of to reduce taxes.

Net Operating Margin   Dico Tools
The ratio of net operating income to net sales.

Net Parity   Dico Tools
Antithesis of gross parity. Convertibles: Price of a convertible security including accrued interest. International: Price of international security including commissions, fees, stamp duty, and other transaction costs, translated into U.S. dollar amounts.

Net Period   Dico Tools
The period of time between the end of the discount period and the date payment is due.

Net Position   Dico Tools
The value of the position subtracting the initial cost of setting up the position. For example, if 100 options where purchased for $1 each and the option is currently trading for $9, the value of the net position is $900 - $100 = $800.

Net Present Value   Dico Tools
The present value of the expected future cash flows minus the cost.

Net Present Value Of Future Investments   Dico Tools
The present value of the total sum of NPVs expected to result from all of the firm's future investments.

Net Present Value Of Growth Opportunities   Dico Tools
A model valuing a firm in which net present value of new investment opportunities is explicitly examined.

Net Present Value Rule   Dico Tools
An investment is worth making if it has a positive NPV Projects with negative NPVs should be rejected.

Net Proceeds   Dico Tools
The difference between maturity value and discount when a note receivable is discounted.

Net Profit Margin   Dico Tools
Net income divided by sales; the amount of each sales dollar left over after all expenses have been paid.

Net Quick Assets   Dico Tools
Cash, marketable securities, and accounts receivable less current liabilities.

Net Realizable Value   Dico Tools
The selling price of an item less reasonable selling costs.

Net Realizable Value Of Accounts Receivable   Dico Tools
The net amount that would be received if all receivables considered collectible were collected; equal to total accounts receivable less the allowance for uncollectible accounts; also called the book value of accounts receivable.

Net Realized Capital Gains Per Share   Dico Tools
Capital gains realized by an investment company minus any capital losses divided by the total number of the company's outstanding shares.

Net Sales   Dico Tools
Gross sales less sales discounts and sales returns and allowances.

Net Sales Transaction   Dico Tools
Refers to over-the-counter trading. 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 commissions in addition to the print or quotation prices.

Net Salvage Value   Dico Tools
The after-tax net cash flow for terminating the project.

Net Tangible Assets Per Share   Dico Tools
All of a company's assets except patents, trademarks, and other intangible assets minus all liabilities and the par value of preferred stock, divided by the number of shares outstanding.

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Net Tax Liability   Dico Tools
The amount of tax computed by subtracting tax credits from the gross tax liability.

Net Transaction   Dico Tools
A securities transaction in which no commissions or extra fees are paid, such as in an initial public offering.

Net Working Capital   Dico Tools
Current assets minus current liabilities. Often simply referred to as working capital.

Net Worth   Dico Tools
Common stockholders' equity which consists of common stock, surplus, and retained earnings.

Net Yield   Dico Tools
The rate of return on a security minus purchase costs, commissions, or markups.

Netting   Dico Tools
Reducing transfers of funds between subsidiaries or separate companies to a net amount.

Netting Out   Dico Tools
To get or bring in as a net; to clear as profit.

Network A/Network B   Dico Tools
See: Consolidated tape

Neutral Hedge   Dico Tools
Hedge that is expected to yield a dollar-neutral result of the combined position, regardless of price change in any part of the hedge securities. For any convertible trading at a premium, this ratio is less than 100%. The higher the convertible premium, the lower a ratio must be to be neutral. See: Delta.

Neutral Period   Dico Tools
In the Euromarket, a period over which 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.

New Account Report   Dico Tools
A broker's document including information about a new client. See: Know your customer.

New High/new Low   Dico Tools
A stock valued at its highest or lowest price in the last year.

New Issue   Dico Tools
Securities that are publicly offered for the first time, whether in an IPO or as an additional issue of stocks or bonds by a company that is already public.

New Listing   Dico Tools
A security that has just been entered on a stock or bond exchange for trading.

New Money   Dico Tools
In a Treasury auction, the amount by which the par value of the securities offered exceeds that of those maturing.

New York Cotton Exchange   Dico Tools
Commodities exchange in New York trading futures and options on cotton, frozen concentrated orange juice, and potatoes, as well as interest rate, currency, and index futures and options.

New York Futures Exchange   Dico Tools
A wholly owned subsidiary of the NYSE that trades futures and futures options on the NYSE composite index.

New York Mercantile Exchange   Dico Tools
The world's largest physical commodity futures exchange.

