Nonsystematic Risk

Nonsystematic Risk Also see: unique risk, diversifiable risk. Risk unique to a specific asset or firm. Such non-market risks can be limited through diversification. Such risk factors affect all such companies within the economy of a country. … [Read more...]

Normal Annuity Form

Normal Annuity Form Schedule or manner whereby post retirement benefits are paid to beneficiary. … [Read more...]

Normal Backwardation Theory

Normal Backwardation Theory Theory stating that price of futures will be pushed to levels lower than spot price expectation by demand- supply forces. … [Read more...]

Normal Deviate

Normal Deviate Also see: standardized value. Gap between data and its average divided by standard deviation. … [Read more...]

Normal Market Size

Normal Market Size Number of shares that can be traded at a quoted price. Influences the impact of market maker’s trading activities on the price of the stock. … [Read more...]

Normal Probability Distribution

Normal Probability Distribution All possible values that can be taken by continuous random variable that is represented as a bell curve around the mean values. Has no skewness. … [Read more...]

Normal Portfolio

Normal Portfolio Investment portfolio typically created by a money manager. Used to gauge how deviations in his strategy affect portfolio performance against a portfolio that he would have chosen had he followed his original strategy. … [Read more...]

Normal Random Variable

Normal Random Variable Variable with a normal probability distribution. Used in quantitative analysis methods. … [Read more...]

Normalizing Method

Normalizing Method Accounting method used to show along with the income, a charge equal to tax savings arising from various depreciation methods used for benefit of shareholders and to reduce tax payable. This practice allows the company to offset in the final net income presented … [Read more...]

Note

Note Fixed income instruments or debt with between one to ten years maturity at issue. … [Read more...]

Note Against Bond Spread

Note Against Bond Spread Also called Note over Bond spread. Denotes a spread established by taking opposite positions in a bond and note investment of different maturities. … [Read more...]

Note Agreement

Note Agreement A formal agreement outlining terms of a debt that is privately placed. … [Read more...]

Note Issuance Facility (NIF)

Note Issuance Facility (NIF) A formal agreement wherein a syndicate of banks shows an interest or willingness to accept from borrowers, short term notes. These notes are sold in Eurocurrency market by the banks subsequently. … [Read more...]

Notes to the Financial Statements

Notes to the Financial Statements Additional notes contained in annual report of a company immediately following the financial statements. Explain in detail the information contained in the statements. … [Read more...]

Notice Day

Notice Day Also refer: delivery notice. Day when intent to deliver relevant to a given delivery month is intimated in the form of a notice. … [Read more...]

Notice to Creditors

Notice to Creditors Notice issued to debtors and creditors of estate through media like a newspaper. Intimation to these parties to present claims in a court of law or pay dues. … [Read more...]

Notional Principal Amount

Notional Principal Amount Predetermined dollar value of the principal in an interest rate swap. The interest rates are based on this principal amount. … [Read more...]

Novation

Novation Earmarking of funds by borrower to fulfill debts of the firm. The debt is canceled and removed from the books. … [Read more...]

Notification Date

Notification Date The date of expiry or exercise of an option. … [Read more...]

NPV

NPV See: Net present value. For profit making businesses, NPV should be greater than zero. … [Read more...]