National Association of Securities Dealers (NASD)

A self-regulatory organization of broker/dealers operating in the NASDAQ market. The NASD owns and operates the NASDAQ. In Nigeria, the NASD would operate the over-the-counter market.

National Association of Securities Dealers Automated Quotation System (NASDAQ)

A securities market in the United States which does not have any physical trading floor but uses computers and telecommunications network to effect transactions. Owned by the National Association of Securities Dealers, NASDAQ is one of the largest securities markets in the world.

Negative Pledge Clause

A clause attached to a debenture stock barring the issuer from pledging the assets of the company if doing so would jeopardize the ability of the company to meet its commitments to the bondholders under the particular indenture. (also called covenant of equal coverage).

Net

Any figure from which some liability, such as tax, has been deducted. Thus, net dividend is one from which standard rate income tax has been deducted.

Net Asset

The total asset less total liabilities of a company. It is also referred to a net worth.

Net Asset Per Share

Net assets of a company divided by the number of its shares outstanding. (See net assets value).

Net Assets Value

The amount by which the assets of a company exceed its liabilities including loan and preference capital, divided by the number of equity shares in issue. For example, if the net asset is N30 million and there are 20 million, 50 kobo ordinary shares outstanding, the Net Asset Value per share is N1.50.

Net Capital Rule

A capital standard issued by securities commissions to operators, particularly broker/dealers, to maintain, at all times, a prescribed ratio of indebtedness to liquid assets. Under the rule, a firm is expected to always maintain a position where its liquid assets would at all times, surpass its indebtedness. This is aimed, essentially, at ensuring that intermediaries are in a state of readiness to meet their obligations.

New Issues

Securities of a government or corporate entity newly created and offered for subscription to the public, or to a select group of investors, in the case of private placement, or to a company's existing shareholders as with rights issues. New issues are a means of raising funds for development financing, and do enlarge the paid-up capital of a company.

Non-Convertible Securities

Securities which do not give the holder the right to convert his holdings into another class of securities of the issuer.

Non-Cumulative Preference Shares

Preference shares on which unpaid dividends do not accrue and cannot be claimed in arrears.

Non-Voting Securities

Securities which do not carry voting rights and thus preclude the holders from voting on corporate resolutions or elections. Preference shares are examples of non-voting securities.