NAPF
National Association of Pension Funds. A UK trade association that represents pension funds. NASDAQ
National Association of Securities Dealers Automated Quotation . The second largest stock market in the United States, launched in 1971, the Nasdaq market was the nation's first electronic stock market, linking buyers and sellers via a computer network. NAV
Net Asset Value. NAV simply means the balance sheet value of a company's net assets, or shareholders funds. NAV can also refer to the NAV per share - the net assets (or shareholders' funds) divided by the number of shares in issue. NAV per share
Net Asset Value per share. The value of a company's assets less its liabilities (net assets), divided by the number of ordinary shares in issue. In theory, this represents the amount attributable to each share if the company was wound up. However, the function of the balance sheet is not to value assets (which are often stated at historic cost), so the net asset value likely to be lower than the market value. NBV
Net Book Value. The value of an asset of an asset less any depreciation that has been applied since its purchase. negative net worth
The value of an organisation that has liabilities in excess of its assets. net asset value
Net asset value or NAV simply means the balance sheet value of net assets, or shareholders' funds. NAV can also refer to the NAV per share - the shareholders' funds divided by the number of shares in issue. net assets
Net assets refer to assets less liabilities (the excess of the assets over the liabilities). net book value
The value of an asset less any depreciation that has been applied since its purchase. net current assets
Net current assets refer to the current assets less current liabilities of an organisation. net current liabilities
Net current liabilities refer to the current assets less current liabilities of an organisation. To have net current liabilities, the current liabilities must be larger than the current assets. This is usually because the company has very little inventories or does not give credit and therefore has no receivables. Alternatively it could indicate that the business is insolvent. net debt
Net debt is the total of all the loans and overdrafts that a company has outstanding at a point in time, less any cash or short term investments (on the assumption that these could be used to repay some of the debt). net debt/equity
Net debt/equity is a gearing/leverage ratio, used to measure of balance sheet risk. The higher the proportion of debt in the funding mix, the higher profits will be in good times and the lower they will be in bad times. Gearing is associated with risk because it increases the volatility of profits ? and because the lenders have first call on profits. The gearing ratio shows the amount of money borrowed in relation to the equity (or the shareholders' funds). Gearing can also be calculated as the ratio of debt to debt plus equity or the ratio of equity to total assets or debt to EBITDA. In the US, gearing is referred to as leverage. net income
Net income usually refers to profit after all operating expenses and after both interest and tax ? ie the profit attributable to the shareholders. net interest
Net interest is the interest paid by a company on loans etc less any interest received on cash and deposits. net interest margin
The net interest margin is the net interest income as a percentage of average interest-earning assets. It is a measure of profitability in the banking sector. The higher the ratio, the better ? although a high margin could suggest risky lending. net present value
The net present value is today's value of all the cash inflows less cash outflows of a project or investment. See also Present Value and DCF. net profit
Net profit usually refers to profit after all operating expenses and after both interest and tax ? ie the profit attributable to the shareholders. net realisable value
The net value of an asset if it were to be sold. net worth
The balance sheet value of an organisation when its liabilities have been deducted from its assets. However, it should be noted that the balance sheet net worth is not usually a fair reflection of the value of the company because the balance sheet tends not to value the assets at market value and does not usually place any value on intellectual capital or future profits. new business strain
New business strain is the term used to describe the worsening of a life insurer's financial position as a result of writing new business. This occurs because the initial outgoings (such as commission, expenses, reserves, etc.) hit when the policy is written, whilst the profits arise over the life of the contract. new issue
A share being offered on a stock exchange for the first time. nil paid
Usually refers to a share issue that has been made without payment. NMS
Normal Market Size. A classification system for trading in securities - a NMS is intended to represent a normal institutional bargain. The main function of the system is to fix the size of transactions in which marketmakers are obliged to deal. Marketmakers therefore quote prices for deals of a normal market size. NOMAD
Nominated Adviser. An adviser for AIM companies, approved by the London Stock Exchange. AIM companies must retain a nominated adviser at all times. nominal value
All shares have a nominal or par value. This value bears no relation to the market price of the shares, which is determined by supply and demand. The nominal value is usually the very first issue price of the shares. From then onwards, the nominal value is of little significance except that legally, shares cannot be issued at a price below nominal value. When shares are issued, the nominal value is recorded in the balance sheet as share capital and any amount paid over nominal value is recorded as share premium. nominated adviser
An adviser for AIM companies, approved by the London Stock Exchange. AIM companies must retain a nominated adviser at all times. Also known as a NOMAD. nomination committee
A committee of non-executive directors, charged with choosing new executive directors to be appointed to the board. nominee
A person named by another to act on his or her behalf. Often refers to shareholders who hold shares through accounts with a stockbroker and therefore appear on the share register in one of the broker's 'nominees' accounts along with other clients of the broker. non-current assets
Assets for continuing use in a business, rather than those for resale ? such as property, plant and equipment. Also known as fixed or capital assets. non-current liabilities
Liabilities which fall due after more than one year. non-executive
Non-executive usually refers to a director. Executive directors are in charge of running the company from day to day. Non-executive directors act in an advisory capacity and look after the interests of the shareholders. Non-Performing Loans
Non-Performing Loans (NPLs) are those which are in default or close to being in default. A loan is nonperforming when payments of interest and principal are not being made by the borrower (usually 90 days or more overdue). non-recourse
Non-recourse usually refers to a bank loan in which the lending bank is only entitled to repayment from the profits of the project that the loan is funding and not from any other resources of the borrower. non-voting share
Non-voting shares are issued by companies who wish to gain extra capital without giving any control or a fixed dividend to the investor. In the UK, they were often issued by family companies, to avoid dilution of family control. However, the trend here has been to enfranchise all shareholders, so these shares are now very rare. Non-voting shares can still be found in continental European companies. They are sometimes known as 'A' shares. normal market size
A classification system for trading in securities. The main function of the system is to fix the size of transactions in which marketmakers are obliged to deal. Marketmakers therefore quote prices for deals of a normal market size. Also known as NMS. normalised
Generally refers to the profit after stripping out one-off items such as acquisition integration costs, profits on disposal of businesses or non-current assets. These adjustments are made to establish a normal level of profits. NPLs
Non-Performing Loans. NPLs are those which are in default or close to being in default. A loan is nonperforming when payments of interest and principal are not being made by the borrower (usually 90 days or more overdue). NPV
Net Present Value. The economic value of an investment can be calculated by forecasting all the cash inflows and outflows associated with the project and discounting them back to present day value. The net present value is the present value of the cash inflows less the outflows. NRV
Net Realisable Value. The net value of an asset if it were to be sold in the relevant market. NYSE
New York Stock Exchange (part of NYSE Euronext). | 
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