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Net Interest Rate Spread What it is The net interest rate spread (NIRS) is the difference between the average yield a financial institution earns on its interest-earning assets (loans, credit cards, mortgages, etc.) and the average rate it pays on its interest-bearing liabilities (deposits, borrowings, etc.). It is a primary indicator of how much a…

Net Internal Rate of Return (Net IRR) Definition Net internal rate of return (Net IRR) is the internal rate of return on an investment after accounting for fees, carried interest, and other deductions. It represents the discount rate at which the net present value (NPV) of all net cash flows (outflows and inflows after fees)…

Net Interest Rate Differential (NIRD) What it is The net interest rate differential (NIRD) is the after-fees, after-tax difference between the interest earned on one currency and the interest paid on another when holding a forex position. It measures the net yield advantage (or disadvantage) of being long one currency and short another. Key points…

Understanding Net Interest Margin What is Net Interest Margin (NIM)? Net interest margin (NIM) measures the difference between the interest income a financial institution earns on its interest-bearing assets (loans, securities) and the interest it pays on its liabilities (deposits, borrowings), expressed as a percentage of average earning assets. It is a primary indicator of…

Net Interest Income Net interest income (NII) is the difference between the interest a financial institution earns on its interest-bearing assets and the interest it pays on its interest-bearing liabilities. It is a core measure of a bank’s ability to generate revenue from lending and investing activities. How NII works Interest-earning assets: loans (mortgages, auto,…

Net Income After Taxes (NIAT) Net income after taxes (NIAT) is a company’s profit remaining after all expenses and taxes have been subtracted from revenue. It appears at the bottom of the income statement and reflects the earnings available to reinvest in the business, pay dividends, repurchase shares, or pay down debt. How NIAT is…

Net Income (NI): Definition, Calculation, and Why It Matters Key takeaways Net income (NI), also called net earnings, is the amount remaining after all expenses, interest, taxes, and deductions are subtracted from total revenue (for businesses) or gross pay (for individuals). For companies, NI appears as the “bottom line” on the income statement and is…

Net Importer: Meaning, Example, Pros and Cons Definition A net importer is a country whose imports of goods and services exceed its exports over a given period. In aggregate, a net importer runs a current account deficit: the country buys more from the rest of the world than it sells to it. Explore More Resources…

Net Foreign Factor Income (NFFI) Key takeaways * NFFI is the difference between a country’s gross national product (GNP) and its gross domestic product (GDP): NFFI = GNP − GDP. * NFFI measures net income earned by residents and firms abroad minus income earned in the country by foreign residents and firms. * For most…

Net Foreign Assets (NFA) Definition Net foreign assets (NFA) measure the difference between a country’s external assets and its external liabilities: NFA = Foreign assets owned by residents − Domestic assets owned by non‑residents Explore More Resources › Read more Government Exam Guru › Free Thousands of Mock Test for Any Exam › Live News…

Net Exposure Net exposure measures how exposed a portfolio (commonly a hedge fund) is to overall market movements by comparing its long and short positions. Expressed as a percentage, it is the difference between total long exposure and total short exposure. Because it reflects offsetting bets, net exposure is often a better indicator of market-directional…

Net Exports: Definition, Calculation, and Economic Significance What are net exports? Net exports measure the difference between a country’s total exports and total imports over a given period: Net exports = Total exports − Total imports Explore More Resources › Read more Government Exam Guru › Free Thousands of Mock Test for Any Exam ›…

Net Domestic Product (NDP) Key takeaways * Net Domestic Product (NDP) measures a country’s annual economic output after accounting for wear and tear on capital. * Formula: NDP = GDP − Depreciation (also called Consumption of Fixed Capital, CFC). * NDP gives a better sense of sustainable production and long‑term economic health than GDP alone….

Net Debt-to-EBITDA Ratio: Definition, Formula, and Example Definition The net debt-to-EBITDA ratio measures a company’s leverage by comparing its net debt to its earnings. Net debt equals interest-bearing debt minus cash and cash equivalents. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. The ratio estimates how many years of current EBITDA would be…

Net Debt Per Capita — What it Is and Why It Matters Net debt per capita measures a government’s total debt on a per-person basis. It expresses how much debt, after subtracting cash and equivalents, would be attributable to each resident if the debt were evenly divided among the population. How it’s calculated Net debt…

What Is Net Debt? Net debt measures a company’s total debt after subtracting its cash and liquid assets. It shows how much debt would remain if the company used all immediately available cash to pay creditors — a more realistic view of financial obligations than gross debt alone. Net Debt Formula Net Debt = Short-term…

Net Current Asset Value Per Share (NCAVPS) Net Current Asset Value Per Share (NCAVPS) is a value-investing metric introduced by Benjamin Graham to identify deeply undervalued stocks. It estimates the per-share liquidation value of a company by focusing on current, tangible assets and subtracting all liabilities. Formula NCAVPS = (Current Assets − (Total Liabilities +…

Net Charge-Off (NCO) Key takeaways * Net charge-off (NCO) equals gross charge-offs minus recoveries on previously charged-off debt. * NCOs represent the portion of outstanding loans a lender does not expect to collect. * Regulators and investors monitor NCOs and NCO-to-loans ratios to assess lender credit quality and economic stress. What is a net charge-off?…

