Nominal Value The nominal value is the face value of a security or bond, as stated by the issuer. In the UK, it is commonly used in reference to shares and bonds, differing from the market value due to trading fluctuations.
Net Asset Value (NAV) NAV represents the total value of a fund’s assets minus its liabilities, divided by the number of outstanding shares. In the UK, this is a critical metric for evaluating investment trusts and mutual funds.
Non-Domiciled Status Non-domiciled (non-dom) status allows individuals in the UK to avoid tax on foreign income and gains if they are not remitted to the UK. This status attracts wealthy international investors but is subject to scrutiny and periodic changes.
Negative Equity Negative equity occurs when the value of a property falls below the outstanding mortgage balance. In the UK, this was a significant issue during the 2008 financial crisis and remains a risk in volatile housing markets.
Nominee Account A nominee account holds investments on behalf of the investor to simplify administration. In the UK, brokers often use these accounts to manage client holdings while retaining beneficial ownership for the investor.
Net Income Net income is the profit remaining after all expenses, taxes, and costs are deducted from revenue. In the UK, this metric is used to evaluate a company’s profitability and shareholder return potential.
National Savings and Investments (NS&I) NS&I is a government-backed savings institution in the UK, offering products like Premium Bonds and Income Bonds. These are considered safe investments due to government guarantees.
Non-Performing Loan (NPL) An NPL is a loan where the borrower has failed to make scheduled payments for a prolonged period. In the UK, high levels of NPLs can indicate stress in banking or consumer credit markets.
Net Present Value (NPV) NPV calculates the current value of future cash flows, discounted at a specific rate. In the UK, it is widely used to assess the profitability of investment projects and business opportunities.
Nominal Yield Nominal yield is the annual income generated by a bond, expressed as a percentage of its face value. In the UK, this is a straightforward measure of returns on gilts and corporate bonds.
Non-Executive Director (NED) A NED sits on a company’s board to provide independent oversight and strategic guidance. In the UK, NEDs are key to ensuring strong corporate governance, particularly in listed companies.
Net Profit Margin The net profit margin measures a company’s profitability as a percentage of its revenue. In the UK, it is a critical indicator of financial health, especially in competitive sectors like retail.
No-Load Fund A no-load fund is a mutual fund without upfront or back-end sales charges. In the UK, these funds are popular among retail investors seeking low-cost options for portfolio diversification.
Non-Core Asset Non-core assets are those not essential to a company’s primary operations. In the UK, companies often divest these assets to streamline operations or raise capital.
National Living Wage (NLW) The NLW is the minimum wage set by the UK government for workers aged 23 and over. Changes to the NLW can impact labour costs, affecting profitability in sectors like hospitality and retail.
Net Investment Income This is income earned from investments, such as dividends and interest, minus related expenses. In the UK, net investment income is a significant metric for funds and individual investors.
Non-Voting Shares Non-voting shares provide ownership in a company without the right to vote on corporate matters. In the UK, these shares are often issued to raise capital while maintaining control with existing shareholders.
Net Foreign Assets (NFA) NFA measures a country’s foreign assets minus its foreign liabilities. In the UK, it is a key economic indicator used to assess the nation’s external financial health.
National Debt National debt is the total amount of money owed by the UK government to creditors. It influences interest rates, inflation, and investment returns, making it a crucial factor for investors.
Net Worth Net worth represents an individual’s or entity’s total assets minus total liabilities. In the UK, high-net-worth individuals (HNWIs) are a key target for wealth managers and financial advisers.
Net Debt Net debt is a company’s total debt minus its cash and cash equivalents. In the UK, this metric is essential for evaluating a firm’s leverage and financial stability.
Non-Deliverable Forward (NDF) An NDF is a derivative contract used to hedge or speculate on currency movements, settled in cash rather than the physical delivery of currency. In the UK, NDFs are common for managing exposure to restricted or volatile currencies.
Net Trading Income Net trading income is the profit derived from trading securities, commodities, or other financial instruments. In the UK, this is a key metric for banks and investment firms.
Nominal GDP Nominal GDP measures the value of all goods and services produced in the UK at current market prices. It is a broad indicator of economic health but does not account for inflation.
Net Interest Margin (NIM) NIM is the difference between the interest income generated by a bank and the interest paid to depositors, expressed as a percentage of assets. In the UK, NIM is a crucial measure of banking profitability.
