What Is a Net Lease? The term net lease refers to a contractual agreement where a lessee pays a portion or all of the taxes, insurance fees, and maintenance costs for a property in addition to rent. Net leases are commonly used in commercial real estate. In the purest form of a net lease, the tenant is
What Is Net Leverage (Insurance)? Net leverage is the sum of an insurance company’s net written premiums ratio and its net liability ratio. Net leverage is used to determine how exposed an insurer is to pricing and claims estimation errors. It is used as a gauge of the insurance company’s financial health. Key Takeaways An insurer’s
What Is the Net Liabilities to Policyholders’ Surplus Ratio? Net liabilities to policyholders’ surplus is the ratio of an insurer’s liabilities, including unpaid claims, reserve estimation errors, and unearned premiums, to its policyholders’ surplus. Also called the net liability leverage ratio, the net liabilities to policyholders’ surplus ratio represents the risk that an insurer’s loss
What Are Net Liquid Assets? Net liquid assets are a measure of an immediate or near-term liquidity position of a firm, calculated as liquid assets less current liabilities. Liquid assets are cash, marketable securities, and accounts receivables that can be readily converted to cash at their approximate current value. Key Takeaways Net liquid assets are
What Is Net National Product (NNP)? Net national product (NNP) is the monetary value of finished goods and services produced by a country’s citizens, overseas and domestically, in a given period. It is the equivalent of gross national product (GNP), the total value of a nation’s annual output, minus the amount of GNP required to purchase new goods to maintain existing
What Is Net-Net? Net-net is a value investing technique developed by the economist Benjamin Graham, in which a company’s stock is valued based solely on its net current assets per share (NCAVPS). Net-net investing thus focuses on current assets, taking cash and cash equivalents at full value, then reducing accounts receivable for doubtful accounts, and
What Is Net Neutrality? Network neutrality ensures that all data on the internet is treated equally by internet service providers (ISPs) and governments, regardless of content, user, platform, application, or device. For users, net neutrality enables access and transparency of internet content and allows access to all internet services and applications. Key Takeaways Network neutrality
What Is the Net Order Imbalance Indicator (NOII)? The Net Order Imbalance Indicator (NOII) is order imbalance information about the opening and closing crosses on the Nasdaq stock market, given to market users prior to executing the crosses. The NOII shows the actual supply and demand for a stock, based on actual buy-and-sell orders, 10 minutes before the
What Is Net Payoff? Net payoff is the profit or loss from the sale of an item or service after the costs of selling it, any additional costs associated with the asset or experienced over the life of the asset, and associated accounting losses have all been subtracted. The amount that remains is considered to
What Is Net Premium? Net premium, an insurance industry accounting term, is calculated as the expected present value (PV) of an insurance policy’s benefits, minus the expected PV of future premiums. The net premium calculation does not take into account future expenses associated with maintaining the insurance policy. Net premiums, along with gross premiums, help
