What is an NCUA-Insured Institution? An NCUA-insured institution is a financial institution that is a participant of the National Credit Union Administration (NCUA) program. Most NCUA insured institutions are federal- and state-chartered credit unions and savings banks. Accounts at NCUA-insured institutions are usually insured through the National Credit Union Share Insurance Fund (NCUSIF). The NCUA
What Is a Non-Disclosure Agreement (NDA)? A non-disclosure agreement (NDA) is a legally binding contract that establishes a confidential relationship. The party or parties signing the agreement agree that sensitive information they may obtain will not be made available to any others. An NDA may also be referred to as a confidentiality agreement. Non-disclosure agreements
What Is a Non-Deliverable Forward (NDF)? A non-deliverable forward (NDF) is a cash-settled, and usually short-term, forward contract. The notional amount is never exchanged, hence the name “non-deliverable.” Two parties agree to take opposite sides of a transaction for a set amount of money—at a contracted rate, in the case of a currency NDF. This means that counterparties
What Is Near-Field Communication (NFC)? Near-field communication (NFC) is a short-range wireless technology that makes your smartphone, tablet, wearables, payment cards, and other devices even smarter. Near-field communication is the ultimate in connectivity. With NFC, you can transfer information between devices quickly and easily with a single touch—whether paying bills, exchanging business cards, downloading coupons
What Is “Near the Money”? The phrase “near the money” refers to an options contract whose strike price is close to the current market price of the corresponding underlying security. Near-the-money is synonymous with at-the-money. It is very seldom that the underlying asset’s price will be exactly at the strike price. So, near-the-money is used
What Is a Neckline? The neckline is a level of support or resistance found on a head and shoulders pattern that is used by traders to determine strategic areas to place orders. A neckline connects the swing lows (which occur following the first two peaks) of the head and shoulders topping pattern. A move below
What Is the Needs Approach? The needs approach is a way of determining the appropriate amount of life insurance coverage an individual should purchase. This approach is based on the creation of a budget of expenses that will be incurred, including funeral expenses, estate settlement costs, and replacement of a portion of future income to
What Is Negative Convexity? Negative convexity exists when the shape of a bond’s yield curve is concave. A bond’s convexity is the rate of change of its duration, and it is measured as the second derivative of the bond’s price with respect to its yield. Most mortgage bonds are negatively convex, and callable bonds usually
What Are Negative Points? Negative points are essentially rebates that lenders pay to real estate brokers or borrowers to help them afford closing on mortgages that they issue. This system allows some qualified borrowers, who could not otherwise afford the expense of closing costs and settlement fees, to be able to purchase a home—usually in
What Is Negative Amortization? Negative amortization is a financial term referring to an increase in the principal balance of a loan caused by a failure to cover the interest due on that loan. For example, if the interest payment on a loan is $500, and the borrower only pays $400, then the $100 difference would