National Grid Investment Investments in the National Grid focus on the UK’s energy infrastructure, providing steady returns and exposure to renewable energy initiatives.
Net Book Value (NBV) NBV represents the value of an asset as recorded on a company’s balance sheet, after accounting for depreciation. In the UK, this metric is used to assess asset valuations, particularly in real estate and manufacturing.
Non-Gilt Bond Non-gilt bonds are corporate or municipal bonds that are not issued by the UK government. These bonds often offer higher yields than gilts, appealing to income-focused investors.
Net Redemption Net redemption refers to the difference between the value of fund redemptions and new investments. In the UK, high net redemptions may indicate declining investor confidence in a fund.
Nominal Growth Rate The nominal growth rate measures the increase in an economy or investment without adjusting for inflation. In the UK, it is a straightforward indicator of economic expansion or portfolio performance.
Non-Discretionary Account A non-discretionary account requires client approval for all trades. In the UK, this type of account is common among retail investors who want to retain full control over their investments.
Net Unrealised Appreciation (NUA) NUA refers to the increase in the market value of an investment that has not yet been sold. In the UK, this is a critical metric for evaluating the potential gains in a portfolio.
National Insurance Contribution (NIC) NICs are payments made by UK workers and employers to fund state benefits. These contributions can impact disposable income and savings rates, influencing consumer investment behaviour.
Non-Investment Grade Bond These bonds, also known as junk bonds, are rated below investment grade and carry higher risk. In the UK, they appeal to investors seeking high returns but require thorough credit risk analysis.
Net Zero Investments Net zero investments focus on projects or companies that aim to eliminate or offset carbon emissions. In the UK, these are growing rapidly due to government initiatives and investor demand for sustainability.
Non-Tariff Barrier Non-tariff barriers include regulations, standards, or quotas that restrict trade. In the UK, these barriers have become a focus post-Brexit, influencing investments in export-dependent industries.
Nominal Rate of Return The nominal rate of return measures an investment’s earnings without adjusting for inflation. In the UK, this is a common metric for evaluating savings accounts and fixed-income products.
Net Capital Outflows Net capital outflows occur when investments by UK residents in foreign assets exceed foreign investments in the UK. This metric is closely monitored for its impact on currency stability and economic growth.
Non-Tradable Asset Non-tradable assets cannot be bought or sold in public markets. In the UK, examples include private equity holdings, real estate, and intellectual property.
Net Exposure Net exposure is the difference between a portfolio’s long and short positions. In the UK, hedge funds use this metric to balance risk and optimise returns.
Nominal Effective Exchange Rate (NEER) NEER measures the value of the pound against a basket of foreign currencies. It is a critical indicator for UK investors analysing international trade competitiveness.
Net Internal Rate of Return (Net IRR) Net IRR accounts for all cash flows and fees to determine an investment’s profitability. In the UK, it is widely used in private equity and infrastructure projects.
Non-Qualifying Investment These are investments that do not meet the criteria for tax-advantaged accounts like ISAs or pensions. In the UK, non-qualifying investments are subject to standard income and capital gains taxes.
National Infrastructure Pipeline The UK’s National Infrastructure Pipeline outlines planned investments in transport, energy, and digital infrastructure, presenting opportunities for institutional and private investors.
Net Realisable Value (NRV) NRV is the estimated value of an asset after deducting selling costs. In the UK, this is often used to value inventory or distressed property.
Non-Standard Finance (NSF) NSF refers to lending and investment in markets that do not meet traditional criteria, such as payday loans or subprime mortgages. In the UK, this sector offers high-risk, high-reward opportunities.
Net Promoter Score (NPS) NPS measures customer loyalty and satisfaction with a company’s products or services. In the UK, high NPS is correlated with strong financial performance, making it a valuable metric for investors.
Nominal Bond A nominal bond pays fixed interest without adjustment for inflation. In the UK, these are contrasted with index-linked gilts, which adjust for inflation.
Net Operating Income (NOI) NOI measures a property’s income after operating expenses but before taxes and financing costs. In the UK, this is a crucial metric for evaluating commercial real estate investments.
Non-Directional Trading Strategy A non-directional trading strategy seeks to profit regardless of market movement direction. In the UK, these strategies often involve options, arbitrage, or market-neutral hedge funds.
