Letter N Vocabulary Flashcards
Selling an option without owning the underlying asset or a corresponding offsetting position.
Naked Option
Selling a security short without actually borrowing it or ensuring that it can be borrowed.
Naked Short
An electronic stock exchange known for its technology-based listings.
NASDAQ
A system for trading and displaying stocks and securities across various exchanges in the U.S.
National Market System (NMS)
Capable of being transferred or sold from one party to another.
Negotiable
The total value of an investment fund’s assets minus its liabilities, divided by the number of shares outstanding.
Net Asset Value (NAV)
The difference between the closing price of a security on the current trading day and the previous trading day.
Net Change
The total earnings of a company after subtracting all expenses, including taxes and costs.
Net Income
The total value of assets minus liabilities for an individual or company.
Net Worth
A security that has just been released or offered for sale to the public.
New Issue
The largest stock exchange in the world by market capitalization, located in New York City.
New York Stock Exchange (NYSE)
A mutual fund that doesn’t charge any sales commission.
No-Load Fund
The face value of a financial instrument, not adjusting for inflation or other external factors.
Nominal Value
The annual income from an investment expressed as a percentage of its face or nominal value.
Nominal Yield
Pertaining to dividends or other distributions that, if not paid when due, do not accumulate for future payment.
Non-Cumulative
A type of preferred stock dividend that doesn’t accumulate if it’s unpaid.
Non-Cumulative Dividend
A forward contract in which there is no physical delivery of currency, usually settled in cash.
Non-Deliverable Forward (NDF)
A type of retirement plan that doesn’t meet IRS requirements for favorable tax treatment.
Non-Qualified Plan
Risk that affects a single company or a small group of companies, as opposed to the entire market or sector.
Non-Systematic Risk
Shares that do not provide the holder with the right to vote on company decisions or board elections.
Non-Voting Stock
Stock that does not have a specified face value in its charter.
No-Par Value Stock
A statistical distribution where data is symmetrically distributed about the mean, resembling a bell-shaped curve.
Normal Distribution
A short-term debt instrument issued by corporations or governments.
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