Investment Glossary

Naked Call

An investor selling a call options contract without actually owning the underlying security.

NASDAQ

An automated communication network used to facilitate transactions of qualified over-the-counter or exchange listed securities. Unlike the AMEX or NYSE, the NASDAQ does not have a physical trading floor, all trades are completed through the computer system.

National Association of Securities Dealers (NASD)

See Financial Industry Regulatory Authority(FINRA).

National Securities Clearing Corporation (NSCC)

A major clearing corporation owned jointly by the NYSE, AMEX, and NASDAQ to streamline trade comparison, settlement and assignment procedures.

NAV

See Net Asset Value.

Negotiable

A feature of a security enabling the owner to transfer title or ownership.

Net Assets

The total assets held in a mutual fund.

Net Asset Value

The value of a fund's assets divided by the number of its outstanding shares.

Net Earnings (Net Income)

Also known as the bottom line, this is the profit a company realizes after all costs, expenses and taxes have been paid. It is calculated by subtracting business, depreciation, interest and tax costs from revenues. Also called net income or net profit.

Net Margin

A measure of company profitability after deducting all costs, expenses and taxes. It is calculated by dividing net earnings by revenues, the resulting percentage is the operating efficiency of a company.

Net Income

See Net Earnings.

New Issue

A company issuing security to the market for the first time or issuing additional shares.

New York Stock Exchange (NYSE)

The oldest and most famous market for the buying and selling of securities. Located at 11 Wall Street, New York, New York.

Nil Paid

A new issue of shares dealt on the stock market on which no payment has yet been made, usually from a new issue or rights issue.

No-Load

Without any sales commissions.

No-Load Fund

An open-end fund purchased directly from a fund company or brokerage firm at the fund's net asset value, without charges to purchase or redeem shares.

Noise

Price and volume fluctuations that do not show a clear market direction.

Nominal Yield

The interest rate stated on the face of the bond.

Nominee Name

Name in which a security is registered and held on behalf of the beneficial owner.

Noncallable

A note or bond that cannot be called before maturity.

Noncompetitive Tender

The purchase of treasury bills, notes, and bonds directly from the Federal Reserve at the average price of accepted competitive bids during an auction of new securities.

Noncumulative Preferred Stock

The type of preferred stock that does not pay accrued dividends to its holders.

Note

The general name for agency security with a maturity of less than 10 years.

NTF

Stands for "No-Transactions-Fee", describes mutual funds that don't charge a transactions fee.

NYSE

See New York Stock Exchange.