Nominal Rate The nominal rate is the stated interest rate on a financial instrument without accounting for inflation. In the UK, it is commonly used for gilts and corporate bonds to provide a baseline for fixed-income returns.
Net Assets Per Share (NAPS) NAPS represents the net assets of a company divided by its total outstanding shares. In the UK, this metric is often used to evaluate the intrinsic value of investment trusts and REITs.
Non-Bank Financial Institution (NBFI) NBFIs provide financial services without being licensed as banks, such as insurance companies and asset managers. In the UK, they play a crucial role in offering alternatives to traditional banking products.
Net Interest Coverage Ratio This ratio measures a company’s ability to meet interest payments from its earnings. In the UK, it is a critical metric for assessing the creditworthiness of leveraged businesses.
Nominal Anchor A nominal anchor is a monetary policy tool used to maintain price stability, such as targeting inflation rates. In the UK, the Bank of England uses an inflation target of 2% as its anchor.
Net Revenue Net revenue refers to a company’s income after accounting for discounts, allowances, and returns but before deducting expenses. In the UK, it provides insight into the core performance of businesses.
Non-Disclosure Agreement (NDA) An NDA is a legal contract that ensures confidentiality during business negotiations. In the UK, NDAs are standard in M&A and private equity deals to protect sensitive information.
Net Retention Ratio The net retention ratio measures the proportion of revenue retained from existing customers after accounting for churn and upgrades. In the UK, this is a critical metric for evaluating subscription-based companies.
Nominal Supply Shock A nominal supply shock affects the production cost due to changes in monetary variables like wages or interest rates. In the UK, these shocks can significantly impact inflation and corporate profitability.
Net Settlement Net settlement is a process where only the difference between payable and receivable amounts is exchanged between parties. In the UK, this is common in derivatives and securities trading.
Non-Tradeable Government Bonds These bonds are issued by the UK government but cannot be traded in secondary markets. Examples include specific savings bonds issued through NS&I.
Net Earnings Yield Net earnings yield is the ratio of a company’s earnings per share to its market price. In the UK, it is used to compare the attractiveness of equities relative to other investments like bonds.
Nominal Wages Nominal wages are earnings paid to employees without adjustment for inflation. In the UK, trends in nominal wages impact consumer spending and inflationary pressures.
Net Neutrality in Investments This principle refers to a balanced approach where investments are neither significantly biased toward risk nor safety. In the UK, this strategy is common in diversified portfolios managed by wealth advisers.
Non-Cumulative Preferred Shares These shares do not entitle the holder to unpaid dividends if the company omits a dividend payment. In the UK, these shares are less common but may appeal to investors prioritising capital gains over income.
Net Capital Ratio The net capital ratio measures a company’s ability to cover its liabilities with its capital. In the UK, it is used to assess the financial health of banks and insurers.
Nominee Shareholder A nominee shareholder holds shares on behalf of the beneficial owner. In the UK, this arrangement is often used for privacy or administrative purposes in corporate structures.
Net Investment Ratio The net investment ratio compares a company’s capital expenditures to its depreciation. In the UK, this metric highlights whether businesses are growing or maintaining their asset base.
Non-Correlation Investment Strategy This strategy involves investing in assets that do not move in tandem with traditional markets. In the UK, this includes alternatives like infrastructure funds, art, and wine investments.
Nominal Price The nominal price is the stated price of a security at issuance. In the UK, this term is often used in bond markets to distinguish from the market price.
Net Sales Proceeds The net sales proceeds represent the amount received from selling an asset after deducting transaction costs. In the UK, this is a key figure for evaluating real estate and private equity deals.
Non-Current Assets Non-current assets are long-term assets, such as property, plant, and equipment. In the UK, these are critical for evaluating the operational capacity and long-term value of a company.
Net Change Indicator The net change indicator shows the difference in a security’s price or index level over a specific period. In the UK, this is commonly displayed for FTSE indices to highlight market trends.
Nominal Yield Curve The nominal yield curve plots yields of fixed-income securities against their maturities. In the UK, gilts are used to construct this curve, providing insights into interest rate expectations.
Net Working Capital Net working capital is the difference between a company’s current assets and current liabilities. In the UK, this metric is vital for assessing liquidity and short-term financial health.
