A situation in which the cost of financing a securities or financial futures position exceeds the yield earned. Taobiz explains Negative Carry A negative carry would occur if an investor borrowed $1000 at 12.5% and used the $1000 to purchase a bond yielding 9.5%. The bond's coupons would not cover the interest owing, so the investor would end up paying 3% to make the investment. An investor might, however, achieve a positive after-tax yield if the bond is tax-exempt and interest on the loan is tax-deductible.
The National Stock Exchange is India's largest financial market. Established in 1992, the NSE has developed into a sophisticated, electronic market, which ranks third in the world for transacted volume. The NSE conducts transactions in the wholesale debt, equity and derivative markets. Taobiz explains National Stock Exchange Of India Limited - NSE based in Mumbai, India, the National Stock Exchange is a leader in market technology. The exchange's supports more than 3,000 VSAT terminals, making the NSE the largest private wide-area network in the country. The National Stock Exchange has been a pioneer for Indian financial markets, being the first electronic limit order book to trade derivatives and ETFs.
The NASD was a self-regulatory organization of the securities industry responsible for the operation and regulation of the Nasdaq stock market and over-the-counter markets. It also administrated exams for investment professionals, such as the Series 7 exam. Taobiz explains National Association Of Securities Dealers - NASD The NASD watches over the Nasdaq to make sure the market operates correctly. In 2007, the NASD merged with the New York Stock Exchange's regulation committee to form the Financial Industry Regulatory Authority, or FINRA.
A measure of a company's investment in capital, found by subtracting non-cash depreciation from capital expenditures. This measure helps to give a sense of how much money a company is spending on capital items (such as property, plants and equipment), which are used for operations. Calculated as: Taobiz explains Net Investment Continued investment in the capital of a company is vital because the useful life of existing capital diminishes over time. The amount of net investment compared to such things as revenue will differ between industries and between businesses depending on how capital intensive the business is.
A type of security that allows holders to access excess cash flows resulting from securitized mortgage loan pools. Taobiz explains Net Interest Margin Securities - NIMS Excess cash flows from the securitized mortgage loan pools are transferred to a trust account through a NIMS transaction. From this trust account, investors of the NIMS receive interest payments.
The difference between the closing price of a security on the day's trading and the previous day's closing price. Net change can be positive or negative and is quoted in terms of dollars. This is what the newspaper stock tables quote. Taobiz explains Net Change Net change is used in technical analysis to analyze stock prices. For example, if ABC stock closed at $10 yesterday and it closed at $10.25 today, then the net change is $.25. In the case where a stock price is automatically adjusted to reflect a dividend distribution or stock split, the net change will not be affected. Thus, a stock that trades at $60 one day and splits 2-for-1 the next day and closes at $30 will have a net change of zero.
A company's total cash minus total liabilities when discussing financial statements. Net cash is commonly used in evaluating a company's cash flow. More generally, net cash can refer to the amount of cash remaining after a transaction has been completed and all charges and deductions related to the transaction have been subtracted. "Net cash" may also be used as short form for "net cash per share", a stock investing term. More commonly, "net cash" will appear with another word, as in "net cash flow", "net cash income" or "net cash stock". Taobiz explains Net Cash Investors can use net cash to help determine whether a company's stock offers an attractive investment opportunity, and in some cases it can be used in conjunction with other measures to gauge the company's liquidity. Also, net cash might be used to assess whether a company has enough cash to make investments in future projects.
A former subsidiary of the New York Cotton Exchange (NYCE). The New York Futures Exchange traded options and futures on the NYSE Composite Index. The NYCE was acquired by the New York Board of Trade (NYBOT) in 2003. Taobiz explains New York Futures Exchange - NYFE The NYCE joined the Coffee, Cocoa and Sugar Exchange in 1998, to form the New York Board of Trade (NYBOT). NYBOT was acquired in January, 2007 by IntercontinentalExchange (ICE), which changed NYBOT's name to ICE Futures.