Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

NAPHTHA

Volatile and highly flammable hydrocarbon liquid. Mixtures group member derived from coal tar or petroleum in specific distillation ranges. Contain large aromatic compounds’ proportions. Used mainly as solvents and paint thinners, naphthas

NATIONAL LABOR RELATIONS ACT (NLRA)

Designed to protect employee and employer rights, encourage collective bargaining, and prohibit particular management policies detrimental to the healthy of businesses, workers, and the US economy. Enacted by Congress in 1935.

NEED FOR AFFILIATION

In order to motivate their fellow employees, building warm and caring relationships is a necessity for managers in a business setting. different affiliation levels satisfy different employee types. Those who need a

NEGATIVE EXTERNALITY

Occurs when a product or decision exceeds the society’s private cost. It is generally viewed as a market failure because the consumption level or the product’s production exceeds society requires. A negative

NEGOTIABLE CERTIFICATE OF DEPOSIT (CD)

A CD that is short-term, 2 to 52 weeks, and of a large denomination, $100,000 minimum. Negotiable CDs issued by large banks are freely traded in secondary markets. It is typically issued

NET ADVANTAGE TO MERGING

An indication that a business might be worth more and would potentially be more profitable after a merger. This advantage is found by subtracting the business’s market value before the merger, subtracting

NET ERRORS AND OMISSIONS

Payments accounting balance showing statistical discrepancies. Data collection inaccuracies, such as adding an extra zero in a column that tallies payments due against payments collected.

NET INTEREST MARGIN

Calculated as: (Investment Returns minus Interest Expenses) divided by Average Earning Assets Liabilities.

NET PAYOFF

Calculated as: recognized security revenue minus operating expenses.

NET RECEIVABLES

Company’s recorded amount as money to be repaid minus outstanding debt costs.

NET WORTH

Firm’s value to its owners, typically stockholders or shareholders. Value is usually shown on the firm’s balance sheet. Issued share capital plus retained earnings plus capital gains equals net worth. Also known

NETWORK SERVICE PROVIDER (NSP)

Entity as a high volume data capacity renter to limited internet service providers (ISP) who rent capacity to several internet users, known as subscribers.

NEW OLD STOCK

Items in stock, still in their original packaging, never sold. Also known as new unused stock or surplus stock.

NEWS CORPORATION

Founded by Rupert Murdoch, this media company is global, vertically-integrated. Day-to-day corporate operations primarily occur in the US, Continental Europe, Australia, Asia, Latin America, and the UK. Every media, film, cable, magazines,

NIGERIAN SCAM

Mail and email fraud based on false pretenses tempting people to send money or disclosed banking account information. The scam is someone inherited a large sum of money and needs assistance to

NO COST CHANGE

Overhead costs may occur but not affect a contract’s prices when a contract changes.

NOAH EFFECT

A continuous factors’ series suffering abrupt, disconnected interruptions. These changes affect value distribution all along the continuum, often skipping values in an upward or downward direction. Also refer to Joseph Effect, anti-persistence,

NON-COMPETITIVE TRADING

A dealer who does not expose his trading to the market and just gives it to his clients. This is illegal.

NO-SHOP CLAUSE

An agreement clause between an owner and a prospective buyer to suspend all other purchase negotiations for a stated time period. In other words, the seller agrees to stop seeking other acquisition

OPEN OUTCRY

When floor traders agree on terms by communication or hand signals.

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