National debt refers to the total amount of money that the federal government owes to creditors due to borrowing. It consists of various debt instruments such as Treasury bills, Treasury notes, and Treasury bonds. The interest on the national debt is a significant part of the federal government's annual expenses.
The National Flood Insurance Program (NFIP) aims to reduce the impact of flooding on private and public structures by providing affordable insurance to property owners. Furthermore, it encourages communities to adopt and enforce floodplain management regulations.
National Income is a comprehensive measure of the overall economic activity within a country, reflecting the total income earned by the residents of a nation during a specific period, usually a year.
National Insurance Contributions (NIC) are payments made by employees and employers in the UK primarily to qualify for certain benefits and state pensions.
National Insurance Contributions (NICs) are payments made by those with earned income that contribute to the National Insurance Fund, from which various benefits are disbursed including retirement pensions, jobseeker’s allowance, and more.
A pivotal federal statute aimed at promoting and protecting employees' rights to organize and collectively bargain while prohibiting certain unfair labor practices by employers.
The National Labor Relations Association (NLRA) is a foundational piece of federal legislation in the United States that governs the labor practices of private sector employers and their relations with labor unions. Enacted in 1935, the NLRA established the National Labor Relations Board (NLRB) and granted employees the right to organize, engage in collective bargaining, and take collective action, including strikes.
The National Labor Relations Board (NLRB) is an independent federal agency tasked with enforcing US labor law in relation to collective bargaining and unfair labor practices.
The National Mediation Board (NMB) is a three-member board established by the Railway Labor Act in 1926 to handle mediation of labor-management disputes in the railway and air transport industries.
The National Quotation Bureau (NQB) was the former name of the entity now known as Pink Sheets, LLC, which provides pricing and financial information for over-the-counter (OTC) securities.
National Savings refers to a variety of savings and investment schemes specifically for personal savers, which are managed by National Savings and Investments (NSI), a governmental body initially established as the Post Office Savings Department in 1969.
The National Society of Accountants (NSA) is a professional association in the USA for accountants and tax practitioners, offering resources, networking opportunities, and professional development since 1945.
A National Union is a complex organizational structure consisting of workers from various sectors within a country's economy, aimed at negotiating labor conditions and advocating for the rights of its members.
An economic measure that represents the sum total of the value of all capital and goods held within a nation. It encompasses the net value of all assets owned by residents and businesses of a country at a particular time.
The process through which the government takes ownership of a private business or industry.
A fiscal year that aligns with the natural cycle of a given business rather than the calendar year, often ending when inventories and activities are at their lowest level.
A natural monopoly occurs in an industry where the most efficient producer is a single entity, typically due to high fixed costs and significant economies of scale. Most natural monopolies are utilities or similar entities.
The rate of growth in national income that maintains the current level of employment and wages. This rate equals the growth rate of the labor force added to the rate of productivity.
A concept in economics representing the rate of unemployment at which the labor market is in equilibrium, and there is no inflationary pressure.
Natural resources are actual and potential forms of wealth supplied by nature, including coal, oil, wood, water power, and arable land. These resources are vital for various industries and economic activities.
Navigation involves finding one's way through a complex system of menus, files, or the World Wide Web. It encompasses methods and processes that allow users to find information or achieve tasks efficiently.
Near money, also known as quasi money, refers to assets that are not as liquid as cash but can be quickly converted into cash and used to settle debts. Examples include bills of exchange, savings accounts, and treasury bills.
Need satisfaction refers to the fulfillment of a motivational desire, which results in the cessation of the motivation to satisfy that specific need.
Negative amortization is an increase in the outstanding balance of a loan resulting from the failure of periodic debt service payments to cover the required interest charged on the loan.
Negative carry is a financial situation where the cost of financing an investment exceeds the yield generated by that investment.
Negative cash flow is a crucial financial metric that indicates an excess of cash outflows over cash inflows for a company during a specific period.
A negative consolidation difference is a term used in acquisition accounting to represent a credit balance, often reflecting negative goodwill.