Nominal Effective Interest Rate The nominal effective interest rate is the actual annual interest rate charged, excluding the effects of compounding. In the UK, this is often used to compare loans or credit products offered by banks.
Net Debt to EBITDA Ratio This ratio compares a company’s net debt to its earnings before interest, taxes, depreciation, and amortisation. In the UK, it is a critical metric for assessing leverage and financial health in sectors like utilities and telecommunications.
Non-Callable Bond A non-callable bond cannot be redeemed by the issuer before its maturity date. In the UK, these bonds are preferred by investors seeking predictable income streams.
Net Gains Net gains represent the profit earned from selling an asset, adjusted for any associated costs. In the UK, net gains are subject to capital gains tax if they exceed the annual tax-free allowance.
Nominal Exchange Rate The nominal exchange rate is the value of one currency relative to another without adjusting for inflation. In the UK, it is a key factor influencing trade competitiveness and investment flows.
Net Dividends Net dividends are the actual amount received by shareholders after deducting withholding taxes. In the UK, dividend income is taxed based on specific thresholds, impacting net returns.
Non-Directional Hedge Fund A non-directional hedge fund seeks to generate returns independent of market movements. In the UK, such funds use strategies like arbitrage or market neutrality to achieve consistent performance.
Net Interest Expense Net interest expense is the difference between interest paid on debt and interest earned on investments. In the UK, this figure is crucial for analysing the cost of financing in corporate accounts.
Nominal Return on Investment (ROI) This is the percentage gain or loss on an investment, excluding adjustments for inflation. In the UK, it is a straightforward measure used to compare the profitability of different investments.
Non-Standard Asset (NSA) NSAs include investments that are not easily traded or valued, such as artwork or unlisted securities. In the UK, these assets require specialised expertise for valuation and management.
Net Economic Value (NEV) NEV assesses a company’s economic worth by considering future cash flows and current assets. In the UK, it is often used in mergers and acquisitions to determine a fair price.
Nominal Disposable Income This is the income available to households after taxes but before adjusting for inflation. In the UK, trends in nominal disposable income influence consumer spending and investment behaviour.
Non-Resident Tax Non-resident tax applies to individuals or entities earning income in the UK but residing elsewhere. This affects foreign investors earning dividends, interest, or rental income from UK assets.
Net Monthly Returns These are the returns generated by an investment each month, net of fees and expenses. In the UK, net monthly returns are a standard metric for assessing mutual fund and portfolio performance.
Nominal Risk-Free Rate This is the theoretical return on a risk-free asset, such as UK government gilts, excluding inflation. It serves as a benchmark for evaluating other investments.
Net Premiums Written This is the total value of insurance premiums written, minus cancellations and refunds. In the UK, it is a critical measure of revenue for insurance companies.
Non-Operating Expenses Non-operating expenses are costs unrelated to a company’s core activities, such as interest on loans or foreign exchange losses. In the UK, these expenses impact net income and financial ratios.
Net Savings Rate The net savings rate measures the proportion of disposable income saved by households. In the UK, this figure influences investment in ISAs, pensions, and other savings products.
Nominal Effective Protection Rate This rate evaluates the impact of tariffs and trade policies on domestic production costs. In the UK, it is relevant for industries affected by post-Brexit trade agreements.
Net Trade Cycle The net trade cycle measures the time it takes for a company to convert inventory into cash from sales. In the UK, this metric is vital for assessing operational efficiency, especially in retail and manufacturing.
Non-Recurring Revenue Non-recurring revenue is income generated from one-off events, such as asset sales or litigation settlements. In the UK, it is excluded from core performance metrics to assess sustainable growth.
Net Exchangeable Value This value represents the potential cash generated if all assets were liquidated. In the UK, it is often used for distressed companies or in insolvency scenarios.
Nominal vs. Real Rates Nominal rates are stated without inflation adjustments, while real rates account for inflation. In the UK, understanding the difference is essential for evaluating investments in gilts and savings accounts.
Net Income Multiplier This metric compares the value of an asset to the income it generates annually. In the UK, it is widely used in real estate to assess the profitability of rental properties.
Non-Qualified Deferred Compensation (NQDC) NQDC plans allow employees to defer a portion of their income to a future date. In the UK, similar schemes are less common but may exist in international corporations operating within the country.
