Definition of Net Asset Net Asset means any item or property owned or controlled by a company or individual whose economic future benefit belongs to the holder. Brief Explanation of Net Asset Net asset is thus total assets of the company less liabilities. Net assets are calculated on fair market value basis. A company for example has […]

Definition of Net profit margin Net profit margin is the profit margin percentage of revenue after deducting all the operating expenses, interests and taxes. Net profit margin can be calculated as follows. Net Profit Margin = (Net Profit)/ Total Revenue Where Net profit =Total Revenue- Total Expenses Brief Explanation of Net profit margin Net Profit is […]

Definition of Net worth Net worth is a simple term which states the net assets of a business, individuals Government and other entities. For example, Asset- Liabilities= Net assets Assets include cash in hand and bank, investments, car, real estate, home , land , gold and anything of such value. Brief Explanation of Net worth […]

Definition of Nominal interest rate Nominal interest rate is an interest rate which does not include any kind of inflation. It is the plain advertisement interest rate on loan. It does not include any compounding fee or interest. Brief Explanation of Nominal interest rate For example, if a borrower borrows $ 100 at an interest rate of […]

Definition of Non-recurring engineering Non-recurring engineering refers to the cost of product which is incurred just one time in the manufacturing of the product. This cost may include research, design, development and testing of a new product.   Brief Explanation of Non-recurring engineering As it includes elements of cost like research and testing of new product, the […]

Definition of Net Assets value Net Assets value is simply the total assets of the business less it’s liabilities. In funds and investment reference Net asset value or NAV is value of per share of mutual fund. It can also be a book value or equity value of the company. Brief Explanation of Net Assets value […]

Definition of Net asset value and dividends Net asset value  and dividends have deep connection. That is paying dividend to shareholders out of profit actually decreases the NAV of their investment. This decrease however does not affect their initial fund value nor does it brings it to loss. Value of mutual funds is calculated by dividing total […]

Definition of NON-RECURRING INCOME NON-RECURRING INCOME in general means any event that happens only once and would not repeat. Non-recurring events are also known as extra ordinary events. They can be both income and expense cases. Non-recurring  in business means any unusual event that brought in income to the business, but would not happen again. […]

No Load Fund No Load Fund in which no charges or commission is deducted or charged during the time of sale or purchase of funds. This is because these funds are distributed directly by investment company rather than selling their shares through an intermediary or broker, hence no broker kind of fee is charged. Because […]