What Is a No-Load Fund? A no-load fund is a mutual fund in which shares are sold without a commission or sales charge. This absence of fees occurs because the shares are distributed directly by the investment company, instead of going through a secondary party. This absence of a sales charges is the opposite of a load fund—either front-load
What Is No-Load Life Insurance? No-load life insurance is a type of life insurance in which no commission is paid for initiating or servicing the policy. By contrast, many insurance policies include both upfront and ongoing payments to the agent or representative who sold the insurance policy. Whereas no-load life insurance can be an attractive
What Is Nominal Gross Domestic Product (GDP)? The term nominal gross domestic product (GDP) refers to the GDP evaluated at current market prices. Put simply, nominal GDP is the total value of all goods and services produced in a given time period less the value of those made during the production process. GDP is the monetary value
What Is Nominalism? Nominalism is the concept that the dollar amount of a loan remains fixed on financial statements, despite fluctuations in inflation or exchange rates which may affect the actual purchasing power of the money. Nominalism puts the risk of inflation or depreciation of the currency on the creditor and the risk of deflation
What Is Nominal Quotation? A nominal quotation is a hypothetical price at which a share of stock or some other security might trade. The opposite of a nominal quotation is a firm quotation, which represents a binding offer to trade at a specific price. Key Takeaways Nominal quotations are provided by market makers to help
What Is the Nominal Rate of Return? The nominal rate of return is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation. If an investment generated a 10% return, the nominal rate would equal 10%. After factoring in inflation during the investment period, the actual (“real”)
What Is Nominal Yield? A bond’s nominal yield, depicted as a percentage, is calculated by dividing total interest paid annually by the face, or par, value of the bond. Key Takeaways A bond’s nominal yield, depicted as a percentage, is calculated by dividing total interest paid annually by the face, or par, value of the
What Is a Nominated Advisor (NOMAD)? A nominated advisor (NOMAD) is a financial services firm that assists with listing a company on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE). The Alternative Investment Market is a specialized unit of the LSE catering to smaller, more risky companies. The LSE requires that a
What Is Nominee Interest? Nominee interest is interest that a person collects on behalf of someone else. When a person receives nominee interest, they are responsible for either paying tax on that interest or passing the interest on to its rightful owner. If the person who receives the nominee interest opts to pass the money
What Is the Non-Accelerating Inflation Rate of Unemployment? The non-accelerating inflation rate of unemployment (NAIRU) is the specific level of unemployment that is evident in an economy that does not cause inflation to increase. In other words, if unemployment is at the NAIRU level, inflation is constant. NAIRU often represents the equilibrium between the state