New York Stock Exchange   Dico Tools
Also known as the Big Board or the Exchange.

New Zealand Stock Exchange   Dico Tools
Automated, screen-based national trading system based in Wellington.

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New-issues Market   Dico Tools
The market in which a new issue of securities is first sold to investors. This is not a separate market but refers to a niche of the overall market.

News Out   Dico Tools
Refers to over-the-counter trading. A news story concerning the stock being considered has recently been posted on one of the news services, such as the Dow Jones News Service or Reuters. A courtesy standard in trading is to mention that "news is out," in case the other party is unaware of the new development.

Next Day Settlement   Dico Tools
Transaction in which the contract is settled the day after the trade is executed. See: Settlement date.

Next Futures Contract   Dico Tools
The contract settling immediately after the nearby futures contract.

Nexus   Dico Tools
A set or collection of something.

NFA   Dico Tools
See: National Futures Association

NICs   Dico Tools
Newly Industrialized Countries, which are countries with high-growth industrial economies, such as Hong Kong and Malaysia.

NIF   Dico Tools
See: Note issuance facility

Nifty Fifty   Dico Tools
Institutional investor' 50 most popular stocks.

Nikkei Stock Average   Dico Tools
Applies mainly to international equities. Price-weighted average of 225 stocks of the first section of the Tokyo Stock Exchange started on May 16, 1949. Japanese equivalent of the U.S. Dow.

Nine-bond Rule   Dico Tools
An NYSE rule requiring that orders for nine bonds or fewer stay on the floor for one hour to seek a market.

NM   Dico Tools
Abbreviation for "not meaningful".

NMS   Dico Tools
See: National Market System

No Autex   Dico Tools
Used in the context of general equities. "No buy or sell interest should be entered into the Autex (advertising) system." Inquirers do not want exposure of an inquiry to affect the price at which they hope to ultimately transact the trade, hence disturbing the customer's picture.

No Book   Dico Tools
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.

No Par Stock   Dico Tools
Stock that does not have a par value printed on the face of the stock certificate.

No-action Letter   Dico Tools
A letter from the Securities and Exchange Commission agreeing that the commission will take no civil or criminal action against a party, regarding a specific activity.

No-brainer   Dico Tools
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.

No-load Fund   Dico Tools
A mutual fund that does not impose a sales commission. Related: Load fund, no-load mutual fund.

No-load Mutual Fund   Dico Tools
An open-end investment company whose 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 has neither a sales charge nor a distribution fee.

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No-load Stock   Dico Tools
Shares that can be purchased from the issuing companies themselves, so that broker fees and commissions can be avoided.

No-par-value Stock   Dico Tools
A stock with no par value given in the charter or stock certificate.

NOB Spread   Dico Tools
Notes over bonds spread. This is the difference in yield between Treasury notes (maturing in 2 to 10 years) and Treasury bonds (maturing in 15 or more years), which is traded using Treasury note and bond futures.

Noise   Dico Tools
Price and volume fluctuations that can confuse interpretation of market direction. Used in the context of general equities. Stock market activity caused by program trades, dividend rolls, and other phenomena not reflective of general sentiment. Antithesis of real.

Nominal   Dico Tools
In name only. Differences in compounding cause the nominal rate to differ from the effective interest rate. Inflation causes the purchasing power of money to differ from one time to another.

Nominal Accounts   Dico Tools
Accounts that are closed to a zero balance at the end of each accounting period; temporary accounts generally appearing on the income statement.

Nominal Annual Rate   Dico Tools
An effective rate per period multiplied by the number of periods in a year. Same as annual percentage rate.

Nominal Cash Flow   Dico Tools
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.

Nominal Dollars   Dico Tools
Dollars that are not adjusted for inflation.

Nominal Exchange Rate   Dico Tools
The actual foreign exchange quotation in contrast to the real exchange rate, which has been adjusted for changes in purchasing power.

Nominal Exercise Price   Dico Tools
The exercise price of a GNMA option contract, which equals the unpaid principal balance multiplied by the adjusted exercise price.

Nominal Income   Dico Tools
Income that has not been adjusted for inflation and decreasing purchasing power.

Nominal Interest Rate   Dico Tools
The interest rate unadjusted for inflation.

Nominal Price   Dico Tools
Price quotations on futures for a period in which no actual trading took place.

