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

NEGOTIATED MARKET

Buyers and sellers negotiate the price posted as bid and ask prices in this type of market. NASDAQ is an example. In contrast, the New York Stock Exchange and American Stock Exchange

NEIGHBOR RULE

Legal principle that damage or injury to closely associated or nearby people or property may reasonably be foreseen by a person and avoided as acts of commission or omission.

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 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 ADVANTAGE OF REFUNDING

Future earnings’ value in current money a business or individual saves with a refund from a bond redemption prior to its maturity and a lower-cost bond reissuing.

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 PER SHARE

a mutual fund’s single share or unit value. Calculated as: (the fund’s total assets minus the fund’s total liabilities) divided by the number of outstanding shares. Also known as Average Price.

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 CAPITAL

For semi-liquid assets as cash at their full value, this is an asset’s net worth less deductions .

NET CONTRIBUTION

After subtracting all necessary deductions, this is the amount that remains.

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 ADVANTAGE TO MERGING

An indication that a business might be worth more and would potentially be more profitable after a merger. This advantage is found by subtracting the business’s market value before the merger, subtracting

NET DEBT PER CAPITA

Debt amount per citizen a government carries as a measure. Calculate as: (short-term debt plus long term debt minus cash minus other liquid assets) divided by the population. Government’s total debt levels

NET IMPORTER

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

NET FOREIGN FACTOR INCOME

A business’ or a nation’s income calculated as payments from the foreign sector to citizens minus payments to foreigners employed to provide domestic goods or services. The gross national product minus the

NET ERRORS AND OMISSIONS

Payments accounting balance showing statistical discrepancies. Data collection inaccuracies, such as adding an extra zero in a column that tallies payments due against payments collected.

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