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Stock Market Help

Here is a list of common financial terms. Click on the letter that corresponds with the first letter of the financial term to get the definition.

NASDAQ Composite Index

A market value weighted index comprised of about 3,500 stocks traded on the NASDAQ exchange. Large technology stocks have a major effect on this index value. NASDAQ represents the top tier of the over-the-counter (OTC) market.

Net Amount

Quantity times price, plus or minus commission.

Net Asset Value (NAV)

The per share price of a mutual fund. For a no-load fund, NAV is the price received by both buyers and sellers. For front loaded mutual funds, NAV is equivalent of the bid price (what shareholders can get for selling a share), while the offering price is the price buyers must pay per share (and includes front load). The NAV is usually calculated at the end of each trading day by taking the closing prices of all securities owned plus cash and equivalents and subtracting all liabilities then dividing by the number of shares outstanding, which for open-end funds, fluctuates depending on daily number of redemptions and purchases. Many new funds are issued at a NAV of $10. After a distribution, the NAV falls by the amount equal to the distribution.

Net Income

The net income after taxes but before payout of common and preferred dividends for the indicated fiscal year for a given corporation.

Net Income 3-Yr Growth Rate

The unweighted average of the growth rate for net income over the last three fiscal years for a given corporation.

No-load funds

Mutual funds that have no initial sales charge. Beware that some no-loads have other charges and expenses. The best measure of all fees and charges is the five year fee.

Non-callable Bonds

Bonds which cannot be taken back by the issuer before maturity. Most U.S. Treasury issues are non-callable. This is an advantage to the lender since there is no interest rate risk. With callable bonds, there is the risk of having to reinvest before maturity at a potentially lower interest rate.

Non-marginable Securities

Securities that may not be purchased or sold in a margin account. All transactions involving them must be done on a full cash basis.

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