The role of this glossary is to present brief definitions of most of the key concepts in corporate finance and management (in total 900 names-definitions) with aim the reader to be able to understand and become familiar with the terminology in the analyses that will present in the category Corporate & Business.
Additionally, we hope that the reader by acquiring intimacy with the specific terminology, he will also love the science of finance and management, 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 Corporate Finance & Management. 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 Corporate Finance & Management
There are currently 24 names in this directory beginning with the letter N.
Naked option is an option held on its own, i.e. not used to hedge a holding in the asset or other options.
NASDAQstock quotation system of the National Association of Securities Dealers for stocks which trade over the counter as opposed to on an organized exchange.
National Association of Attorneys General (NAAG) an organization of state attorneys general.
Navigational change, principle of the more planning decisions commits for the future, the more important it is that managers periodically check on events and expectations and redraw plans as necessary to maintain a course of action toward a desired goal; this implies a willingness to change plans.
Negative pledge clause is a clause under which the borrower agrees not to permit an exclusive lien on any of its assets.
Negotiated share repurchase refers to buying back the stock of a large block holder (an unwanted acquirer) at a premium over the market price (greenmail).
Negotiated underwriting method of choosing underwriters. Most firms may choose their underwriter by negotiation.
Net lease is a lease in which the lesser promises to maintain and insure the equipment.
Net operating loss carry-over tax provision allowing firms to use net operating losses to offset taxable income over a period of years before and after the loss. Available to firms which acquire a loss firm only under strictly specified conditions.
Net Present Value capital budgeting criterion which compares the present value of cash inflows of a project discounted at the risk-adjusted cost of capital to the present value of investment outlays (discounted at the risk-adjusted cost of capital). Present value minus initial investment.
Net working capital current assets minus current liabilities.
Net worth books value of a company’s common stock, surplus, and retained earnings.
Niche opportunities a business strategy which aims at meeting the needs or interests of specific consumer groups.
No leveraged ESOP an employee stock ownership plan recognized under ERISA which does not provide for borrowing by the ESOP. Essentially, the same as stock bonus plans.
Nolo contendere a legal plea in which a defendant, without admitting guilt, declines to contest allegations of wrongdoing.
Nominal interest rate is the interest rate expressed in money terms.
Nondiscriminatory poison pillantitakeover defense plans which do not penalize acquirers exceeding a given shareholding limit. Include flip-over plans, preferred stock plans and ownership flip-in plans which permit cash offers for all shares.
Nonrefundable debt is the debt that may not be called in order to replace it with another issue at a lower interest cost.
Normal costs stream of contributions to a pension plan that is required to cover future employee service.
Normal distribution symmetric bell-shaped distribution that can be completely defined by its mean and standard deviation.
Normal return in event studies, the predicted return if no event took place, the reference point for the calculation of abnormal, or excess, return attributable to the event.
Noteunsecured debt with a maturity of up to ten years.
Note issuance facility (NIF) in the eurocurrency market, a facility that guarantees the company the right to borrow from a group of banks up to some agreed maximum.
NYSENew York Stock Exchange.
