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Net Income
Net Income, also known as net profit or net earnings, is the amount of profit a company has left after all expenses, including taxes and interest, have been deducted from total revenue. It is a key indicator of financial health.
For example, if a company has $1 million in revenue and $800,000 in expenses, its net income is $200,000.
Net Margin
Net Margin is the percentage of net income to total revenue, indicating how much profit a company makes for every dollar of revenue after all expenses are deducted. It is a measure of profitability.
For example, if a company’s net income is $100,000 and its total revenue is $1 million, its net margin is 10%.
Net Present Value (NPV)
Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment by calculating the present value of expected future cash flows, discounted at a specified rate, minus the initial investment cost.
For example, an investor might use NPV to compare the profitability of different investment opportunities and choose the one with the highest NPV.
Net Profit
Net Profit, also known as net income or net earnings, is the amount of profit a company has left after all expenses, including taxes and interest, have been deducted from total revenue. It is a key indicator of financial health.
For example, if a company has $1 million in revenue and $800,000 in expenses, its net profit is $200,000.
Net Revenue
Net Revenue is the total revenue generated by a company after accounting for discounts, returns, and allowances. It represents the actual income earned from sales of goods or services.
For example, if a company has $1 million in gross sales and $100,000 in returns and discounts, its net revenue is $900,000.
Networking
Networking is the process of building and maintaining relationships with individuals or groups to exchange information, resources, and support. It is crucial for career development, business growth, and professional success.
For example, an entrepreneur might attend industry conferences and join professional associations to network with potential clients and partners.
Non-Compete Agreement
A Non-Compete Agreement is a contract between an employer and an employee that restricts the employee from working for competitors or starting a competing business for a specified period after leaving the company.
For example, a software company might require its developers to sign non-compete agreements to prevent them from joining rival firms immediately after resigning.
Non-Disclosure Agreement (NDA)
A Non-Disclosure Agreement (NDA) is a legal contract that protects confidential information shared between parties. It prevents the disclosure of proprietary or sensitive information to third parties without permission.
For example, a startup might ask potential investors to sign an NDA before sharing its business plan and proprietary technology details.
Non-Profit Organization
A Non-Profit Organization is an entity that operates for a charitable, educational, or social purpose rather than for profit. Any surplus revenues are reinvested in the organization’s mission rather than distributed to shareholders.
For example, a non-profit organization might provide educational programs and support services to underserved communities.
Non-Recourse Loan
A Non-Recourse Loan is a type of loan secured by collateral, usually real estate, where the lender’s only remedy in case of default is to seize the collateral. The borrower is not personally liable beyond the collateral.
For example, if a borrower defaults on a non-recourse loan for a property, the lender can foreclose on the property but cannot pursue the borrower’s other assets.
Non-Voting Shares
Non-Voting Shares are a type of equity security that provides ownership in a company without the right to vote on corporate matters. These shares typically offer dividends and capital appreciation but no influence on company decisions.
For example, a company might issue non-voting shares to raise capital without diluting the control of existing voting shareholders.
Notional Value
Notional Value refers to the total value of a leveraged position’s underlying assets. It is used in derivatives trading to describe the scale of an investment without considering the actual amount of money invested.
For example, an options contract might have a notional value of $100,000, even though the actual investment is much smaller.
Novation
Novation is the act of replacing one party in a contract with another, or replacing one contractual obligation with another, with the consent of all parties involved. It transfers all rights and obligations to the new party.
For example, a company might use novation to transfer a service contract to a new provider, with the consent of the client.
NPV (Net Present Value)
Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment by calculating the present value of expected future cash flows, discounted at a specified rate, minus the initial investment cost.
For example, an investor might use NPV to compare the profitability of different investment opportunities and choose the one with the highest NPV.
Niche Market
A Niche Market is a specific, defined segment of a larger market that has unique preferences or needs. Companies targeting niche markets often offer specialized products or services tailored to those specific needs.
For example, a company might target a niche market by offering eco-friendly and sustainable clothing to environmentally conscious consumers.
No-Shop Clause
A No-Shop Clause is a provision in a merger or acquisition agreement that restricts the seller from soliciting or negotiating with other potential buyers for a specified period. It aims to prevent the seller from seeking better offers.
For example, during the sale of a company, the buyer might include a no-shop clause to ensure that the seller does not entertain competing bids while finalizing the deal.
Nominal Interest Rate
The Nominal Interest Rate is the interest rate stated on a loan or investment agreement, not adjusted for inflation. It represents the actual monetary cost of borrowing or the return on investment.
For example, if a loan has a nominal interest rate of 5%, the borrower pays 5% of the loan amount annually, regardless of inflation rates.
Non-Compete Agreement
A Non-Compete Agreement is a contract between an employer and an employee that restricts the employee from working for competitors or starting a competing business for a specified period after leaving the company.
For example, a software company might require its developers to sign non-compete agreements to prevent them from joining rival firms immediately after resigning.
Non-Disclosure Agreement (NDA)
A Non-Disclosure Agreement (NDA) is a legal contract that protects confidential information shared between parties. It prevents the disclosure of proprietary or sensitive information to third parties without permission.
For example, a startup might ask potential investors to sign an NDA before sharing its business plan and proprietary technology details.
Non-Profit Organization
A Non-Profit Organization is an entity that operates for a charitable, educational, or social purpose rather than for profit. Any surplus revenues are reinvested in the organization’s mission rather than distributed to shareholders.
For example, a non-profit organization might provide educational programs and support services to underserved communities.
Non-Recourse Loan
A Non-Recourse Loan is a type of loan secured by collateral, usually real estate, where the lender’s only remedy in case of default is to seize the collateral. The borrower is not personally liable beyond the collateral.
For example, if a borrower defaults on a non-recourse loan for a property, the lender can foreclose on the property but cannot pursue the borrower’s other assets.
Non-Voting Shares
Non-Voting Shares are a type of equity security that provides ownership in a company without the right to vote on corporate matters. These shares typically offer dividends and capital appreciation but no influence on company decisions.
For example, a company might issue non-voting shares to raise capital without diluting the control of existing voting shareholders.
Notional Value
Notional Value refers to the total value of a leveraged position’s underlying assets. It is used in derivatives trading to describe the scale of an investment without considering the actual amount of money invested.
For example, an options contract might have a notional value of $100,000, even though the actual investment is much smaller.
Novation
Novation is the act of replacing one party in a contract with another, or replacing one contractual obligation with another, with the consent of all parties involved. It transfers all rights and obligations to the new party.
For example, a company might use novation to transfer a service contract to a new provider, with the consent of the client.
NPV (Net Present Value)
Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment by calculating the present value of expected future cash flows, discounted at a specified rate, minus the initial investment cost.
For example, an investor might use NPV to compare the profitability of different investment opportunities and choose the one with the highest NPV.
Nurture Campaign
A Nurture Campaign is a marketing strategy aimed at building and maintaining relationships with potential customers through consistent and personalized communication. It often involves automated emails, social media interactions, and content marketing.
For example, a software company might run a nurture campaign to keep potential clients engaged with informative emails and updates until they are ready to make a purchase.