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Non-Negotiable: Definition, Examples, and Financial Impact Non-negotiable describes prices, contract terms, or financial instruments that cannot be altered, transferred, or bargained over. In finance, non-negotiable items are typically fixed, illiquid, or legally restricted from reassignment. Understanding which items are non-negotiable and how they differ from negotiable ones helps with contract decisions, investing, and personal budgeting….

Non-Negotiable: Definition, Examples, and Financial Impact Non-negotiable describes prices, contract terms, or financial instruments that cannot be altered, transferred, or bargained over. In finance, non-negotiable items are typically fixed, illiquid, or legally restricted from reassignment. Understanding which items are non-negotiable and how they differ from negotiable ones helps with contract decisions, investing, and personal budgeting….

Non-Member Banks: Definition and Overview Non-member banks are U.S. banks that are not members of the Federal Reserve System. They are always state‑chartered (nationally chartered banks must be Fed members) and are generally regulated primarily by the Federal Deposit Insurance Corporation (FDIC) and by state banking authorities rather than by the Federal Reserve. How Non-Member…

Non-Marketable Security What it is A non-marketable security is a financial asset that cannot be readily bought or sold on public secondary markets. These securities are typically traded only through private transactions or over-the-counter (OTC) arrangements — and in some cases are not transferable at all because of legal restrictions. How they work Liquidity: Non-marketable…

Non-Marginable Securities What they are Non-marginable securities are assets that a brokerage will not allow an investor to buy using borrowed funds from a margin account. These securities must be paid for in full with the investor’s cash and do not count toward margin buying power. Why brokers restrict them Brokers designate certain stocks as…

Non-Issuer Transaction A non-issuer transaction is the purchase or sale of a security that does not involve the issuing company — in other words, the issuer neither benefits from nor participates in the trade. Most ordinary secondary-market trades (for example, stock trades on an exchange) are non-issuer transactions. Transactions that do involve the issuer include…

Non-Interest Income What it is Non-interest income is revenue financial institutions earn from sources other than interest on loans. It primarily comes from fees, service charges, and other non-lending activities. Common examples Deposit and account fees (monthly maintenance, inactivity, check fees) Transaction and ATM fees Overdraft, insufficient funds (NSF), late and penalty fees Credit card…

Non-Interest-Bearing Current Liability (NIBCL) What is a NIBCL? A non-interest-bearing current liability (NIBCL) is a short-term obligation a company or individual must pay within one year that does not accrue interest. These items appear in the current liabilities section of a balance sheet and represent routine expenses or debts due in the near term. Common…

Non-GAAP Earnings: Definition and How They Work in Analysis Non-GAAP earnings are alternative, company‑reported measures of profitability that adjust or exclude items from the standard GAAP (Generally Accepted Accounting Principles) results. Companies present these pro forma figures to highlight what they consider the performance of core operations by removing one‑time or nonrecurring items such as…

Nonfarm Payroll: What It Means and Why It Matters Key takeaways * Nonfarm payroll (NFP) measures the number of wage and salary workers in the U.S. economy, excluding farm employees, the self‑employed, private household workers, nonprofit and some special government employees, and active-duty military. * The Bureau of Labor Statistics (BLS) collects NFP data through…

Non-Exempt Employee What it means A non-exempt employee is covered by the Fair Labor Standards Act (FLSA) and is entitled to: – At least the applicable minimum wage. – Overtime pay at 1.5× their regular hourly rate for hours worked over 40 in a workweek. Non-exempt status is determined by a combination of pay level…

Non-Executive Director A non-executive director (NED) is a member of a company’s board who provides independent oversight, strategic guidance, and constructive challenge to the executive team without being involved in day-to-day management. NEDs help ensure that the board acts in the long‑term interests of shareholders and other stakeholders. Key takeaways NEDs focus on strategy, governance,…

Non-Disclosure Agreement (NDA) Key takeaways * An NDA is a legally binding contract that creates a confidential relationship and limits disclosure of specified information. * NDAs are used in business negotiations, hiring, fundraising, partnerships, and any situation where sensitive information is shared. * Common types: mutual (both sides), unilateral (one-way), and disclosure agreements (authorize sharing)….

Non-Deliverable Swap (NDS) What is an NDS? A non-deliverable swap (NDS) is a currency swap used when one of the currencies is restricted, illiquid, or not freely convertible. Unlike a conventional currency swap, there is no physical exchange of the restricted currency. Instead, counterparties settle the net difference in a freely convertible currency (commonly U.S….

Non-Deliverable Forward (NDF) What is an NDF? A non-deliverable forward (NDF) is an over-the-counter (OTC) foreign-exchange derivative used to hedge or speculate on currencies that are restricted, illiquid, or not freely convertible. Instead of exchanging the underlying currencies at maturity, parties settle the contract in cash—usually in a freely traded currency such as the U.S….

