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NASDAQ
National Association of Securities Dealers Automated Quotations system.


negotiable (instrument)
This refers to the right to transfer by endorsement and delivery. A check made payable to you is a negotiable instrument; you can endorse and it transfer it to another.


net assets (net worth)
This is the excess of the book value of assets over liabilities. If you have $100,000 of assets and $80,000 of liabilities, you have $20,000 of net assets.


net income (net profit or net earnings)
The excess of income over total expenses for a given period of operation for a business. This is most frequently stated for periods of operations such as "net income for the month ending (date)"; "net income for the quarter ending (date)"; or "net income for the year ending (date)."
See also gross profit.


net loss
This is the flipside of net income. When the total expenses for a period of operations exceed the income, the result is a net loss.


net operating loss
A loss from operating a business. For income tax purposes, a net operating loss may be carried back two years to offset prior income and get a refund of taxes paid in those years. Any remaining unused loss may be carried forward to benefit future tax years.
See also carryback.


net sales
Total (gross) sales minus discounts and minus returns and allowances. In some cases, delivery or shipping costs are deducted to arrive at net sales.


net worth
Total assets minus total liabilities equals net worth. Often called owner's equity or book value.
See also net assets.


nonoperating expense or income
These are expenses and revenue derived from sources other than the normal business function of a company; for example, investment interest income generated by the installment sale of surplus real estate. Since lending money is not a normal part of the company's business, the interest income is non-operating.
See also operating expensenet_assets.


non-probate property
Property that passes to heirs outside of the probate court, such as property in trust, certain life insurance proceeds, or property held in joint tenancy with rights of survivorship. Property passing to heirs under your will is subject to probate and is referred to as probate property.


nonprofit corporation (entity)
An entity formed for charitable purposes, or any corporation where the shareholders do not share in the profits. Under the income tax laws, many of these entities are referred to as Section 501(c)(3) organizations.
See also charitable organizations.
 

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