What Is Nonfeasance? Nonfeasance is a legal concept that refers to the willful failure to execute or perform an act or duty required by one’s position, office, or law whereby that neglect results in harm or damage to a person or property. The perpetrator can be found liable and subject to prosecution. Nonfeasance differs from
What Is a Nonfinancial Asset? A nonfinancial asset is an asset that derives its value from its physical traits. Examples include real estate and vehicles. It also includes all intellectual property, such as patents and trademarks. The classification of possessions as nonfinancial assets is important to businesses as these items appear on a company’s balance
What Is Non-Fluctuating? Non-fluctuating is a characteristic of constancy in a security or measurement’s value, rate of change, or other metric. Non-fluctuating is a feature of a fixed-rate asset which has a constant yield, such as a government-issued debenture. (However, the market price of a bond will fluctuate as interest rates change). A non-fluctuating characteristic
What Is a No-Load Annuity? A no-load annuity is a type of retirement investment that charges lower fees and expenses than annuities usually entail. The monthly payments that the investor receives are based on the returns on the account, which is managed by the investor. No-load annuities are not sold by commission-based brokers or planners because
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”)
