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Neural networks Neural networks are computer algorithms inspired by the structure and function of the animal brain. They learn patterns and relationships in data by passing inputs through interconnected processing units (neurons) and adjusting internal parameters to improve performance on a task. Key takeaways Neural networks model complex, often nonlinear relationships in data by mimicking…

Master Networking: Tips & Strategies for Success Networking is the intentional exchange of information and ideas among people with shared professional interests. It helps build relationships, uncover job and business opportunities, stay current on industry developments, and create mutually beneficial partnerships. Key takeaways Networking builds professional relationships that can lead to jobs, partnerships, and business…

Network Marketing (MLM): What it Is and How It Works Network marketing — also called multilevel marketing (MLM), affiliate marketing, consumer‑direct marketing, referral marketing, or home‑based business franchising — is a sales model that uses independent representatives to sell products and recruit others to do the same. Representatives typically earn commissions on their own sales…

Understanding the Network Effect The network effect is the phenomenon where a product or service becomes more valuable as more people use it. Increased participation improves utility, encourages more adoption, and can create a self-sustaining cycle of growth. Network effects are central to the success of many platforms in telecommunications, social media, e-commerce, and on-demand…

Netting What is netting? Netting is the process of offsetting multiple financial obligations between two or more parties to arrive at a single net amount owed. It reduces the number and size of payments, lowers settlement and credit risk, and simplifies accounting and cash management. How netting works Parties with reciprocal obligations compare and aggregate…

Netback: Definition, Calculation, Uses, and Example What is netback? Netback is a measure used by oil producers to express gross profit per unit (typically per barrel). It represents the revenue received from selling the products derived from one barrel of crude, minus the direct costs required to bring that barrel to market. Netback formula Price…

Net Worth: What It Is and How to Calculate It Key takeaways Net worth equals the value of assets minus liabilities. Positive net worth means assets exceed debts; negative net worth means the opposite. Individuals, businesses, sectors and countries can all have a net worth. In business, net worth is often called book value or…

Net Volume Definition Net volume is a technical indicator calculated by subtracting a security’s downtick volume from its uptick volume over a specified period. It shows whether more shares traded at upticks or downticks during that period and is typically plotted as bars beneath the price chart. How it’s calculated Net volume = Uptick volume…

Net Unrealized Appreciation (NUA) Net unrealized appreciation (NUA) is the increase in value of employer stock held inside a tax-deferred retirement plan. It’s the difference between the stock’s cost basis (what you originally paid or what was reported as income when the stock was contributed) and its market value at the time of distribution. NUA…

Net Tangible Assets (NTA): Definition, Calculation, and Examples What are net tangible assets? Net tangible assets (NTA) measure the physical (tangible) resources a company owns after removing intangible assets and liabilities. NTAs focus on items that can be touched or readily valued on the balance sheet—property, plant, equipment, inventory, cash, and receivables—while excluding assets without…

Net Settlement: What It Is and How It Works Net settlement is the process by which banks and clearing organizations aggregate the day’s payments and determine the single net amount each participant owes or is owed. Rather than settling each individual transaction, institutions net credits and debits and make a single transfer (or a small…

Net Sales: Definition, Calculation, and Why It Matters What are net sales? Net sales are a company’s gross sales minus sales returns, allowances, and discounts. Net sales measure the actual revenue a company retains from customers before accounting for the cost of goods sold (COGS) and operating expenses. Explore More Resources › Read more Government…

Net Receivables Definition and formula Net receivables represent the amount a company expects to collect from customers after estimating uncollectible accounts. Formula: Net Receivables = Accounts Receivable − Allowance for Doubtful Accounts Explore More Resources › Read more Government Exam Guru › Free Thousands of Mock Test for Any Exam › Live News Updates ›…

Net Realizable Value (NRV) Net realizable value (NRV) is the estimated amount a company expects to receive from selling an asset, after subtracting any costs directly associated with the sale (for example, production, selling, shipping, and disposal costs). NRV is used to ensure assets are not overstated on the balance sheet and supports conservative, accurate…

Net Profit Margin What it is Net profit margin (net margin) measures how much of a company’s revenue becomes profit after all costs and expenses. Expressed as a percentage, it shows how many cents of profit a company earns for each dollar of revenue. How it works Net profit margin is a comprehensive profitability metric…

What Are Net Proceeds? Net proceeds are the amount a seller actually receives from the sale of an asset after subtracting all selling-related costs and expenses from the gross sale price. These deductions can include commissions, closing costs, legal fees, taxes, advertising, outstanding liens, and any other costs required to complete the transaction. Key Takeaways…

Net Present Value Rule What it is The Net Present Value (NPV) rule states that a firm should accept investments or projects only if they produce a positive NPV—meaning the present value of expected cash inflows exceeds the initial outlay. Projects with negative NPV should be rejected. A project with NPV = 0 is expected…

Net Present Value of Growth Opportunities (NPVGO) NPVGO measures the per-share net present value of a firm’s expected future cash flows from growth investments—new projects, expansions, or acquisitions—after accounting for the cost of those investments. It isolates how much of a company’s current share value is attributable to expected future growth rather than to earnings…

