Naked
An investment strategy in which the seller doesn't own the underlying security.
BACK TO TOP

Nasdaq
An electronic stock market run by the National Association of Securities Dealers. Brokers get price quotes through a computer network and trade via telephone or computer network. The index that covers all the stocks that trade on this market is called the Nasdaq Composite Index. Since there is no centralized exchange, Nasdaq is sometimes referred to as an over-the-counter market, or a negotiated marketplace. Many of the stocks traded through Nasdaq are in the technology sector.
BACK TO TOP

Nasdaq Composite Index
An index that covers the price movements of all stocks traded on the Nasdaq Stock Market.
BACK TO TOP

Nasdaq National Market
A subdivision of the Nasdaq Stock Market that contains the largest and most actively traded stocks on Nasdaq. Companies must meet more stringent standards to be included in this section than they do to be included in the other major subdivision, the Nasdaq Small-Cap Market.
BACK TO TOP

National Association of Securities Dealers (NASD)
A self­-regulating securities industry organization responsible for the operation and regulation of the Nasdaq stock market and other over-the-­counter markets. NASD members include almost all investment banking houses and firms dealing in the over-the-counter market. The organization sets guidelines for ethics and standardized industry practices, and has a disciplinary structure for looking into allegations of rules violations.
BACK TO TOP

Net assets
The total assets (net of liabilities) held in a fund. Pay close attention to this statistic when investing in small-cap or aggressive equity funds. Because of the illiquidity and volatility of the companies they buy, such funds need to be able to move quickly in and out of positions. Having too much assets — more than $1 billion — can be a real detriment to their performance. See "Aggressive Equity Fund for a Gen-Xer."
BACK TO TOP

Net asset value (NAV)
Net asset value, also known as price per share. The value of a fund's assets divided by the number of its outstanding shares. The NAV is calculated daily at the close of the markets. Open-end funds always trade at NAV, but closed-end funds often trade at a premium or discount to their asset values. See "Closed Or Open End?"
BACK TO TOP

Net income
Also known as the bottom line, this is the profit a company realizes after all costs, expenses and taxes have been paid. It is calculated by subtracting business, depreciation, interest and tax costs from revenues. Investors often pay too much attention to net income, the calculation of which can be easily manipulated by accountants. A better measure of corporate growth, some analysts say, is cash flow. Net income is also called earnings or net profit.
BACK TO TOP

Net margin
A company's profitability after all costs, expenses and taxes have been paid. The net margin is calculated by dividing net earnings by revenue and then multiplying by 100. The result is expressed as a percentage. Net margin is used to measure operating efficiency at a company. It is the one profit margin investors watch most closely because it takes into account all expenses of running the company. But operating margins may paint a truer picture of a company's profitability. See "Margins."
BACK TO TOP

Net worth
The amount by which total assets exceed total liabilities. Also known as shareholder's equity or book value, net worth is what would be left over for shareholders if the company were sold and its debt retired. It takes into account all money invested in the company since its founding, as well as retained earnings. Examining the price-to-book ratio (P/B) of an industrial company with a lot of hard assets is a good way of telling if it's undervalued or overvalued. See "Price/book value."
BACK TO TOP

New factory orders
An economic indicator compiled by the Commerce Department that reports on manufacturers' orders on a monthly basis.
BACK TO TOP

New home sales
Monthly report by the Commerce Department of the sales of new, single-family homes. An economic indicator, the new home sales report measures consumer confidence. A large increase indicates the economy may be overheating.
BACK TO TOP

New York Stock Exchange (NYSE)
The oldest and largest stock exchange in the U.S., the New York Stock Exchange is located on Wall Street in New York City. The total market value of the roughly 2,300 companies whose shares are listed on the NYSE is about $5 trillion. It was founded in 1792. Also called the Big Board.
BACK TO TOP

Nikkei
A price-weighted index of 225 large capitalization stocks on the Tokyo Stock Exchange. This is the Japanese equivalent of the Dow Jones Industrial Average. In fact, it was called the Nikkei Dow Jones Stock Average until 1985. Like the Dow, it is composed of representative blue chips and moves on price, not market capitalization.
BACK TO TOP

No-fault law
Law in a number of states that provide for injuries incurred in an auto accident to be covered by your own insurance policy, regardless of who was at fault. Intended to reduce the cost of auto insurance, the law also limits the right to sue after an accident.
BACK TO TOP

No-load mutual fund
A mutual fund that sells its shares without a sales charge or commission. Investors buy shares of no-load funds directly from the fund companies rather than a broker. Buying a no-load fund is a good way to cut costs. The listing of the price of a no-load fund in the newspaper is accompanied with the designation NL. See "Cost control."
BACK TO TOP

Note
A bond with a maturity greater than one year and less than 10 years. See "Types of Bonds."
BACK TO TOP

NYSE Composite Index
An index that covers the price movements of all stocks listed on the New York Stock Exchange (NYSE). It is a market-capitalization weighted index.
BACK TO TOP

NZSE Gross Index
Index of industrial sector stocks listed on the New Zealand Stock Exchange.
BACK TO TOP