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Naked Writer
A seller of an option contract who does not own an offsetting position in the underlying security or a suitable alternative.

NASDAQ
An acronym for the National Association of Securities Dealers Automated Quotation System. NASDAQ is a computerized system that provides brokers and dealers with price quotations for securities traded OTC.

National Debt
The accumulation of total government borrowing over time .It is the sum of past deficits minus the sum of past surpluses.

National Policies
The Canadian Securities Administrators have developed a number of policies that are applicable across Canada. These coordinated efforts by the CSA are an attempt to create a national securities regulatory framework. Copies of policies are available from each provincial regulator.

National Do Not Call List (DNCL)
The Canadian Radio-television and Telecommunications Commission (CRTC) has established Rules that telemarketers and organizations that hire telemarketers must follow. The DNCL Rules prohibit telemarketers and clients of telemarketers from calling telephone numbers that have been registered on the DNCL for more than 31 days.

National Registration Database(NRD)
A web-based system that permits mutual fund salespersons and investment advisors to file applications for registration electronically.

Natural Unemployment Rate
Also called the full employment unemployment rate or the nonaccelerating inflation rate of unemployment (NAIRU). At this level of unemployment, the economy is thought to be operating at close to its full potential or capacity.

Near Banks
See Country Banks.

Negative Pledge Provision
A protective provision written into the trust indenture of a company's debenture issue providing that no subsequent mortgage bond issue may be secured by all or part of the company's assets, unless at the same time the company's debentures are similarly secured.

Negotiable
A Certificate that is transferable by delivery and which, in the case of a registered Certificate, has been duly endorsed and guaranteed.

Negotiated Offer
A term describing a particular type of financing in which the investment dealer negotiates with the corporation on the issuance of securities. The details would include the type of security to be issued, the price, coupon or dividend rate, special features and protective provisions.

Net Asset Value
For a mutual fund, net asset value represents the market value of the fund's share and is calculated as total assets of a corporation less its liabilities. Net asset value is typically calculated at the close of each trading day. Also referred to as the book value of a company's different classes of securities.

Net Carrying Amount (Net Book Value of the Assets)
The value of capital assets recorded on the balance sheet less accumulated depreciation or amortization.

Net Change
The change in the price of a security from the closing price on one day to the closing price on the following trading day. In the case of a stock which is entitled to a dividend one day, but is traded ex-dividend the next, the dividend is not considered in computing the change. The same applies to stock splits. A stock selling at $100 the day before a two-for-one split and trading the next day at $50 would be considered unchanged. The net change is ordinarily the last figure in a stock price list. The mark +1.10 means up $1.10 a share from the last sale on the previous day the stock traded.

Net Earnings
That part of a company's profits remaining after all expenses and taxes have been paid and out of which dividends may be paid.

Net Profit Margin
A profitability ratio that indicates how efficiently the company is managed after taking into account both expenses and taxes.

New Account Application Form (NAAF)
A form that is filled out by the client and the IA at the opening of an account. It gives relevant information to make suitable investment recommendations. The NAAF must be completed and approved before any trades are put through on an account.

New Issue
An offering of stocks or bonds sold by a company for the first time. Proceeds may be used to retire outstanding securities of the company, to purchase fixed assets or for additional working capital. New debt issues are also offered by government bodies.

New York Stock Exchange (NYSE)
Oldest and largest stock exchange in North America with more than 1,600 companies listed on the exchange.

NEX
A new and separate board of the TSX Venture Exchange that provides a trading forum for companies that have fallen below the Venture Exchange's listing standards. Companies that have low levels of business activity or who do not carry on active business will trade on the NEX board, while companies that are actively carrying on business will remain with the main TSX Venture Exchange stock list.

No Par Value (n.p.v.)
Indicates a common stock has no stated face value.

Nominal GDP
Gross domestic product based on prices prevailing in the same year not corrected for inflation. Also referred to as current dollar or chained dollar GDP.

Nominal Rate
The quoted or stated rate on an investment or a loan. This rate allows for comparisons but does not take into account the effects of inflation.

Nominee
A person or firm (bank, investment dealer, CDS) in whose name securities are registered. The shareholder, however, retains the true ownership of the securities.

Non-Client and Professional Orders
A type of order for the account of partners, directors, officers, major shareholders, IAs and employees of member firms that must be marked "PRO" , "N-C" or "Emp", in order to ensure that client orders are given priority for the same securities.

Non-Competitive Tender
A method of distribution used in particular by the Bank of Canada for Government of Canada marketable bonds. Primary distributors are allowed to request bonds at the average price of the accepted competitive tenders. There is no guarantee as to the amount, if any, received in response to this request.

Non-Controlling Interest
1. The equity of the shareholders who do not hold controlling interest in a controlled company; 2. In consolidated financial statements (i) the item in the balance sheet of the parent company representing that portion of the assets of a consolidated subsidiary considered as accruing to the shares of the subsidiary not owned by the parent; and (ii) the item deducted in the earnings statement of the parent and representing that portion of the subsidiary's earnings considered as accruing to the subsidiary's shares not owned by the parent. Also referred to as minority interest.

Non-Cumulative
A preferred dividend that does not accrue or accumulate if unpaid.

Non-Trading Employees
Employees of securities firms who are not primarily engaged in sales may occasional accept orders from the public. Such employees are designated as Non-Trading Employees and may be exempt from registration by the administrator.