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Trading Terms Starting With N

  • NASDAQ / Nasdaq

    the National Association of Securities Dealers Automated Quotations, an electronic exchange for over-the-counter stocks.
  • NFA

    the National Futures Association, the industry-wide, self-regulatory organization for the U.S. futures industry. Futures trading is not currently available at TradeKing.
  • Naked / naked option

    a short option position that is not offset by an opposing position in the underlying stock or by a long position in an option of the same type (call or put) on the same underlying stock. See Covered option.
  • National debt

    see Federal debt.
  • Near month

    a month that is nearer in time relative to another month. Also termed Front month.
  • Negative yield curve

    see inverted yield curve.
  • Negotiable

    1. a price that may not be firmly established.
    2. a security whose ownership is transferable by delivery from one party to another.
  • Net asset value (NAV)

    the value of a mutual fund share calculated as the fund's total assets minus liabilities, divided by the number of shares outstanding.
  • Net present value (NPV)

    the current value of an investment's future cash flows minus the initial investment.
  • Net profit / net earnings

    a company's net income after taxes, interest, depreciation and other expenses are deducted. Also termed Bottom line.
  • New issue

    a security being offered for sale in the open market for the first time. See Initial public offering.
  • Nikkei 225

    a price-weighted index that represents 225 top-rated stocks traded on the Tokyo Stock Exchange.
  • No bid (options)

    a situation in which there is currently no bid price (e.g., no buyers) for a specific option contract. This generally occurs when the option is out-of-the-money and there is little time left until expiration. There is usually an ask price in this situation without a bid price.
  • No load / no load fund

    a mutual fund that does not charge a load, or a fee, for its purchase (front-end) or sale (back-end). Opposite of Load fund..
  • Nominal interest rate / nominal rate

    the interest rate as stated as the coupon on a bond, unadjusted for the rate of inflation.
  • Nominal quote

    a quotation (bid and/or ask price) given by a broker-dealer that is not a firm quote. The quote comes with no obligation to buy or sell at that price. Also termed Subject quote.
  • Nominal value

    the value of an asset which does not fluctuate. Also termed Face value or Book value.
  • Non-accredited investor

    a person who does not meet the SEC requirements for an accredited investor. See Accredited investor.
  • Non-callable security

    convertible preferred stock or convertible bond with no attached call provision. The issuer has no right to call, or redeem, the security before maturity.
  • Non-qualified retirement plan

    a retirement plan that does not meet IRS requirements for tax deferral.
  • Normal distribution

    a probability distribution of a large set of randomly occurring values that graphically takes the shape of a bell. The majority of values are clustered around the mean (tallest part of the bell) with progressively smaller and greater values occurring less frequently away from the mean (as the bell tapers off smoothly on either side). With respect to options these values are generally daily changes in the closing underlying stock price or index value. This distribution gives equal chance to stock price outcomes that may occur above and below the mean stock price. Because a stock's price or index's value can only decrease to zero and theoretically increase to infinity, there are more possible outcomes which may occur that are higher than the mean price. Normal distributions do not account for this difference. Normal distributions assume a stock's price or index value can move equally from the mean in either direction. See also Log normal distribution.
  • Normal yield curve

    a situation in which long-term interest rates are higher than short-term interest rates. Opposite of Inverted yield curve.
  • Notional value

    the value of an option or futures contract's underlying asset at the current market price. For an equity option this would be the current share price multiplied by 100 shares; for an index option it would be the underlying index value multiplied by $100. Futures trading is not currently available at TradeKing.