Stock market terms starting with N

Narrative Fallacy Market Psychology & Behavioural Finance qualitative The tendency to construct coherent stories that explain past events, giving false confidence about their predictability. Test: a causal story is accepted because it is coherent, without testing whether the same story would have predicted the outcome in advance

National Stock Exchange Indian Market, Regulation & Taxation qualitative India's largest stock exchange by trading volume, established in 1992 and fully electronic from the outset. Test: the security is admitted to trading on the NSE, whose benchmark index is the Nifty 50

Net Asset Value Funds, ETFs & Index Investing ₹ The per-unit value of a fund, computed as its assets less liabilities divided by units outstanding. NAV = (Market Value of Assets - Liabilities) / Number of Units Outstanding

Net Debt Fundamental Analysis & Valuation ₹ crore Total borrowings less cash and readily realisable investments, measuring debt after the cash available to repay it. Net Debt = Short-Term Borrowings + Long-Term Borrowings + Lease Liabilities - Cash and Cash Equivalents

Net Profit Financial Statements & Accounting ₹ crore The profit remaining after every expense, including interest and tax, has been deducted from income. Net Profit = Profit Before Tax - Tax Expense

Net Profit Margin Fundamental Analysis & Valuation % Net profit as a percentage of revenue, showing what proportion of each rupee of sales the company finally keeps. Net Profit Margin = Net Profit / Revenue x 100

New Fund Offer Funds, ETFs & Index Investing qualitative The initial subscription period during which units of a newly launched scheme are sold, usually at ₹10. Test: the scheme has no prior track record and units are offered at a fixed initial price during a stated window

New Tax Regime Indian Market, Regulation & Taxation ₹ India's simplified personal income tax structure with lower slab rates and almost no deductions, now the default. Taxable Income = Gross Income - the limited deductions permitted; tax computed on the new slab schedule

Nifty 50 Indian Market, Regulation & Taxation index points The NSE's benchmark index of 50 large Indian companies, weighted by free-float market capitalisation. Index Value = (Current Free-Float Market Capitalisation of Constituents / Base Market Capitalisation) x Base Value

Noise Trading Market Psychology & Behavioural Finance qualitative Trading on information that carries no genuine signal about value. Test: the trade is prompted by rumour, pattern or sentiment rather than by information that changes the asset's expected cash flows

Nominal GDP Economy, Macro & Market Cycles ₹ crore Gross domestic product measured at current prices, including the effect of inflation. Nominal GDP = Real GDP x GDP Deflator / 100

Nomination and Remuneration Committee Corporate Actions, Dividends & Governance qualitative A board committee responsible for recommending director appointments and setting executive pay policy. Test: the committee consists of non-executive directors with a majority independent, and an independent chair

Non-Controlling Interest Financial Statements & Accounting ₹ crore The share of a subsidiary's equity and profit that belongs to shareholders other than the parent company. Profit Attributable to Owners of the Parent = Consolidated Net Profit - Profit Attributable to Non-Controlling Interests

Non-Convertible Debenture Bonds & Fixed Income qualitative A debenture that cannot be converted into equity and is repaid in cash at maturity. Test: the instrument carries no conversion right; principal is repaid in cash on the stated date

Non-Current Assets Financial Statements & Accounting ₹ crore Assets a company expects to hold and use for more than twelve months, such as plant, buildings, intangibles and long-term investments. Non-Current Assets = Property, Plant and Equipment + Capital Work in Progress + Intangibles + Long-Term Investments + Other Non-Current Assets

Non-Current Liabilities Financial Statements & Accounting ₹ crore Obligations not due for settlement within twelve months, principally long-term borrowings, lease liabilities and deferred tax. Non-Current Liabilities = Long-Term Borrowings + Non-Current Lease Liabilities + Deferred Tax Liabilities + Long-Term Provisions

Notes to Accounts Financial Statements & Accounting qualitative The detailed disclosures accompanying the financial statements that explain accounting policies and break down the summary figures. Test: the note forms an integral part of the financial statements and is covered by the audit opinion

Novation Orders, Execution & Market Structure qualitative The legal substitution by which a clearing corporation replaces the original trade with two new contracts, becoming counterparty to both sides. Test: one bilateral contract is replaced by two contracts, each with the clearing corporation as the opposite party

NSDL Indian Market, Regulation & Taxation qualitative The National Securities Depository Limited, the first depository established in India, holding securities in electronic form. Test: the demat account number is a 16-character alphanumeric identifier beginning with IN

Terms starting with N