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- NAICS Codes
- North American Industrial Classification System
codes that use numerical values to identify industries.
- Naked Option Writing
- Writing an option without an offsetting
- The automated quotation system for the OTC
market, showing current bid‐asked prices for thousands of
- Neglected-firm Effect
- That investments in stock of less
well‐known firms have generated abnormal returns.
- Net Asset Value (HAV)
- The value of each share expressed as
assets minus liabilities on a per‐share basis.
- Net Pension Obligation
- The cumulative difference between
annual pension cost and the employer’s contribution to the
- Nominal Interest Rate
- The interest rate in terms of nominal
(not adjusted for purchasing power) dollars.
- Nondirectional Strategy
- A position designed to exploit
temporary misalignments in relative pricing. Typically
involves a long position in one security hedged with a short
position in a related security.
- Nondiversifiable Risk
- See systematic risk.
- Nonsystematic Risk
- Nonmarket or firm‐specific risk factors
that can be eliminated by diversification. Also· called unique
risk or diversifiable risk. Systematic risk refers to risk
factors common to the entire economy.
- Normal Cost
- The annual cost assigned, under the actuarial
funding method, to current and subsequent plan years.
Sometimes referred to as “current service cost”. Any payment
Toward the unfunded actuarial accrued liability is not part of
The normal cost.
- Normal Distribution
- Bell‐shaped probability distribution
that characterizes many natural phenomena.
- Notional Principal
- Principal amount used to calculate swap