Financial and Investment Glossary
Financial Dictionary
Nasdaq Stock Market
The second largest stock market in the United States. Launched in 1971, the National Association of Securities Dealers Automated Quotation (Nasdaq) market is the nation's first electronic stock market, linking buyers and sellers via a computer network.
Needs
The income you will need to cover your expenses in retirement. Your expenses may drop in retirement if you stop commuting, pay off your mortgage, or reduce your entertaining. Not everyone sees their expenses drop, however.
Net Asset Value (NAV)
The value of one share of a mutual fund. Except for money-market funds, the value of a mutual fund share usually changes daily. The net asset value comes from dividing the value of all the fund's holdings by the number of shares in the fund.
Net Assets
Also known as Net Worth, the difference between the total value of your assets and possessions and your liabilities.
Net Earnings Per Share (Net EPS)
A company's latest yearly earnings divided by the number of shares outstanding at that time.
Net Income
The amount of a company's total sales (revenue) remaining after subtracting all of its costs, in a given period of time; also known as "net earnings".
Net Present Value (NPV)
A method of evaluating investments whereby the cost of the initial investment is subtracted from the present value of expected future cash flows.
Net Sales
A company's total sales minus certain types of returns, allowances and discounts.
Net Worth
Also known as Net Assets, the difference between the total value of your assets and possessions and your liabilities. For a corporation, net worth is the amount by which the corporation's total assets exceed its total liabilities on the balance sheet.
New York Stock Exchange (NYSE)
The largest stock exchange in the world and one of the oldest. The NYSE traces its beginnings to 1792 when brokers and merchants on Wall Street signed the Buttonwood Agreement, detailing how they would trade securities. As a central auction market, the NYSE conducts business on a trading floor where traders buy and sell securities from specialists, or market makers in a specific stock.
No-Load Mutual Fund
A fund that has no sales fees to purchase or sell shares of the fund.
Non-Deductible IRAs
Anyone can contribute up to $2,000 of earned income yearly to a non-deductible IRA. Earnings grow tax-deferred.
Non-Investment Account
Bank accounts, cash, credit cards, other assets, and other liability accounts.
Nondisclosure Agreement
A legal document in which the person signing agrees to refrain from disclosing proprietary and confidential information.
Nonprofit Corporation
A business entity formed for civil, social, or charitable purposes for which the generation of profit is not part of its function. Nonprofit corporations are taxed differently and are incorporated differently than for-profit business organizations.
The second largest stock market in the United States. Launched in 1971, the National Association of Securities Dealers Automated Quotation (Nasdaq) market is the nation's first electronic stock market, linking buyers and sellers via a computer network.
Needs
The income you will need to cover your expenses in retirement. Your expenses may drop in retirement if you stop commuting, pay off your mortgage, or reduce your entertaining. Not everyone sees their expenses drop, however.
Net Asset Value (NAV)
The value of one share of a mutual fund. Except for money-market funds, the value of a mutual fund share usually changes daily. The net asset value comes from dividing the value of all the fund's holdings by the number of shares in the fund.
Net Assets
Also known as Net Worth, the difference between the total value of your assets and possessions and your liabilities.
Net Earnings Per Share (Net EPS)
A company's latest yearly earnings divided by the number of shares outstanding at that time.
Net Income
The amount of a company's total sales (revenue) remaining after subtracting all of its costs, in a given period of time; also known as "net earnings".
Net Present Value (NPV)
A method of evaluating investments whereby the cost of the initial investment is subtracted from the present value of expected future cash flows.
Net Sales
A company's total sales minus certain types of returns, allowances and discounts.
Net Worth
Also known as Net Assets, the difference between the total value of your assets and possessions and your liabilities. For a corporation, net worth is the amount by which the corporation's total assets exceed its total liabilities on the balance sheet.
New York Stock Exchange (NYSE)
The largest stock exchange in the world and one of the oldest. The NYSE traces its beginnings to 1792 when brokers and merchants on Wall Street signed the Buttonwood Agreement, detailing how they would trade securities. As a central auction market, the NYSE conducts business on a trading floor where traders buy and sell securities from specialists, or market makers in a specific stock.
No-Load Mutual Fund
A fund that has no sales fees to purchase or sell shares of the fund.
Non-Deductible IRAs
Anyone can contribute up to $2,000 of earned income yearly to a non-deductible IRA. Earnings grow tax-deferred.
Non-Investment Account
Bank accounts, cash, credit cards, other assets, and other liability accounts.
Nondisclosure Agreement
A legal document in which the person signing agrees to refrain from disclosing proprietary and confidential information.
Nonprofit Corporation
A business entity formed for civil, social, or charitable purposes for which the generation of profit is not part of its function. Nonprofit corporations are taxed differently and are incorporated differently than for-profit business organizations.