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Naked option
When you write, or sell, a call option but don't own the underlying instrument, such as a share, the option you're writing is described as naked. Because you collect a premium when you sell the option, you can make a profit if the underlying instrument performs as you expect, and the option isn't exercised. The risk you run, however, is that the option holder will exercise the option, and you'll have to buy the instrument at the market price in order to meet your obligation to sell. If that price has moved in the opposite direction from the one you expected — specifically if it has gone up instead of remaining steady or going down — buying could cost you a substantial amount of money, and you could have a net loss.

NASDAQ
NASDAQ, or the National Association of Securities Dealers Automated Quotation system, is a computerized stock trading network that allows brokers to get price quotations for stocks being traded electronically or sold on the floor of a stock exchange.

Nasdaq Composite Index
This index tracks the prices of all of the securities traded on the Nasdaq Stock Market (Nasdaq), which in one way makes it a broader measure of market activity than the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500-stock Index (S&P 500). On the other hand, since so many computer, biotechnology, and telecommunications companies are listed on the Nasdaq, the movement of the index is heavily influenced by what's happening in those sectors. The index is market capitalization weighted, which means that companies whose market values are higher exert greater influence on the index. Market capitalization, or value, is computed by multiplying the total number of existing shares by the most recent sales price. The index is updated throughout the trading day.

Nasdaq Stock Market (Nasdaq)
The Nasdaq Stock Market is the world's oldest and largest electronic stock market. It has two divisions, the National Market and the Small-Cap Market. The most active stock market in the nation, the Nasdaq lists many emerging companies as well as some industry giants, especially in computers, technology, and telecommunications. Stocks traded on the National Market must meet specific listing criteria for market capitalization and trading activity. Listing requirements for the Small-Cap Market, which specializes in smaller, newer companies, are less stringent.

National Market System (NMS)
The NMS links all the major stock markets in the U.S. and was developed to foster competition among them. Its electronic Intermarket Trading System (ITS) displays current bid and ask prices for stocks on each of those markets so that brokers can execute trades on any market where a stock is listed. Brokers can often get a better price or a faster turnaround on one market than on another, depending on the volume of trading or the size of the trade.

Net asset value (NAV)
The NAV is the rupee value of one unit of a mutual fund. It is calculated by totaling the value of all the fund's holdings and dividing by the number of outstanding units. That means the NAV changes regularly, though day-to-day changes are usually small.

Net change
Each trading day, the difference between the closing price of a stock, bond, or mutual fund, or the last price of a commodity contract, and the closing price on the previous day is reported as net change, sometimes simply as change. When a stock has gained in value, the positive net change is expressed with a plus sign and a number, such as +1, meaning that the price was up 1 rupee from the previous trading day. On days that a stock falls, the negative net change is expressed with a minus sign and a number, such as -1, meaning that the price was a rupee lower.

Net worth
A companies net worth, also known as shareholder's equity, is figured by adding retained earnings, which is the amount left after dividends are paid, to the money in the companies capital accounts, and then subtracting all of its short- and long-term debt. To figure your own net worth, you add the value of the assets you own (securities, personal property, real estate) and then subtract your liabilities, or what you owe in loans and other obligations. If your assets are larger than your liabilities, you have a positive net worth. But if your liabilities outweigh your assets, you have a negative net worth.

New issue
When a share or bond is offered for sale for the first time, it's considered a new issue. New issues can be the result of an initial public offering (IPO), when a private company goes public, or they can be additional, or secondary, offerings from a company that's already public. For example, a public company may sell bonds from time to time to raise capital. Each time a new bond is offered, it's considered a new issue.

New York Stock Exchange (NYSE)
The NYSE is the largest equity exchange in the world. Founded in 1792, it adopted its constitution in 1817 and its current name in 1863. The NYSE has a global market capitalization of over $15 trillion. Common and preferred stock, bonds, warrants, and rights are all traded on the NYSE, which is also known as the Big Board.

New York Stock Exchange Composite Index
This index tracks the market value of all the common stocks listed on the New York Stock Exchange (NYSE). The index is market capitalization weighted, which means that companies with the greatest market value, based on their most recent market prices multiplied by the number of their existing shares, have a greater impact on the movement of the index than companies with fewer shares or lower prices.