What Is Net Asset Value (NAV)? Net Asset Value is the net value of an investment fund’s assets less its liabilities, divided by the number of shares outstanding. Most commonly used in the context of a mutual fund or an exchange-traded fund (ETF), NAV is the price at which the shares of the funds registered with
What Is Net Asset Value Per Share – NAVPS? Net asset value per share (NAVPS) is an expression for net asset value that represents the value per share of a mutual fund, an exchange-traded fund (ETF), or a closed-end fund. It is calculated by dividing the total net asset value of the fund or company
What Is the National Best Bid and Offer (NBBO)? The National Best Bid and Offer (NBBO) is a quote that reports the highest bid price and lowest ask (offered) price in a security, sourced from among all available exchanges or trading venues. The NBBO, therefore, represents the tightest composite bid-ask spread in a security. The
What Are Nonbank Financial Companies? Nonbank financial companies (NBFCs), also known as nonbank financial institutions (NBFIs), are financial institutions that offer various banking services but do not have a banking license. Generally, these institutions are not allowed to take traditional demand deposits—readily available funds, such as those in checking or savings accounts—from the public. This limitation
What Is a Negotiable Certificate of Deposit (NCD)? A negotiable certificate of deposit (NCD), also known as a jumbo CD, is a certificate of deposit (CD) with a minimum face value of $100,000—though NCDs are typically $1 million or more. They are guaranteed by the bank and can usually be sold in a highly liquid
What Is the National Commodity and Derivatives Exchange (NCDEX)? The National Commodity and Derivatives Exchange (NCDEX) is a commodities exchange dealing primarily in agricultural commodities in India. The NCDEX was established in 2003, and its headquarters are in Mumbai. Many of India’s leading financial institutions have a stake in the NCDEX. As of 2022, significant
What Is a Normal-Course Issuer Bid (NCIB)? A normal-course issuer bid is a Canadian term for a public company’s repurchase of its own stock in order to cancel it. A company is allowed to repurchase between 5% and 10% of its shares depending on how the transaction is conducted. Key Takeaways An NCIB is a
What Is a Named Beneficiary? A named beneficiary is an individual, decreed by a written legal document, who is entitled to collect assets from a trust, insurance policy, pension plan account, IRA, or any other financial instrument. Multiple named beneficiaries of a single property will share in the proceeds at the time of disposition. In
What Is a Narrow Basis? The term narrow basis refers to how close the cash price of a commodity is to its future price in the commodities futures market. Put simply, there is a small difference or spread between the spot price of a commodity and its price in a futures contract. This condition generally
What Is Narrow Money? Narrow money is a category of money supply that includes all physical money such as coins and currency, demand deposits, and other liquid assets held by the central bank. In the United States, narrow money is classified as M1 (M0 + demand accounts). In the United Kingdom, the narrowest measure of money is