Net change Key takeaways * Net change is the difference between a security’s closing price in one trading period and the next. * It can be expressed as an absolute amount (currency) and as a percentage; both are commonly reported. * Net change underlies line charts and certain technical charting methods (for example, point-and-figure charts)…

Net Cash Net cash is a financial metric that describes a company’s available cash position after accounting for obligations. It’s used to assess liquidity and short-term financial flexibility. What Net Cash Means As a balance-sheet measure: net cash = total cash (and cash equivalents) − total liabilities (often specifically total debt). A positive net cash…

Net Asset Value Per Share (NAVPS) Net asset value per share (NAVPS), also called book value per share, measures the value of a fund or company on a per-share basis. It represents the portion of the fund’s net assets attributable to each outstanding share. Formula NAV = Assets − Liabilities NAVPS = NAV ÷ Shares…

Net Asset Value (NAV) Definition Net Asset Value (NAV) is the value of an investment fund determined by subtracting its liabilities from its assets. The per-share NAV equals the fund’s NAV divided by the number of outstanding shares. Funds typically calculate NAV at the end of each trading day using closing market prices. How NAV…

Nest Egg Definition A nest egg is a substantial sum of money or other assets saved or invested for a specific long-term goal — most commonly retirement, buying a home, or funding education. It can also serve as a reserve for unexpected emergencies. The phrase dates to the late 17th century and likely comes from…

Nepalese Rupee (NPR) Overview The Nepalese rupee (NPR) is the national currency of Nepal, issued and regulated by the Nepal Rastra Bank. The common symbol is Rs (occasionally Rp). The rupee is subdivided into 100 paisa. History and peg to the Indian rupee The NPR replaced the Nepalese mohar in 1932. In 1993 Nepal introduced…

Neoliberalism What it is Neoliberalism is an economic and policy approach that prioritizes free markets, private enterprise, and reduced government intervention in the economy. It emphasizes deregulation, privatization, free trade, fiscal austerity, and policies intended to increase market competition and economic efficiency. Neoliberalism does not rule out government action entirely but limits it to roles…

Neoclassical Growth Theory Overview Neoclassical growth theory explains long-run economic growth as the result of three core factors: capital accumulation, labor (including population growth), and technological progress. Introduced by Robert Solow and Trevor Swan in the 1950s, the framework highlights why economies may converge to a steady-state growth path and why technological change is essential…

Neoclassical Economics: Key Concepts, Impact, and Limitations What it is Neoclassical economics, developed from late‑19th‑century work by William Stanley Jevons, Carl Menger, and Léon Walras and popularized in the early 20th century by Alfred Marshall, explains prices and market outcomes through supply, demand, and individual choice. It emphasizes that consumers value goods and services according…

Nelson Peltz Key takeaways Co‑founder of Trian Fund Management (2005) and a prominent activist investor. Built his career in food distribution and leveraged buyouts, turning early family business experience into large-scale corporate deals. Known for pushing for board seats and strategic changes—divestitures, buybacks, cost cuts, management replacements—to unlock shareholder value. Early life and beginnings Nelson…

Understanding Negotiation: Key Stages and Effective Strategies What is negotiation? Negotiation is a strategic discussion between two or more parties aimed at reaching an agreement acceptable to all involved. It appears in everyday situations (like buying a car or negotiating a salary) and in complex affairs (business deals, diplomatic agreements). Successful negotiation combines preparation, information…

Negotiated Dealing System (NDS) Key takeaways * NDS is an electronic trading platform used to issue and trade Indian government securities and other money-market instruments. * It replaced manual, phone-based trading to improve transparency, speed, and settlement efficiency. * The platform includes a primary auction module and a secondary-market reporting/trading module; the NDS-OM order-matching system…

Negotiable Order of Withdrawal (NOW) Key takeaways * A NOW (Negotiable Order of Withdrawal) account is an interest-bearing demand deposit account that allowed customers to write drafts (checks) against deposited funds. * NOW accounts differed from regular checking primarily because they could pay interest and often carried a short advance-notice requirement. * The repeal of…

Negotiable Instruments: Definition, Types, and Uses A negotiable instrument is a signed, transferable document that promises payment of a specific sum of money to a named person, to the bearer, or to an assignee. It functions like a formal IOU and can often be used in place of cash because legal title to the payment…

Negotiable Certificate of Deposit (NCD) Definition A negotiable certificate of deposit (NCD), often called a jumbo CD, is a bank CD issued in large denominations—minimum face value $100,000 and commonly $1 million or more. NCDs are bank-guaranteed, typically eligible for deposit insurance up to applicable limits, and can be sold in a secondary market. They…

Negotiable Bill of Lading What it is “Lading” refers to loading cargo onto a ship. A bill of lading is a legal document between a shipper and a carrier that describes the goods, quantity, and destination, and it serves as both a receipt and a contract of carriage. A negotiable bill of lading (also called…

Negotiable: Definition, Features, Types, and How It Differs from Non‑Negotiable What “Negotiable” Means In business and finance, negotiable has two common meanings: A negotiable price or term is open to discussion and can be changed if the parties agree. A negotiable instrument is a transferable financial document that represents a guaranteed monetary value and can…