A value investing technique in which a company is valued solely on its net current assets. The net-net investing method focuses on current assets, taking cash and cash equivalents at full value, reducing accounts receivable for doubtful accounts, and reducing inventories to liquidation values. Total liabilities are then deducted from the adjusted current assets to get the company's net-net value. This method was introduced by Benjamin Graham Taobiz explains Net-Net Graham used this method back when financial information was not as readily available, valuations as a whole were very low and net-nets were much more prevalent in the market. When a viable company is identified as a net-net, it is about as close to a sure thing as you can get in the markets. These special occurrences are now basically non-existent in the market, but Graham's theories on valuing a company based on tangible assets remain useful.
A security's uptick volume minus its downtick volume over a specified period. An indicator very similar to money flow. Taobiz explains Net Volume The "money flow index" is a useful indicator of net volume.
A condition in which an investor has more short positions than long positions in a given asset, market, portfolio or trading strategy. Investors who are net short will benefit when the price of the underlying asset decreases. Taobiz explains Net Short Sometimes advanced traders will attribute a larger proportion of their portfolio to short positions rather than to long positions. This type of portfolio will increase as the prices of the underlying securities decrease because investors are borrowing securities from brokers and selling them on the market in hopes of buying them back later at a lower price. This type of position is taken by many large hedge funds and should only be attempted by experienced traders. Being net short is the opposite of being net long.
The ratio of net profits to revenues for a company or business segment - typically expressed as a percentage – that shows how much of each dollar earned by the company is translated into profits. Net margins can generally be calculated as: Taobiz explains Net Margin Net margins will vary from company to company, and certain ranges can be expected from industry to industry, as similar business constraints exist in each distinct industry. A company like Wal-Mart has made fortunes for its shareholders while operating on net margins less than 5% annually, while at the other end of the spectrum some technology companies can run on net margins of 15-20% or greater. Most publicly traded companies will report their net margins both quarterly (during earnings releases) and in their annual reports. Companies that are able to expand their net margins over time will generally be rewarded with share price growth, as it leads directly to higher levels of profitability.
A condition in which an investor has more long positions than short positions in a given asset, market, portfolio or trading strategy. Investors who are net long will benefit when the price of the asset increases. Taobiz explains Net Long Many mutual funds are restricted from short selling, which means the funds are usually net long. In fact, most individual investors do not hold large short positions, making the net long portfolio a common and usually expected investing situation. A position that is net long position is the opposite of a position that is net short.
Security that is tradeable but originally posed no cost to the seller. For example, a renounceable right being sold by the original owner to another investor is considered nil-paid. A right is an opportunity to purchase more shares, usually at discount, given to shareholders by a corporation. The shareholders receive these rights at no cost, and if the rights are renounceable, the shareholders can choose to sell them on the market. Taobiz explains Nil-Paid Though the word "nil-paid" may suggest that nil-paid rights give shareholders the right to acquire new shares for no cost, this is not the case. Nil-paid rights are only the right to acquire more shares at the current share price or a discount. The corporation issuing the rights to its shareholders does not receive payment for the rights, but if the shareholders decide to exercise the rights, they must pay for the securities they are given the right to buy.
Short for Japan's Nikkei 225 Stock Average, the leading and most-respected index of Japanese stocks. It is a price-weighted index comprised of Japan's top 225 blue-chip companies on the Tokyo Stock Exchange. The Nikkei is equivalent to the Dow Jones Industrial Average Index in the U.S. In fact, it was called the Nikkei Dow Jones Stock Average from 1975 to 1985. Taobiz explains Nikkei The index has been calculated since Sept 1950 (retroactively since to May 1949). A few years after the country's leading business newspaper the Nihon Keizai Shimbun (Nikkei or Japan Economic Daily) began to commission the calculations, it was renamed.
The securities market in New Zealand. The New Zealand Stock Exchange (NZX), based in Wellington, consists of the New Zealand Alternative Market, the New Zealand Stock Market and the New Zealand Debt Market. Together their purpose is to offer secure, liquid investments and opportunities to grow capital to individuals and companies alike. Taobiz explains New Zealand Stock Exchange (NZE) .NZ The NZX originated in New Zealand's 1870s Gold Rush, when the country's four biggest gold mines served as financial centers and each had its own exchange. It wasn't until 1974 that these entities merged to form the contemporary New Zealand Stock Exchange. In 2003, the NZX officially became a limited liability company, with its new name being the New Zealand Exchange Limited.