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

Category: N

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.

NAIVE FORECASTING

Without adjusting or establishing causal factors, using the last period’s actuals to estimate this period’s forecast by this unremarkable technique. Used only to compare against forecasts generated by better, more sophisticated techniques.

NASDAQ STOCK MARKET

Major US over-the-counter (OTC) electronic stockmarket owned by National Association of Securities Dealers (NASD). This market now includes American Stock Exchange (AMEX) and Philadelphia Stock Exchange (PHLX), and operates London-based NASDAQ International

NAUTICAL MILE

Distance measuring exactly 1852 meters or 6076.11 feet. One nautical mile equals 1.15 miles or 1.85 kilometers. By a 1920 international agreement, it replaced the British Nautical mile (6080 feet) and US

NEGATIVE CONVEXITY

Callable bonds’ principal is returned (1) before maturation in a declining interest rate environment or (2) after maturation in a rising interest rate environment. The first situation may require reinvesting the principal

NET 10/30

Invoice payment terms. 10 days within the invoice date, the net amount is due on a net 10. Net 30 is within 30 days, and so on.

NET COST

Calculated as: In a specific time period, total premiums paid minus the total cash value minus any policy dividends generated. Insurers make comparisons of net cost every ten or 20 years if

NET RATE

Premium amount minus appointed dividends. This term also refers to the non-participating policy rate found in a rate book.

NET TANGIBLE ASSETS PER SHARE

Recognized revenue amount in a company’s preferred stock holdings. The revenue amount is based on how much calculated profit over a company share count holdings.

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