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Nominal What “nominal” means In finance and economics, nominal refers to values expressed in current monetary units without adjustments for inflation, seasonality, compounding, or other modifiers. It can also mean a face or stated value — for example, a bond’s nominal (face) value is its value on paper, not its market price. In everyday usage,…

Noise Trader: Meaning and Market Impact A noise trader is an investor who makes buy or sell decisions based on signals they believe provide an edge but that, in reality, do not reliably produce returns better than random choices. The term arises from the idea that market prices contain “signal” (information about fundamental value) and…

Noise: Meaning, Causes, and How to Avoid It What is noise? In financial markets, “noise” refers to information or activity that obscures true underlying trends. Noise includes short-term price fluctuations, small corrections, and other market movements that do not reflect a fundamental change in value. The distinction between noise and genuine information was highlighted by…

Understanding No-Load Mutual Funds What is a no-load fund? A no-load mutual fund is one that sells shares without charging a sales commission (a “load”) when you buy or sell. That means the full amount you invest is put to work in the fund, rather than being reduced by an upfront or backend sales charge….

No-Shop Clause: Meaning and How It Works A no-shop clause (also called a no-solicitation clause) is a provision in an agreement between a seller and a prospective buyer that prohibits the seller from soliciting or negotiating with other potential buyers for a defined period. It is commonly used in mergers and acquisitions (M&A) and typically…

No-Par Value Stock No-par value stock is equity issued without a stated face (par) value on the company’s articles of incorporation or stock certificates. Its price is determined by supply and demand in the market rather than an assigned nominal amount. How it works Issuance: Shares carry no predetermined per-share value. The company’s stated capital…

No-Load Fund A no-load fund is a mutual fund whose shares are sold without a sales commission (load). When you buy or sell shares in a no-load fund, there is no up-front or back-end sales charge, so the full amount you invest is put to work in the fund. No-load funds still charge operating fees—most…

No-Documentation (No Doc) Mortgages What is a no-doc mortgage? A no-documentation (no-doc) mortgage is a home loan that does not require traditional income verification such as W-2s, pay stubs, or tax returns. Instead, approval was historically based on a borrower’s declaration of income or on the property’s resale potential. These loans carry higher risk because…

Nixon Shock: Definition, Causes, and Economic Impact Key takeaways The “Nixon Shock” refers to President Richard Nixon’s August 1971 decision to end U.S. dollar convertibility into gold and impose wage/price controls. It effectively terminated the Bretton Woods fixed-exchange-rate system and ushered in the modern era of fiat, floating currencies. Short-term goals included reducing unemployment, curbing…

What is a NINJA loan? A NINJA loan is an informal name for a loan issued without verifying a borrower’s income, employment, or assets. The acronym stands for “no income, no job, no assets.” Unlike conventional loans that require documentation such as pay stubs, tax returns, or bank statements, NINJA loans relied largely—or solely—on the…

Nikkei: How It Works and Special Considerations Key takeaways The Nikkei (Nikkei 225) is Japan’s leading stock index, made up of 225 blue‑chip companies listed on the Tokyo Stock Exchange (TSE). It is a price‑weighted index, so companies with higher share prices have greater influence. The index is calculated in Japanese yen and updated frequently…

Night Depository A night depository is a secured drop box mounted on the exterior of a bank or credit union that allows account holders—typically small businesses—to deposit cash, checks, and card receipts outside normal banking hours. Deposits are collected by bank staff and credited to the account on the next business day. Key points Designed…

Nigerian Scam (419 Fraud): Definition, How It Works, and How to Avoid It What is the Nigerian (419) scam? The Nigerian scam—also called the Nigerian letter scam, advance-fee fraud, or 419 fraud—is a confidence trick in which a sender promises the victim a large share of money in exchange for help moving or releasing funds…

Nifty Fifty: What it was and how it worked The Nifty Fifty was an informal label for about 50 large-cap U.S. stocks that dominated institutional portfolios in the 1960s and early 1970s. These companies were widely regarded as dependable, growth-oriented blue chips and were often recommended as “one-decision” stocks—investments investors could buy and hold indefinitely….

NEXUS: What It Means and How It Works NEXUS is a joint U.S.–Canadian Trusted Traveler program that speeds border crossings for pre‑screened citizens and permanent residents of the United States and Canada. It provides expedited processing at designated air, land, and sea ports of entry, reduces routine questioning, and helps border agencies focus resources on…

Understanding Next of Kin: Importance, Inheritance, and Responsibilities Next of kin refers to a person’s closest living relatives by blood, marriage, or adoption. This designation matters most when someone dies without a valid will (intestate), but it can also affect medical decisions, notifications, and handling of affairs when a person is incapacitated. Key points Next…

Next-In, First-Out (NIFO) What is NIFO? Next-In, First-Out (NIFO) is an inventory valuation approach that assigns to sold items the cost that would be required to replace them (the current or replacement cost), rather than the original historical cost paid when the inventory was purchased. Explore More Resources › Read more Government Exam Guru ›…

NEX: What It Is and How It Works Overview NEX is a separate trading board of the TSX Venture Exchange that provides a marketplace for companies that no longer meet TSX Venture’s ongoing listing standards. It is intended for firms with very low business activity or that have ceased active operations. NEX gives these companies…

