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

Category: Finance Dictionary

NET FIXED ASSETS

For a point in time on a balance sheet, this is the fixed assets’ value. Calculate as: (all fixed assets’ purchase price plus leasehold improvements) minus (Accumulated depreciation plus Total liabilities).

NET LEASE

Lease arrangement by a tenant, the lessee, to pay rent plus associated general expenses. A capital lease is a net lease but an operating lease is not. The lessee may pay for

NET PREMIUM

In general, any premium with a commission, or expenses, or dividends, or loss coverage subtracted. It is a general term that can have many different meanings. In particular, it is the premium

NETBACK

Total revenue from all products made from crude oil minus total cost bringing crude oil to market. Only applies to oil suppliers.

NEW PRODUCT DEVELOPMENT

Development process for a new product or service. This development type is set as the preliminary step in product or service development. It involves steps in a protocol that must be completed

NEWSGROUP

Online discussion group for interaction via an electronic bulletin board system and chat sessions. Every conceivable subject is covered by thousands of internet based newsgroups. (refer to Usenet) (refer to internal relay

NIKKEI STOCK AVERAGE

Founded in 1949, 225 largest Japanese corporations listed on Tokyo stock exchange as a price weighted index. It holds the ‘First section’ firms’ shares, the Japanese equivalent to NYSE Blue Chips. Movement

NO DUTY RULE

Legal rule: a defendant who owes the plaintiff no duty is not liable for any plaintiff injury or damage.

NOBLE METAL

Inert or near-inert metal showing little or no chemical activity with atmosphere and mild acids. Gold, silver, and platinum are such metals. They do not rust or corrode, displaying an indefinite life

NOTIONAL

The way amounts payable and received are computed.

PAR YIELD CURVE

A fixed incomes yield curve depicting interest rates and maturity dates for a marketplace.

PENNANT

The flag in a chart signifing a peak point. At this peak prices drop or raise quickly.

POINT AND FIGURE CHART

A chart showing movement of investments without considering time. Xs and Os show up and down movement and if the trend shifts a new column is added. The chart is made to

POSITIVE WORKING CAPITAL

When a companies assets exceed its liabilities. There is plenty of liquidity to cover obligatins. Refer to negative working capital.

PREPAYMENT MODEL

The way banks calculate the speed a mortgage will be repaid. A common way is the constant repayment rate model.

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