Nasdaq:

Created in 1971, the Nasdaq was the world’s first electronic stock market. The Nasdaq is a computerized system that facilitates trading and provides price quotations on some 5,000 of the more actively traded over-the-counter stocks.

Nasdaq Composite Index:

A market-capitalization weighted index of the more than 3,000 common equities listed on the Nasdaq stock exchange. The types of securities in the index include American depository receipts, common stocks, real estate investment trusts (REITs) and tracking stocks. The index includes all Nasdaq listed stocks that are not derivatives, preferred shares, funds, exchange-traded funds (ETFs) or debentures.

Negative Carry:

A situation in which the cost of financing a securities or financial futures position exceeds the yield earned.

Net Investment:

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:

Net Investment = Capital Expenditures – Non-Cash Depreciation

Netting:

1. Settling mutual obligations at the net value of a contract as opposed to its gross dollar value.

2. Reducing the transfer of funds between subsidiaries to a net amount.

New York Stock Exchange (NYSE):

A corporation, operated by a board of directors, responsible for listing securities, setting policies and supervising the stock exchange and its member activities. The NYSE also oversees the transfer of members’ seats on the Exchange, judging whether a potential applicant is qualified to be a specialist.

No-load Fund:

A mutual fund whose shares are sold without a commission or sales charge. The reason for this is that the shares are distributed directly by the investment company, instead of going through a secondary party. This is the opposite of a load fund, which charges a commission upon the initial purchase at the time of sale.

Normalized Earnings:

1. Earnings adjusted for cyclical ups and downs in the economy.

2. On the balance sheet, earnings adjusted to remove unusual or one-time influences.