Negative correlation is an inverse association between two variables, where one variable increases while the other decreases. It is represented by correlation coefficients less than 0.
Negative equity occurs when the value of an asset falls below the outstanding balance borrowed against it, often seen in property valuations affected by economic downturns.
Negative goodwill occurs when the purchase price of an acquired company is less than the fair value of its net identifiable assets and liabilities, leading to gains in financial statements.
A system designed to provide financial assistance to low-income individuals by using the income tax system, ensuring an income level above a predefined minimum through direct subsidies.
Negative Income Tax (NIT) is a proposed system of welfare within which low-income earners receive supplemental pay from the government instead of paying taxes. The idea aims to provide a safety net for the least fortunate by ensuring a minimum level of income.
Negative leverage, also referred to as reverse leverage, occurs when the cost of borrowing exceeds the returns generated from investments. This situation creates a net loss for the investor, contrasting with positive leverage where borrowed funds generate higher returns.
Negative Net Worth, also referred to as Deficit Net Worth, occurs when an individual's or a company's liabilities exceed their assets. This financial condition indicates that the value of obligations outweighs the owned resources.
A covenant in a loan agreement wherein the borrower commits to refrain from securing new borrowings during the loan's term or ensures equal and rateable security for any new borrowings, as specifically defined.
Negative working capital occurs when a company's current liabilities exceed its current assets, raising concerns about its ability to meet short-term obligations and threatening its operational viability.
A negative yield curve, also referred to as an inverted yield curve, occurs when long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality, often indicating an imminent economic recession.
In law, a tort in which a breach of a duty of care results in damage to the person to whom the duty is owed.
An asset of little or no value, often used for capital gains tax purposes. Such assets can be treated as sold and immediately reacquired at a negligible value, resulting in an allowable capital loss.
The ability of a document to change hands, entitling its owner to some benefit, such that legal ownership of the benefit passes by delivery or endorsement of the document.
The term 'negotiable' has multiple meanings in the contexts of finance, business, and law. It can refer to assets or instruments that can be transferred or sold, as well as mutual agreements or conditions that parties can discuss to reach a satisfactory resolution.
A Negotiable Certificate of Deposit (NCD) is a time deposit with a bank that can be sold in the secondary market. These large-denomination CDs are typically issued in amounts over $100,000 and pay interest either to the bearer or to the order of the depositor.
A negotiable instrument is a document of title that can be freely transferred from one party to another, allowing for the facilitation of trade and commerce.
A negotiable note is a record of an unsecured loan, with the term 'note' preferred over 'bond' for principal sums repayable in less than five years.
A Negotiable Order of Withdrawal (NOW) is a type of bank or savings and loan withdrawal ticket that functions as a negotiable instrument, allowing for withdrawals from interest-bearing checking accounts.
A Negotiable Order of Withdrawal (NOW) account is a type of deposit account that allows the owner to write drafts against the deposited funds, permitting the account holder to earn interest while maintaining the ability to withdraw funds on demand.
The negotiated market price is a price that is set by negotiation between producers and the government, usually due to wartime restrictions, unexpected shortages, or natural monopoly situations.
Transfer prices set by negotiation between the supplying and receiving divisions of an organization, typically deemed appropriate when there is an imperfect market for the goods and services exchanged.
Negotiation is the process of bargaining that precedes an agreement between parties. It often results in a contract and can involve various stages and techniques to reach a mutually beneficial outcome.
A neighborhood is a district or locality characterized by similar or compatible land uses. Neighborhoods are often identified by a place name and have boundaries composed of major streets, barriers, or abrupt changes in land use.
A neighborhood store is a retail establishment designed to seamlessly integrate with the surrounding neighborhood, catering specifically to local tastes and needs.
A pioneer in providing education financing solutions for undergraduate and graduate students and their families, emerging as a part of New England's educational loan landscape in 1982 and subsequently acquired by SLM Corporation in 1999.
