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

Category: Finance Dictionary

NEGATIVE REINFORCEMENT

Increasing or maintaining an improper response or behavior’s likely reoccurrence based on removing a challenge, penalty, stimulus, or reward.

NEPOTISM

Appointing unqualified relatives and friends to positions in one’s organization when an outsiders might be better qualified. Typically connected with political office. Where complete trust and willingness to work hard for little

NET CHANGE

Security’s price change between closing price as last trading price on a trading day and closing price on the next trading day. Net change is the difference between the closing bids from

NET INCOME MARGIN

Revenue percentage that is Net income. Calculated as: Net income times 100 divided by total revenue. Also known as net margin or net profit margin.

NET PURCHASES

Allowances, discounts, and returns subtracted from total items purchased amount.

NET SURPLUS

after certain operating expenses are subtracted from recognized revenue, this amount results. Tax and dividend payments are part of the operating expenses.

NETWORK

1. In Computers, this is an interconnected computers and peripherals grouping that shares software and hardware resources between many users. Connections occur by cable and/or wireless. The Internet is a global network

NEW DEAL

Economic policies that President Franklin D. Roosevelt introduced as a series of programs after the Great Depression left the U.S. economy utterly wasted. His programs provided help to millions of Americans stuck

NEXT OF KIN

A wife, by affinity, or by blood, like a parent, sibling, or offspring is a deceased’s nearest relative.

NITRITE (NO2-)

Nitrous acid ester or salt containing the nitrite (NO2) ion. Certain bacteria in the soil convert nitrites into nitrates as plant nutrients. They are used mainly as meat coloring agents and food

NOMENCLATURE

Official names, terms, or specialized vocabulary as a set or system, used in a specific area, discipline, or subject, like accounting, engineering, finance, or law. As an online dictionary, for example, this

PASSIVE RETENTION

When a company unexpectedly retains risk leading to losses. This usually occurs when they are not properly managing their reserves or self insurance. Refer to retention and risk retention

PHANTOM STOCK

Provides bonuses and cash to management if the company does well.

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