What is the National Market System (NMS)? The National Market System (NMS) promotes free market transparency by regulating how all major exchanges disclose and execute trades. It is the system for equity trading and order fulfillment in the U.S. that consists of trading, clearing, depository, and quote distribution functions. The NMS governs the activities of
What Is a No Cash-Out Refinance? A no cash-out refinance refers to the refinancing of an existing mortgage for an amount equal to or less than the existing outstanding loan balance (plus any additional loan settlement costs). It is done primarily to lower the interest rate charge on the loan and/or to change some of the terms
What Is a No-Fee Mortgage? A no-fee mortgage is when a lender charges no fees for a mortgage application, appraisal, underwriting, processing, private mortgage insurance, and other third-party closing costs. Instead, these fees may be included in a higher interest rate attached to the mortgage. Key Takeaways A no-fee mortgage does not involve traditional closing
What Is a Notice of Assessment? A notice of assessment (NOA) is an annual statement sent by the Canada Revenue Agency (CRA) to taxpayers detailing the amount of income tax they owe. It includes details such as the amount of their tax refund, tax credit, and income tax already paid. It also lists deductions from
What Is a No-Appraisal Mortgage? The term no-appraisal mortgage refers to a type of home loan that doesn’t require an appraisal. This means an independent opinion of the property’s current fair market value (FMV) is not necessary. The majority of lenders provide no-appraisal mortgages for refinancing purposes while others may offer them for first-time loans.
What Is a Non-Objecting Beneficial Owner (NOBO)? A non-objecting beneficial owner (NOBO) is a beneficial owner of a company who gives permission to a financial intermediary to release their name and address to the companies or issuers in which they have bought securities. This allows companies to contact the beneficial owner directly with various communication
What Is Net Operating Income (NOI)? Net operating income (NOI) is a calculation used to analyze the profitability of income-generating real estate investments. NOI equals all revenue from the property, minus all reasonably necessary operating expenses. NOI is a before-tax figure, appearing on a property’s income and cash flow statement, that excludes principal and interest
What is a Noise Trader? Noise trader is generally a term used in academic finance studies associated with the Efficient Markets Hypothesis (EMH). The definition is often vaguely stated throughout the literature though it is mainly intended to describe investors who make decisions to buy or sell based on factors they believe to be helpful
What Is the Norwegian Krone (NOK)? The Norwegian krone (NOK) is the official currency of Norway. Its regulation and circulation are controlled by the country’s central bank, the Norges Bank. The bank has issued its eighth series of banknotes, including the latest in November 2019, which saw new 1000-krone bills. The year before introduced the
What Is the Network Effect? The network effect is a phenomenon whereby increased numbers of people or participants improve the value of a good or service. The internet is an example of the network effect. Initially, there were few users on the internet since it was of little value to anyone outside of the military