News Trader: How They Trade the Market What is a news trader? A news trader seeks to profit from market volatility caused by scheduled announcements (earnings reports, central bank decisions) and unexpected events (natural disasters, geopolitical surprises). They act quickly to capture short-lived price moves that occur immediately before, during, or after news releases. How…

Newly Industrialized Country (NIC) A newly industrialized country (NIC) describes a nation whose economy sits between developing and highly developed classifications. NICs have shifted away from primarily agricultural activity toward industrialization and urbanization, with rising GDP, incomes, and standards of living. The term is used by economists and political scientists to describe economies that show…

New York Stock Exchange (NYSE) Overview The New York Stock Exchange (NYSE), located on Wall Street in New York City, is the world’s largest stock exchange by total market capitalization of listed companies. Founded in 1792, it has evolved from an open-outcry trading floor to a modern marketplace that combines an iconic physical trading floor…

New York Mercantile Exchange (NYMEX) Key takeaways NYMEX is a major commodity futures exchange, now part of the CME Group. It specializes in energy, precious metals, and agricultural futures and options. Contracts traded on NYMEX are used both for speculation and for hedging commercial risk. Historically an open-outcry, NYMEX has shifted heavily toward electronic trading….

New York Board of Trade (NYBOT) Key takeaways * NYBOT is a historic U.S. commodity futures exchange founded in 1870. * It specialized in agricultural commodities (coffee, sugar, cocoa, cotton) and later merged with the Coffee, Sugar and Cocoa Exchange (CSCE). * NYBOT became part of the Intercontinental Exchange (ICE) in 2006 and is now…

New Paradigm A “new paradigm” describes a fundamental shift in how people think, operate, or interact with an industry, technology, or market. In investing, it refers to ideas or innovations that promise to replace old methods and create new opportunities — but those promises often come with high uncertainty and volatility. What a new paradigm…

New Keynesian Economics Definition New Keynesian economics is a modern macroeconomic school that builds on classical Keynesian ideas by adding microeconomic foundations. It explains short-run fluctuations and involuntary unemployment through price and wage “stickiness”—the tendency of prices and wages to adjust slowly to changes in demand or supply—and highlights the powerful role of monetary policy….

New Issue: Definition, How It Works in Offerings, and Example A new issue is any stock, bond, or other security offered to investors for the first time. Companies use new issues to raise capital—either by selling equity (shares) or issuing debt (bonds). New issues from private firms typically occur through an initial public offering (IPO);…

Understanding Indication of Interest (IOI): How They Work and Examples An Indication of Interest (IOI) is a non-binding expression that signals a buyer’s intent to purchase an asset. IOIs appear most often in two contexts: securities offerings (especially before initial public offerings, IPOs) and mergers & acquisitions (M&A). They help parties gauge interest and begin…

New Home Sales New Home Sales (also called new residential sales) is a monthly economic indicator that measures sales of newly built homes in the United States. The U.S. Census Bureau publishes the data, which is used by economists, investors, and housing-market participants to gauge demand in the residential construction sector and to read signals…

New Growth Theory New Growth Theory is an economic framework that explains long-run economic growth as the result of purposeful human activities—entrepreneurship, innovation, knowledge accumulation, and technological change—rather than external, exogenous forces. It argues that ongoing profit-seeking and competition drive continuous improvements in productivity and rising real GDP per person. Key takeaways Growth is endogenous:…

New Fund Offer (NFO): What It Is and How It Works A New Fund Offer (NFO) is the first public subscription for a newly launched investment fund. Like an IPO for a company, an NFO raises capital that the fund manager will use to buy securities according to the fund’s stated strategy. Because NFOs lack…

What Is the New Economy? The “new economy” describes sectors and business models driven primarily by digital technologies, data, and services rather than traditional manufacturing and commodity production. First prominent in the late 1990s with the rise of the internet and powerful computing, the term captures a shift toward rapid innovation, information-driven value creation, and…

Indication of Interest (IOI) An Indication of Interest (IOI) is a non-binding expression that signals a buyer’s intent to purchase a security or acquire a company. IOIs appear in two main contexts: securities offerings (most commonly before an initial public offering, IPO) and mergers and acquisitions (M&A). They communicate serious interest and outline preliminary terms…

New Deal What the New Deal Was The New Deal was a sweeping set of U.S. federal programs, reforms, and regulations launched by President Franklin D. Roosevelt in the 1930s to respond to the Great Depression. Its goals were to reduce unemployment, stabilize the financial system, provide a social safety net, and restore public confidence…

Neutrality of Money The neutrality of money is an economic theory that asserts changes in the money supply affect only nominal variables (like prices and wages) and not real variables (such as output, employment, or the economy’s productive capacity). While many economists accept a form of neutrality in the long run, the theory is widely…

Neutral: Meaning, Strategies, Pros and Cons What “neutral” means A neutral position or neutral market view is one that is neither bullish nor bearish — the investor expects little or no net change in the price of a security or index over a given period. Neutral trends often appear as sideways price action or consolidation…