Nominal Quotation   Dico Tools
Used in the context of general equities. Bid and offer prices given by a market maker for the purpose of valuation, not as an invitation to trade; must be specifically identified as such by prefixing the quotes FYI (for your information) or FVO (for valuation only).

Nominal Yield   Dico Tools
The income received from a fixed income security in one year divided by its par value. See also: Coupon rate.

Nominee   Dico Tools
A person or firm to whom securities or other properties are transferred to facilitate transactions, while leaving the customer as the actual owner.

Nonaccredited Investor   Dico Tools
Wealthy, sophisticated investors who do not meet SEC net worth requirements. These investors require less protection because of large financial resources, but only 35 nonaccredited investor can be included per investment.

Noncallable   Dico Tools
A preferred stock or bond that cannot be redeemed whenever desired by the issuer.

Noncash Charge   Dico Tools
A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow.

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Noncash Items   Dico Tools
Items included in the determination of net income on an accrual basis that do not affect cash; examples are depreciation and amortization.

Noncash Transactions   Dico Tools
Investing and financing activities that do not affect cash; if significant, they are disclosed below the statement of cash flows or in the notes to the financial statements.

Nonclearing Member   Dico Tools
An exchange member firm that is not able to clear transactions, and must pay another member firm to carry out its clearing operations.

Noncompete   Dico Tools
A provision in a number of employment contracts that prohibits an employee from working for a competing firm for a specified number of years after the employee leaves the firm.

Noncompetitive Bid   Dico Tools
In a Treasury auction, bidding for a specific amount of securities at the price, whatever it may turn out to be, equal to the average price of the accepted competitive bids.

Noncontributory Pension Plan   Dico Tools
A pension plan that is fully paid for by the employer, requiring no employee contributions.

Noncumulative   Dico Tools
Applies mainly to convertible securities. Type of preferred stock on which unpaid or omitted dividends do not accrue. Omitted dividends are, as a rule, gone forever.

Noncumulative Preferred Stock   Dico Tools
Preferred stock whose holders must forgo dividend payments when the company misses a dividend payment. Related: Cumulative preferred stock.

Noncurrent Asset   Dico Tools
Any asset that is expected to be held for the whole year, not sold or exchanged, such as real estate, machinery, or a patent.

Noncurrent Liability   Dico Tools
A liability due in one year.

Nondiscretionary Trust   Dico Tools
A personal trust whose trustee has no discretion in deciding how income will be distributed to the beneficiary.

Nondiversifiability Of Human Capital   Dico Tools
The difficulty of hedging one's human capital (the unique capabilities and expertise of individuals) and employment effort.

Nondiversifiable Risk   Dico Tools
Risk that cannot be eliminated by having a large portfolio of many assets.

Nonfinancial Assets   Dico Tools
Physical assets such as real estate and machinery.

Nonfinancial Services   Dico Tools
Such things as freight, insurance, passenger services, and travel.

Noninsured Plans   Dico Tools
Defined benefit pension plans that are not guaranteed by life insurance products. Related: Insured plans.

Noninterest-bearing Note   Dico Tools
A note without periodic interest payment, but selling at a discount and maturing at face value. See: Zero-coupon bond.

Nonmarketed Claims   Dico Tools
Claims that cannot be easily bought and sold in the financial markets, such as those of the government and litigants in lawsuits.

Nonmember Firm   Dico Tools
Used 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   Dico Tools
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.

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Nonparticipating Life Insurance Policy   Dico Tools
Life 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 Asset   Dico Tools
An asset that is not effectively producing income, such as an overdue loan.

Nonproductive Loan   Dico Tools
A 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.

Nonprofit Organization   Dico Tools
An entity without a profit objective, oriented toward providing services efficiently and effectively.

Nonpublic Information   Dico Tools
Information 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 Loan   Dico Tools
A loan with securities pledged as collateral, but which is not to be used in securities trading or transactions.

Nonqualifying Annuity   Dico Tools
An 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 Option   Dico Tools
An employee stock option that does not satisfy IRS qualifying rules and therefore is liable for taxation upon exercise .

Nonrated   Dico Tools
A bond that has not been rated by a large rating agency, usually because the issue is too small.

Nonrecourse   Dico Tools
In the case of default, the lender has ability to claim assets over and above what the limited partners contributed.

Nonrecourse Loan   Dico Tools
A loan taken by limited partners used to finance their portion of the partnership, which is secured by their ownership in the venture.

Nonrecurring Charge   Dico Tools
A one-time expense or credit shown in a company's financial statement.

