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NASDAQ – the name derives from the “National Association of Securities Dealers Automated Quotation System.” A major national and international over the counter stock market that uses computers and telecommunications for trading securities. Unlike the New York Stock Exchange and other Exchanges that use specialists located at a central physical location (a trading floor) to make markets, NASDAQ uses a system of competing market maker firms that list specific prices for the sale or purchase of securities. Market makers trade for their own account and profit on the spread between bid and ask prices. Market makers may be located anywhere. Established in 1971, the Nasdaq lists over 4,000 securities, with a heavy weighting towards technology stocks.
National Association Of Securities Dealers (NASD) – the self regulatory body of the securities industry responsible for monitoring and establishing supervisory procedures for brokers. In order to act as a broker, individuals must pass a licensing procedure with the NASD.
Negative Divergence – the situation when two or more indicators, indexes, or averages, fail to show confirming trends.
Net Asset Value (NAV) – the company’s total assets less its liabilities. Also referred to as shareholder equity.
Net Change – the amount by which a security’s closing price is different from the closing price in the previous trading period.
Net Income – the company’s total earnings, reflecting revenues adjusted for costs of doing business, depreciation, interest, taxes and other expenses.
Net Sales – total sales less returned merchandise and discounts. Also called “top line”, and listed at the top of the income statement.
Net Worth – the amount by which assets exceed liabilities. Same as shareholder equity or book value. Approximates the portion of the amounts invested in a company attributable to shareholders. Although net worth shown on the balance sheet is sometimes used as an indication of the value of the shareholders’ ownership, it is almost never exactly equal to the market value of the shareholders’ ownership. It is, however, often an indication of what investors have paid.
New Issue – a stock recently issued on a stock exchange, see also Initial Public Offering.
New York Stock Exchange (NYSE) – the oldest and largest organized securities exchange in the United States. Although the New York Stock Exchange trades the stocks of only a small percentage of America’s businesses, these businesses are generally the country’s largest and best-known firms.
Noise – in technical analysis: price and volume fluctuations that can confuse interpretation of market direction.