The role of this glossary is to present brief definitions of most of the key concepts in economics and finance (in total 1064 names-definitions) as well as security markets (financial, capital, money) with aim the reader to be able to understand and become familiar with the terminology in the analyses that will present in the category economics.
Additionally, we hope that the reader by acquiring intimacy with the economic terminology, he will also love the science/art of economics, giving to it a significant part of his personal time.
In the following glossary we tried to include the most well-known definitions and terms in the field of Economics & Finance. If you still find that a term or definition is missing and you know that it can be included in this glossary, please do not hesitate to contact us via the contact form of our web-site (Contact Us) and the Liberal Globe will edit it and will include it.
Glossary Economics & Finance
There are currently 35 names in this directory beginning with the letter N.
Naked call writing
is named that procedure which an option trader follows when he wants to writ a call option on a stock that the option writer (seller) does not own.
Naked put writing
is named that procedure which an option trader follows when he wants to write a put option on a stock and the writer (seller) does not have the sufficient amount of cash (or securities) in his or her brokerage account to purchase the stock.
National Association of Securities Dealers (NASD)
is the name of a self-regulatory agency which has the task to establish rules and regulations and to monitor the activities of brokers and dealers in the over-the-counter market.
National Association Securities Dealers Automated Quotations (NASDAQ)
is the name of an automated nationwide communications network operated by the NASD which connects both the dealers and brokers in the over-the-counter market. NASDAQ provides current market-maker bid-ask price quotes to market participants.
National Market System (NASDAQ/NMS)
is called a segment over-the-counter market contained of issues with relatively large trading volumes. More detailed trading information is provided on stocks included in NASDAQ/NMS than on the other over-the-counter stocks.
Natural rate level of output
is called the level of aggregate output produced at the natural rate of unemployment.
Natural rate of unemployment
is called the rate of unemployment which is involved the full employment at which the labour demand equals the labour supply.
Necessity
is called the asset which has wealth elasticity less than 1. In other words, as the wealth grows the percentage increase in the demand for the asset is less than the percentage increase in wealth.
Net asset value
is the market value of an investment company's assets, less any liabilities, divided by the number of shares outstanding.
Net exports
are called the difference between the flow of domestic goods and services sold to foreigners and the flow of imported goods and services.
Net national product
is called the measure of national output which nets out the depreciation of productive equipment.
Net present value
is called the present value of future cash flows which are expected to be received from a particular investment less the initial cost of that investment.
Net worth
is named the value of a corporation to its owners and it is estimated from the difference between assets and liabilities listed in an institution's balance sheet.
Neutrality of money
is called that principle which mention that the money supply does not affect real variables like real output or unemployment, but rather the price level.
No growth model (zero growth model)
is that type of dividend account model in which dividends are assumed to maintain a constant value in perpetuity.
No load funds
are named all those mutual funds which are sold directly to the public with no sales commissions.
Noise traders
are called all these irrational or misinformed traders who cause deviations of stock prices from their fundamental value for a long period of time.
Nominal anchors
are called all the nominal macroeconomic variables (i.e. wages, exchange rate, certain prices) which are targeted explicitly in stabilization policies and are designed to orient the setting of other nominal prices in the aftermath of hyperinflations.
Nominal return
is called the percentage change in the value of an investment in a financial asset. The start and finale values of the asset are not adjusted for inflation during the time of the investment.
Non-factor risk (idiosyncratic risk or security specific risk)
is called that part of a security's total risk which is not affected by actions of various common factors and because of that can be diversified away.
Non-satiation
is called a condition whereby investors are assumed to always prefer higher levels of terminal wealth to lower levels of terminal wealth.
Non-systematic risk
is called that part of an asset's risk which is unique to the asset and because of that can be eliminated by diversification.
Nonactivist
is named an economist who believes that the performance of the economy would be improved if the government avoids active policy to eliminate unemployment.
Nonbank banks
are called all those limited service banks that either do not make commercial loans or alternatively do not take in deposits.
Nonmarket risk (unique risk or unsystematic risk)
is that part of a security's total risk which is not related to actions in the market portfolio and because of that can be diversified away.
Normal backwardation
is called a condition which describe an expected relationship between the futures price of an asset and the expected spot price of the asset on the delivery date of the contract. Normal backwardation states that the futures price will be less than the expected spot price.
Normal contango
is called a condition which describe an expected relationship between the futures price of an asset and the expected spot price of the asset on the delivery date of the contract. Normal contango states that the futures price will be greater than the expected spot price.
Normal probability distribution
is called a graphic situation of a symmetric bell-shaped probability distribution which is completely described by its mean and standard deviation.
Normative economics (positive economics)
is that branch of economies which passes judgement or provides advice on policy actions.