Neoclassical economics is a school of economic theory that flourished from about 1890 until the advent of Keynesian economics and asserts that market forces lead to efficient allocation of resources and full employment.
Nepotism refers to the practice of favoritism towards one's family, typically manifested in employment and economic transactions. This behavior often results in family members receiving preferential treatment in hiring and business operations.
A slang term used to describe a person intensely interested in computers or other scientific/engineering subjects, often to the exclusion of other human activities. The term implies a certain degree of social awkwardness but can also be used as a compliment within certain groups.
A nest egg refers to assets saved or set aside for a significant purchase or a person's retirement. These assets are generally invested in conservative financial instruments to safeguard their value and ensure steady growth over time.
Net denotes an amount remaining after specific deductions have been made. Net profit before taxation, for instance, is the profit made by an organization after the deduction of all business expenditure but before the deduction of the taxation charge.
Net asset value (NAV) represents a company's or mutual fund's per-share value, calculated by dividing the total value of assets minus total liabilities by the number of shares outstanding. It's an essential metric for investors to gauge the value of an individual share relative to its underlying assets.
Net Asset Value (NAV) is a measure used to value a mutual fund or an exchange-traded fund (ETF) and represents the market value of these investment assets minus their liabilities, typically expressed on a per-share basis.
The net asset value (NAV) represents the per-share value of a fund's assets minus its liabilities, used to measure the performance of mutual funds, ETFs, and similar investment vehicles.
Net Assets represent the total assets of an organization minus its liabilities and are crucial for evaluating the financial position and stability of a company.
The net basis is the method used to calculate a company's earnings per share (EPS), incorporating both constant and variable elements in the company's tax charge. Under International Accounting Standard 33, listed companies must display EPS on the net basis in their profit and loss statements.
Net Book Value (NBV) represents the carrying value of an asset on a company's balance sheet, calculated by subtracting accumulated depreciation or amortization from its original cost. It reflects the current value of a company's assets for accounting and investment decision purposes.
Net Book Value (NBV) represents the value at which an asset appears in the books of an organization, accounting for depreciation since purchase or revaluation.
Net cash flow refers to the difference between the cash that enters (cash inflows) and exits (cash outflows) an organization during a specific financial period. It can either be positive, signifying a cash surplus, or negative, indicating a cash deficit.
Net Change refers to the difference between the closing price of a stock, bond, commodity, or mutual fund from one trading day to the next. It is a crucial metric for investors to gauge the daily performance of an asset.
Net Contribution refers to the excess of the selling price over variable costs per unit, signifying the residual positive effect from an action taken. It's a critical metric in assessing the profitability and efficiency of various business operations and decisions.
The net cost refers to the gross costs of purchasing an asset minus any income received. It provides a monetary value that represents the true cost to the buyer after accounting for rebates, subsidies, or incomes.
Net current assets, also known as working capital, refer to the excess of current assets over current liabilities and represent the capital available to run day-to-day operations within a business.
Net Dividend refers to the dividend paid by a company to its shareholders after excluding the tax credit received by the shareholders.
Net Domestic Product (NDP) represents the Gross Domestic Product (GDP) of a country minus the depreciation of its capital goods, providing an indication of capital obsolescence and the investment required to sustain current economic output.
Net earnings, also known as net income, represent the total profit of a company after all expenses and taxes have been deducted from total revenue. It is a crucial indicator of profitability.
Net Economic Welfare (NEW) is an alternative measure of economic well-being that adjusts GDP by accounting for non-market problems like pollution and adding non-market benefits such as leisure time and household production.
Net Estate is the portion of a decedent's estate that is subject to estate tax after all allowable deductions such as debts, funeral expenses, and administration costs have been subtracted from the gross estate.
Net income, also known as net earnings or net profit, is the sum remaining after all expenses have been fulfilled. It serves as a crucial metric that indicates a company's profitability.
