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

Category: N

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,

NEWSPRINT

because of its short life span, wood pulp paper is used for newspapers but not for books or records. Pulp is absorbent, coarse, off-white or light brown, and soft.

NITRATE (NO3)

Inorganic or organic ester or nitric acid salt containing the (NO3) ion. Nitrates play a major part in nitrogen cycle and nitrate pollution. They are the most water soluble of all salts.

NO FAULT INSURANCE

Whether or not one is at fault in an accident, the insured is covered for the stated risk by this type of auto insurance policy.

NO-GROWTH

Restricting or discouraging a community’s commercial development as a practice.

NARROWBAND

This is a bandwidth less than 1.544 megabits per second (Mbps). Very general term for a transmission rate less than a T1 circuit. Also refer to broadband.

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