Nonredeemable   Dico Tools
Not permitted, under the terms of an indenture, to be redeemed.

Nonrefundable   Dico Tools
Not permitted, under the terms of an indenture, to be refundable.

Nonreproducible Assets   Dico Tools
A tangible asset with unique physical properties, like a parcel of land, a mine, or a work of art.

Nonsystematic Risk   Dico Tools
Nonmarket 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.

Nontradables   Dico Tools
Goods and services produced and consumed domestically that are not close substitutes to import or export goods and services.

Nonvoting Stock   Dico Tools
A security that does not entitle the holder to vote on the corporation's resolutions or elections.

Normal Annuity Form   Dico Tools
The manner in which retirement benefits are paid out.

Normal Backwardation Theory   Dico Tools
Holds that the futures price will be bid down to a level below the expected spot price.

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Normal Deviate   Dico Tools
Related: Standardized value

Normal Investment Practice   Dico Tools
The 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   Dico Tools
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 Portfolio   Dico Tools
A 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   Dico Tools
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 Variable   Dico Tools
A random variable that has a normal probability distribution.

Normal Retirement   Dico Tools
The age or number of working years after which a pension plan beneficiary can retire and receive unreduced benefits immediately.

Normal Trading Unit   Dico Tools
See: Round lot.

Normalized Earnings   Dico Tools
Earnings that have been adjusted in order to take into account the effect of cycles in the economy.

Normalizing Method   Dico Tools
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 Us   Dico Tools
Refers 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 Held Order   Dico Tools
Applies mainly to international equities. Market or limit order in which the customer does not desire to transact automatically at the inside market (market held) but instead has given the trader or floor broker (listed stock) time and price discretion in transacting on a best-efforts basis. This will not hold the broker responsible for missing the price within the limits (limit not held) or obtaining a worse price (market not held). The order is marked "not held, disregard tape/DRT, take time" or bears any such qualifying notation, excluding "or better." See: Held order.

Not Rated   Dico Tools
A rating service indicator, neither positive nor negative, showing that a security or company has not been rated.

Not-for-profit   Dico Tools
An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses.

Not-sufficient-funds Check   Dico Tools
A bank check having insufficient funds to back it.

Note   Dico Tools
Debt instruments with initial maturities longer than one year and shorter than 10 years.

Note Agreement   Dico Tools
A contract for privately placed debt.

Note Issuance Facility   Dico Tools
An agreement by which a syndicate of banks indicates a willingness to accept short-term notes from borrowers and resell these notes in the Eurocurrency markets.

Note Payable   Dico Tools
A debt owed to a creditor, evidenced by an unconditional written promise to pay a certain sum of money on or before a specified future date.

Note Receivable   Dico Tools
A claim against a debtor, evidenced by an unconditional written promise to pay a certain sum of money on or before a specified future date.

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Notes To Financial Statements   Dico Tools
Explanatory information considered an integral part of the financial statements.

Notes To The Financial Statements   Dico Tools
A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements.

Notice Day   Dico Tools
A day on which notices of intent to deliver pertaining to a specified delivery month may be issued. Related: Delivery notice.

Notice Of Sale   Dico Tools
A notice advertising a new issue of municipal securities and inviting underwriters to submit competitive bids.

Notification Date   Dico Tools
The day the option is either exercised or expires.

Notional Principal Amount   Dico Tools
In an interest rate swap, the predetermined dollar principal on which the exchanged interest payments are based.

Nouveau Marche   Dico Tools
An equity market unit of the Paris Bourse that deals solely in innovative, high-growth companies.

Novation   Dico Tools
Defeasance whereby the firm's debt is cancelled.

NOW   Dico Tools
See: Negotiable Order of Withdrawal

NPV   Dico Tools
See: Net present value

NPV Profile   Dico Tools
A graph of NPV as a function of the discount rate.

NSF   Dico Tools
NSF (not sufficient funds) check: A check that is not honored by a bank because of insufficient cash in the customer's account.

Numismatist   Dico Tools
Collector of historical coins and currencies.

NYSE   Dico Tools
See: New York Stock Exchange

NYSE Composite Index   Dico Tools
Composite index covering price 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, at a level of 50.00, and is weighted according to the number of shares listed for each issue. Print changes in the index are converted to dollars and cents so as to provide a meaningful measure of changes in the average price of listed stocks. The composite index is supplemented by separate indexes for four industry groups: industrial, transportation, utility, and finance.

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