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

Category: Finance Dictionary

NET LOSS

in an accounting period total costs and expenses exceeds total revenue by this amount.

NET PURCHASE RECORDING

Recording method for cash discounts or purchases accounting. Its journal entry basis is invoice amount minus expected cash discount. The discount is charged to discounts lost account if the discount is not

NET-TO-NET LEASE

A portion of everything: rent, taxes, insurance, and maintenance fees is paid by the renter under this specific type of agreement.

NEW CLASSICAL ECONOMICS

Macroeconomic thought as a knowledge base. Emerging during the 1970s, based on roles known as rational economic agents, and rational expectations theory. It is seen as an extreme monetarism formulation. It argues

NEW YORK STOCK EXCHANGE (NYSE) COMPOSITE INDEX

Market capitalization value weighted index. Covers common stock price movements as ordinary shares of some 2300 firms listed on NYSE. , All shares relate to an aggregate market capitalization value set December

NITRIFICATION

Microorganisms in soil and water oxidize ammonium (NH4+) ions into nitrite (NO2) ion and then nitrate (NO3) ions. Plants absorb nitrate ions as essential nutrients. Oxygen helps convert or synthesize the nitrates

NO OBSERVABLE ADVERSE EFFECT LEVEL (NOAEL)

Named tolerance level over a human’s lifetime exposure, averaged as 70 years, in the human diet. From long-term toxicological studies, pesticide or other agricultural chemical’s impact is established. Also known as no

NO-LOAD DRIP

Shareholders can reinvest dividends they receive into more shares without any fees in this type of program offered by publicly-held companies. The company directly issues the resulting stock purchased.

OLIGOPSONY

A market with a few buyers who control the price paid.

OVERLINED

Temporarily paying off all commercial debt creating extra swingline availability.

PASSIVE LOSS RULES

Rules limiting tax deductions and income that go untaxed. This is limited by passive source earnings.

PFANDBRIEFE

A bond that converts its assets into negotiable securities. The assets remain on the balance sheet but are reserved for investors in the event of default.

PORTFOLIO DIVERSIFICATION

Combining non related securites to ensure more profit. Refer to diversification, diversifiable risk, nondiversifiable risk, and portfolio theory.

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