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

Category: Finance Dictionary

NET QUICK ASSETS

After operating expenses are deducted, conversion to cash easily occurs with these valued instruments.

NET TANGIBLE ASSETS

Calculated as: all intangible assets’ fair market value totaled minus (Goodwill plus Total liabilities).

NETWORK ANALYSIS

Decomposing a complex project’s data into detailed components and showing their interdependencies and interrelationships by plotting. These components are activities, events, durations, and the like.

NEW ECONOMICS

This specific term is for the recent economic transition to a dependency on technology, its advancement, and information exchange. Information technology (IT) increasingly connects this the new business environment. Industry-accepted to have

NEWCO

Any new company, especially one issuing an initial public offer (IPO), for example.

NEXUS

A point of causal intersection, link, relation, connection.

NITROGEN (N)

Inert gas. 78 percent of the Earth’s atmosphere by volume and about 77 percent by weight is nitrogen. Colorless, odorless, tasteless, and non-toxic, it maintains at these levels by the nitrogen cycle.

NO RECOURSE

Inability to obtain a judgment against, or reimbursement from, a defaulting or opposing party. This notation indicates a lack of means or legal right.

NOMINAL ACCOUNT

Period-ending at near-zero balanced revenue or expense account as an owners’ equity account subdivision. A zero balance at the beginning of a new accounting period, accumulates balances during the period, and at

NON-PURPOSE LOAN

A loan whose collateral is securites. The margin rule is not used to acquire more securities.

OVERSOLD

A market with excessive selling for a short period of time.

PASS-THROUGH SECURITY

When investors get cashflows from assets in modified or fully modified forms. The assets can be mortgages, certificates, bonds, and loans.

PORTFOLIO RISK

Risk caused by adverse movements in the market. It is preventable by diversifying. Refer to correlation and correlation risk.

PREFERRED STOCK

A security that pays investors periodic dividends but does not allow them board vote. There are many forms of this stock.

PRIVATE EQUITY

An investment that comes from a private not corporate investor. The investor usually exits at the first public sale.

PURE CAPTIVE

An insurer owned by a single company. They write insurance for that company only. While easy to manage it may be more risky. AKA single parent captive. Refer to agency captive, captive,

QUICK ASSETS

The amount of a firms most liquid assets. They include stock, cash, accounts recievable, and securities. It is a measure of the current assets minus inventory. Refer to quick ratio.

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