The Law Dictionary

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

Category: N

NECESSARY PARTY

Entity deemed essential to be included in a litigation before a court qualifies it because of close association with a matter. However, if excluded, the case will not be dismissed nor will

NEGATIVE DIVERGENCE

Overall trends being perceived to be taking place in a particular market are the point of disagreement by at least two averages or indexes.

NEGLIGENCE RULE

Legal principle preventing an entity from putting forth a defense based on a mistake caused by that entity’s negligence. For example, if a negligent entity causes a negotiable instrument’s misuse, as in

NEGOTIATION CREDIT

The issuer specifically states that this documentary credit is available by negotiation. The issuer’s owes this money as an obligation continued to its drawers, endorsers, and bona fide holder for value for

NET ASSET VALUE (NAV)

At the financial market’s close the mutual fund’s share or unit’s daily computed value. Also known as bid price, NAV per share, or NAV per unit. Calculated as: (each security’s market value

NET EXPORTER

A location that is often a specific country or territory whose exported goods value exceeds goods imported value during a specific time range. When the exported goods’ total value exceeds imports’ total

NET INVESTMENT

1. In Accounting, in a given period, this is the amount invested as a capital expenditure minus allowance for capital depreciation. 2. In Economics, this the change in total capital stock in

NET PAYOFF

Calculated as: recognized security revenue minus operating expenses.

NET RECEIVABLES

Company’s recorded amount as money to be repaid minus outstanding debt costs.

NET WORTH

Firm’s value to its owners, typically stockholders or shareholders. Value is usually shown on the firm’s balance sheet. Issued share capital plus retained earnings plus capital gains equals net worth. Also known

NETWORK SERVICE PROVIDER (NSP)

Entity as a high volume data capacity renter to limited internet service providers (ISP) who rent capacity to several internet users, known as subscribers.

NEW MEDIA

The Internet is an example of this electronic interactive media.

NEWLY INDUSTRIALIZING ECONOMY (MIE)

Brazil, China, India, Korea, Mexico are developing but relatively advanced countries with rapidly growing industrial production scale and scope. Also known as newly industrializing country.

NIFTY FIFTY

During the 1960s and 1970s, this specific largecap stocks group including General Electric, IBM and American Express was once highly favored by institutional investors.

NO CONTEST CLAUSE

To prevent a contracting party or beneficiary from challenging a contract’s terms this specific provision becomes a contract or testament add-in.

NO STRIKE CLAUSE

Provided the employer or management keeps its side of the bargain, a union pledges to not initiate any strike action during the life of the agreement as stated in this type of

NON-PURPOSE LOAN

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

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