Net Present Value (NPV) Net Present Value (NPV) measures whether a project or investment is expected to create value by comparing the present value of future cash inflows to the cost of the investment today. A positive NPV indicates the investment should, in theory, increase wealth; a negative NPV indicates it should decrease wealth. Why…

Net Premiums Written What it is Net premiums written (NPW) is the total amount of premiums an insurance company writes during a period, after accounting for reinsurance. In formula form: Net Premiums Written = Gross Premiums Written − Premiums Ceded to Reinsurers + Reinsurance Assumed Explore More Resources › Read more Government Exam Guru ›…

Net Premium: Definition and Importance Net premium is an insurance accounting measure equal to the expected present value (PV) of a policy’s benefits minus the expected PV of future premiums. It represents the pure cost of risk assumed under a policy and intentionally excludes expense loadings for administering and maintaining the policy. Insurers use net…

Net Operating Profit Less Adjusted Taxes (NOPLAT) What is NOPLAT? Net Operating Profit Less Adjusted Taxes (NOPLAT) measures a company’s after-tax operating profit assuming no debt — in other words, its unlevered, after-tax earnings from core operations. It starts with operating income (EBIT) and adjusts the tax expense to reflect taxes related to operating activities,…

Net Operating Profit After Tax (NOPAT) What is NOPAT? Net operating profit after tax (NOPAT) measures a company’s profitability from core operations after taxes, assuming no debt. It shows the operating earnings available to all providers of capital before financing effects (interest) and one-time items. NOPAT is useful for comparing operating efficiency across companies with…

Net Operating Loss (NOL): Definition, Rules, and How It Works Key takeaways * A net operating loss (NOL) occurs when allowable business deductions exceed taxable income for a tax period. * NOLs can be carried forward indefinitely but generally may offset only up to 80% of taxable income in a given year. * Carrybacks are…

Net Operating Income (NOI) Net operating income (NOI) measures the profitability of an income-producing property. It equals all property-generated revenue minus the operating expenses required to run the property. NOI is a before-tax figure and excludes financing costs and certain nonrecurring or accounting items. What NOI Includes and Excludes Includes: * Rental income * Parking,…

Net of Tax: Definition, Calculation, and Strategies Key takeaways * “Net of tax” means the amount remaining after taxes have been subtracted. * Comparing before- and after-tax values is essential for investing, purchasing decisions, and company performance analysis. * Strategies such as tax-advantaged investments, retirement accounts, and timing of sales can increase after-tax (net of…

Net Neutrality Net neutrality is the principle that internet service providers (ISPs) must treat all lawful internet traffic equally — without blocking, throttling (slowing), or prioritizing content or services for commercial reasons. In practice this means a user’s access and speed should not depend on the websites, applications, or devices they use. Why it matters…

Net-Net Investing Key takeaways * Net-net is a value-investing strategy from Benjamin Graham that values a company by its net current assets per share (NCAVPS), excluding long-term assets. * Graham recommended buying stocks trading at 67% or less of NCAVPS as potentially undervalued. * The approach emphasizes short-term liquidation value and safety but can miss…

Net National Product (NNP) Definition Net National Product (NNP) is the total market value of finished goods and services produced by a country’s residents—both domestically and abroad—after subtracting depreciation (the loss in value of capital used in production). It reflects the economy’s net output available for consumption and investment once worn-out or obsolete capital has…

Net Loss: Definition, Formula, and Examples Key takeaways * A net loss occurs when total expenses exceed total revenues for a reporting period. * It is reported on the income statement as a negative net profit (sometimes called a net operating loss, or NOL). * Causes include low revenue, high cost of goods sold (COGS),…

Net Liquid Assets Net liquid assets measure the cash a company could immediately access after covering its short-term obligations. They provide a snapshot of short-term financial flexibility and help assess a firm’s ability to meet payments, fund operations, and pursue opportunities without external financing. Definition and formula Liquid assets are items that can be quickly…

Net Lease: Definition and Types — Single, Double, Triple Key takeaways A net lease requires the tenant to pay rent plus some or all property expenses (taxes, insurance, maintenance). Net leases are common in commercial real estate and reduce a landlord’s operating responsibilities. Types of net leases: single (one expense), double (two expenses), and triple…

Net Investment Income (NII): What It Is and How It’s Taxed Net investment income (NII) is the income you receive from investments—such as interest, dividends, capital gains, rent, royalties, and certain annuity payments—after subtracting related expenses (commissions, brokerage fees, and other investment expenses). Since 2013, a separate Net Investment Income Tax (NIIT) of 3.8% applies…

Net Investment Definition Net investment is the amount a firm spends on capital assets (gross capital expenditures, or CAPEX) minus the depreciation (consumption of fixed capital) of those assets. It measures the real addition to an entity’s productive capital—plants, equipment, buildings, software—after accounting for wear, tear, and obsolescence. Key takeaways Net Investment = Capital Expenditures…

Net International Investment Position (NIIP) Definition The Net International Investment Position (NIIP) is a country’s financial balance with the rest of the world at a specific point in time. It equals the difference between the foreign assets owned by residents (government, private sector, and citizens) and the domestic assets owned by nonresidents: NIIP = Foreign…