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

Category: Finance Dictionary

MOTIVATING

Influencing the way people think or behave individually or in groups by incentives, persuasion, or mental and physical stimulants.

MULIPLEXER

To allow two or more signals to pass over one communication circuit, like a phone line, this specific type of electronic device combines the signals. At the receiving end, the combined signal

MULTIDIMENSIONAL MEASURE

Typically expressed as a ratio, such as miles per gallon, kilometers per hour, grams per cubic meter this type of measure indicates a relationship between two or more units.

MULTIMODAL BILL OF LADING (B/L)

B/L issued from origin to destination for different ships and/or different transportation aircraft, railcars, ships, trucks carrying containerized door-to-door shipments. The principal carrier or the freight forwarder issuing the multimodal B/L has

MULTIPLE OPTION PLAN

An HMO, PPO, or a major health plan are employee choices under this specific type of plan.

MULTI-STEP FLOW THEORY

A theory stating that information moves in multiple directions as each consumer of this information passes it on along with their own interpretation of it. This information usually is from media outlets.

MUTUALITY OF CONTRACT

The requirement that all rules must apply to all parties to a contract for the contract to be enforceable. Otherwise, the contract must be rejected by all parties. No party is allowed

NARROW MOAT

A small competitive advantage one company may have over other competing firms operating in the same or similar industries. A narrow moat provides a very limited economic benefit lasting a short time,

NEGATIVE AMORTIZATION

Expected condition with an increasing principal amount increases following each monthly installment payment. Graduated payment mortgages (GPM) designed to match young executives or professionals with low starting income but high, rapid growth

NEGOTIATION OF A BILL

A bill of exchange transfers to an entity that becomes the new holder from its current holder.

NET CAPITAL

For semi-liquid assets as cash at their full value, this is an asset’s net worth less deductions .

NET INCOME

In an accounting period the total revenue minus all periodic expenses. When income taxes and interest are not deducted, it is known as operating profit or loss, if negative. Also known as

NET LINE

In a reinsurance surplus treaty on a particular risk, the original insurer’s retained insurance amount. Also refers to the an insurer’s maximum loss amount exposure unless reinsured.

NET PRICE

After deducting all discounts and rebates, one has a final price.

NET RETURN

Investment’s net income calculated as: Investment’s gross income minus expenses. Analysis type executed defines including or excluding income tax and/or capital gains tax.

NETIZEN

A dedicated internet user as a cyberspace citizen.

NEUTRAL CASH FLOW

Money coming in equals money going out. Any entity has a neutral cash flow if the periodic expenses equals the periodic income to the penny.

NEW YORK MERCANTILE EXCHANGE (NYMEX)

For the precious metals and energy markets, one of the most active options exchanges is this specific commodities futures’ exchange, the world’s largest. NYMEX has two divisions: NYMEX, for trading energy, platinum,

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