Net Income Per Share, also known as Earnings Per Share (EPS), is the amount of profit or earnings allocated to each share of common stock after all costs, taxes, depreciation, and possible losses have been deducted.
Understanding the net investment in a lease involves considering the total amount of funds that a lessor has invested in a leased asset. This includes the cost of the asset, received grants, rental payments, taxation implications, residual values, and various interest payments and receipts.
Net Investment in a Lease refers to the total amount of the lessee's investment, calculated as the sum of lease receivables and any unguaranteed residual value of the leased asset, discounted to present value.
Net Investment Income refers to the excess of investment income over investment expenses. Individuals are allowed to deduct investment interest expenses for tax purposes to the extent of their net investment income.
In commercial real estate, Net Leasable Area (NLA) refers to the portion of a building or project that can be leased to tenants, excluding common areas and spaces dedicated to building operations.
Net Leasable Area (NLA) refers to the portion of a commercial building that is available for lease to tenants. It excludes common areas such as lobbies, restrooms, and utility rooms.
A net lease is a real estate lease agreement in which, in addition to the stipulated rent, the lessee (tenant) agrees to cover other expenses such as taxes, insurance, and maintenance. This arrangement results in the landlord receiving rent net of these expenses.
A listing agreement in which the real estate broker's commission is based on the amount by which the selling price of the property exceeds a specified (net) price set by the seller. This type of listing arrangement can be considered unethical or illegal in some states due to the potential for conflicts of interest.
Net loss occurs when a company's total expenses exceed its total income for a specific period, such as a fiscal quarter or year.
Net margin—the percentage of revenue that remains as net income after all expenses have been deducted—serves as a key indicator of a company's overall profitability and financial health.
The net margin ratio, also known as the net profit percentage, measures how much of each dollar of revenue earned by a company translates into actual profit after all expenses are deducted.
Net Operating Income (NOI) is a key metric in real estate and business investment that measures the profitability of an income-generating property before costs like taxes and financing expenses are considered.
Net Operating Income (NOI) is a critical metric in the real estate industry that assesses the profitability and financial health of income-generating properties. By calculating NOI, investors can evaluate the operating performance of properties without considering financing, taxes, or capital expenditures.
An analysis of Net Operating Loss (NOL), detailing its definition, examples, frequently asked questions, related terms, resources, and suggested readings.
The deduction of a net operating loss (NOL) incurred in one tax year in another tax year. This mechanism allows businesses to adjust their taxable income by carrying losses forward or backward to reduce tax liabilities.
Net Present Value (NPV) is a method of determining whether the expected financial performance of a proposed investment promises to be adequate. It assesses the profitability of an investment by comparing the present value of future cash flows to the initial investment.
A method of capital budgeting where the value of an investment is calculated by determining the total present value of all cash inflows and outflows minus the initial investment cost.
Net Present Value (NPV) is a financial metric that measures the value of an investment or project by calculating the present value of expected future cash flows, discounted at a specified rate.
Net proceeds refer to the amount received from the sale or disposition of property, from a loan, or the sale or issuance of securities after the deduction of all costs incurred in the transaction.
Net profit, also known as net margin or net profit margin, represents the amount of revenue that remains after all the expenses of an organization have been subtracted from its total sales. It is a crucial measure of a company's financial performance and profitability.
Net Profit Margin is a financial metric that indicates the percentage of profit a company makes for every dollar of revenue after accounting for all expenses, including taxes.
Net Profit Percentage, also known as the Net Margin Ratio, is a critical financial metric that measures a company's profitability by expressing net profit as a percentage of sales revenue.
Net purchases refer to the total amount spent on purchases after accounting for returns, allowances, and discounts. This metric is crucial for businesses in tracking the actual cost of goods that remain in stock.
An essential liquidity measure that determines if a business can meet its short-term obligations with its most liquid assets.
The effective interest rate on a loan resulting from dividing the interest by the actual proceeds received. For instance, on a $1,000 discounted loan with a 10% interest rate, the net interest would be $100/$900 = 11.1%.
