Glossary

National Association of Securities Dealers (NASD):
A nonprofit self-regulatory organization for the over-the-counter market under the supervision of the Securities as and Exchange Commission.

National Association of Securities Dealers Automated Quotation System (NASDAQ):
A nation-wide computerized system for brokers and dealers that provides price quotations for issues traded over-the-counter (OTC) as well as exchange listed securities.

NASDAQ Composite Index:
A market value weighted index comprised of about 3,500 stocks traded on the NASDAQ exchange. NASDAQ represents the top tier of the over-the-counter (OTC) market.

Net Asset Value (NAV):
The market 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 redemption's 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 3-Yr Growth Rate:
The unweighed average of the growth rate for net income over the last three fiscal years for a given corporation.

Net Income:
Generally considered the remaining sum after all the expenses have been made or deducted. It is considered a measure of a company's relative profitability.

Neutral Strategy:
An option strategy (or stock and option position) that is neither bullish nor bearish.

Neutral:
An adjective describing the belief that a stock or the market in general will neither rise nor decline significantly.

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. See also MUTUAL FUND

Non-marginal 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.

Not-held order:
An order that gives a broker discretion as to the price and timing in executing the best possible trade. By placing this order, a customer agrees to not hold the broker responsible if the best deal in not obtained.

New York Stock Exchange (NYSE):
The largest stock exchange in the United States; a corporation operated by a board of directors that is responsible for listing securities, setting policy and supervising member and exchange activities.