Non-Covered Security: What It Means and How It’s Reported What is a noncovered security? A noncovered security is a designation that determines whether a broker must report the security’s adjusted cost basis to the IRS. For noncovered securities, brokers generally do not report cost basis to the IRS; they may report proceeds of a sale,…

Non-Controlling Interest A non-controlling interest (NCI), also called a minority interest, is an ownership stake in a company in which the holder owns less than 50% of the outstanding shares and therefore lacks control over corporate decisions. NCIs appear in consolidated financial statements when a parent company owns a majority stake in a subsidiary and…

Non-Competitive Tender A non-competitive tender is an offer by a non-institutional (retail) investor to purchase U.S. Treasury securities without specifying the price. Instead of bidding in the competitive auction that sets yield and price, non-competitive bidders accept the market yield determined by the competitive bidding process of large institutional buyers. Key takeaways Non-competitive tenders let…

What Is a Non‑Compete Agreement? A non‑compete agreement (also called a covenant not to compete or restrictive covenant) is a contract that limits an employee’s ability to work for or start a competing business after leaving an employer. Its purpose is to protect a company’s confidential information, trade secrets, customer relationships, and market position by…

Non-Cash Item A non-cash item is an accounting or banking term with two distinct meanings: In accounting, it refers to an expense or income recorded on financial statements that does not involve an immediate cash transaction (for example, depreciation or stock-based compensation). In banking, it describes a negotiable instrument (such as a check or bank…

Non-Cash Charge: Definition and Examples in Accounting A non-cash charge is an accounting expense or write-down that reduces a company’s reported earnings but does not involve an immediate cash outlay. These charges are recorded under accrual accounting to match costs with the periods in which they help generate revenue, even when the related cash was…

Non-Banking Financial Companies (NBFCs) Non-banking financial companies (NBFCs), also called nonbank financial institutions (NBFIs), provide many bank-like services without holding a banking license. Because they generally cannot accept traditional demand deposits, they operate under a different regulatory framework than banks and rely on market funding, bonds, or borrowings from banks. What NBFCs do NBFCs offer…

Non‑Amortizing Loan Key takeaways A non‑amortizing loan requires repayment of the principal in a single lump sum at maturity rather than through scheduled principal installments. Common forms include interest‑only loans, balloon‑payment loans, and deferred‑interest programs. These loans typically carry higher interest rates and shorter terms and require an exit strategy (refinance, sale, or takeout loan)….

Non-Assessable Stock: Meaning, How It Works, and an Example Key takeaways Non-assessable stock is equity that cannot be subject to additional levies by the issuing company; shareholders’ maximum liability is the purchase price. Most modern shares are non-assessable. In the 19th century, assessable stock—sold at a discount and subject to future calls for more funds—was…

Non-Accredited Investor: Definition, Rules, and What They Can Invest In What is a non-accredited investor? A non-accredited investor is a retail investor who does not meet the Securities and Exchange Commission’s (SEC) financial thresholds for accredited status. Most individual investors fall into this category. The SEC limits access to certain investments for non-accredited investors to…

Non-Accelerating Inflation Rate of Unemployment (NAIRU) The non-accelerating inflation rate of unemployment (NAIRU) is the unemployment rate at which inflation is stable — not rising or falling. It represents an equilibrium between labor-market slack and inflationary pressure: when actual unemployment equals NAIRU, inflation tends to remain constant; when unemployment falls below NAIRU, inflation tends to…

Nominee What is a nominee? A nominee is an individual or firm that holds securities or other property in its name on behalf of the actual (beneficial) owner. The nominee is recorded as the legal owner for administrative and transactional purposes, while the investor retains the economic rights—such as dividends, voting (in some arrangements), and…

Nomination Committee: Definition, Function, Importance What is a nomination committee? A nomination committee is a group within an organization’s corporate governance structure charged with identifying, evaluating, and recommending candidates for the board of directors and other senior roles. Its composition, size, and exact duties vary by organization. Explore More Resources › Read more Government Exam…

Nominated Advisor (NOMAD) A Nominated Advisor (NOMAD) is an LSE‑approved corporate finance firm that guides companies through admission to the Alternative Investment Market (AIM) and continues to oversee them after listing. AIM is the London Stock Exchange’s market tailored to smaller, growth-oriented companies with lighter listing requirements than the main market. The LSE requires an…

Nominal Yield Key takeaways Nominal yield (also called coupon yield) is the annual interest payment divided by a bond’s face (par) value. It is a fixed percentage set at issuance and does not change if the bond’s market price changes. Nominal yield is influenced primarily by expected inflation and the issuer’s credit risk. Nominal yield…

Nominal Value Nominal value (also called face value or par value) is the stated monetary value of a financial instrument. It differs from market value and is used for accounting, redemption, and some income calculations. Understanding nominal value helps interpret bond pricing, stock capital structure, and economic statistics that do or do not adjust for…

Nominal Rate of Return The nominal rate of return is the percentage gain or loss on an investment before accounting for taxes, fees, and inflation. It measures raw performance and is useful for comparing investments on a like-for-like basis before external factors are considered. Key takeaways Nominal return = change in market value divided by…

Nominal Interest Rate: Definition and Key Concepts A nominal interest rate is the stated or advertised rate on a loan, deposit, or financial instrument that does not account for inflation. It’s the rate you typically see quoted by banks and lenders. Because it ignores changes in purchasing power and the effects of compounding and fees,…

Nominal Gross Domestic Product What is nominal GDP? Nominal gross domestic product (GDP) is the total market value of all final goods and services produced within a country during a given period, measured at current prices. It does not adjust for changes in the price level (inflation or deflation), so movements in nominal GDP reflect…

Nominal Effective Exchange Rate (NEER) What is NEER? The nominal effective exchange rate (NEER) is an unadjusted, weighted average of a country’s exchange rates against a basket of foreign currencies. It expresses how much domestic currency is needed to purchase foreign currencies overall, rather than versus a single currency. How it’s constructed The basket typically…