- Browse Related Terms: End-use, Establishments, NAICS, North American Industry Classification System, North American Industry Classification System (NAICS), Primary product, SIC, SITC, Standard Industrial Classification, Standard Industrial Classification (SIC), Standard International Trade Classification, Standard International Trade Classification (SITC)
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When you write, or sell, a call option but don't own the underlying instrument, such as a stock in the case of an equity option, the option is described as naked.
Similarly, you write a naked put if you don't have enough cash on hand or in liquid investments to purchase the underlying instrument.
Because you collect a premium when you sell the option, you may 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. In the case of a call, you'll then have to buy the instrument at the market price in order to meet your obligation to sell. Or, if it's a put, you'll have to come up with the cash to purchase the instrument.
If that price of the underlying has moved in the opposite direction from the one you expected, meeting your obligation could result in a substantial net loss. Because of this risk, your brokerage firm may limit your right to write naked options or require that you write them in a margin account.
- Browse Related Terms: assignment, At-the-money, Automatic exercise, Call, Call option, Covered option, Exercise, Go short, Green shoe clause, In-the-money, Incentive stock option (ISO), Long position, Naked option, offset, Option, Option premium, Put option, Short position, Stock option, Strike price, Uncovered option, Writer
All > Business > Finance > Insurance > Auto Insurance
An endorsement that provides that a policy does not cover accidents when a specifically named person is the driver.
- Browse Related Terms: Appraiser, Bodily injury (BI), Comparative fault, Comparative Negligence Law, Liability insurance, Named driver exclusion, Named driver policy, Negligence, Negligence/Negligent, Non-owners policy, Underinsured Motorist (UIM), Underinsured Motorist Bodily Injury (UIM) Coverage, Underinsured Motorist Bodily Injury Coverage (UIM), Uninsured Motorist (UM), Uninsured Motorist Bodily Injury (UM) Coverage, Uninsured Motorist Property Damage Insurance (UMPD), Uninsured motorist protection, Uninsured/underinsured motorist (UM/UIM) coverage, Unsatisfied judgment fund
All > Business > Finance > Insurance > Auto Insurance
An automobile insurance policy that doesn't provide coverage for an individual residing in a named insured ’s household specifically unless the individual is named on the policy. The term includes an automobile insurance policy that has been endorsed to provide coverage only for drivers specifically named on the policy.
- Browse Related Terms: Appraiser, Bodily injury (BI), Comparative fault, Comparative Negligence Law, Liability insurance, Named driver exclusion, Named driver policy, Negligence, Negligence/Negligent, Non-owners policy, Underinsured Motorist (UIM), Underinsured Motorist Bodily Injury (UIM) Coverage, Underinsured Motorist Bodily Injury Coverage (UIM), Uninsured Motorist (UM), Uninsured Motorist Bodily Injury (UM) Coverage, Uninsured Motorist Property Damage Insurance (UMPD), Uninsured motorist protection, Uninsured/underinsured motorist (UM/UIM) coverage, Unsatisfied judgment fund
All > Business > Finance > Insurance > Homeowners Insurance
Specific events covered by a policy, such as fire, windstorm, and theft.
- Browse Related Terms: Builders Risk, Debris removal, Exclusions, HO Forms, Liability, Named perils, Occurrence, Peril, Proof of loss, Residual market, Sewer Back-up and Sump Pump Overflow Coverage
All > Business > Finance > Personal Finance
A named perils policy is a standard homeowners insurance policy that offers limited protection for damage from fire and theft and other hazards specified in the policy.
- Browse Related Terms: Car insurance, Catastrophic illness insurance, claim, Credit Disability Insurance (CDI), Deductible, Exclusion, Homeowner's insurance, Indemnity insurance, Insurance (Hazard), Named perils policy, Participating policy, Policyholder or policy owner, Pre-existing Condition, Preferred Risk Policy (PRP), Rider
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NASD is the largest self-regulatory organization (SRO) in the United States.
Formerly known as the National Association of Securities Dealers, NASD regulates broker-dealer firms and licenses registered representatives - better known as stockbrokers - who make a business of trading securities.
In addition, NASD regulates trading in stocks, mutual funds, variable annuities, corporate bonds, and futures and options contracts on securities, and acts as regulator for a number of securities exchanges, NASD also reviews materials that investment companies provide to their clients and prospective clients to ensure those materials comply with the relevant guidelines.
Through its BrokerCheck database, NASD provides a resource for investors to check the credentials of people and firms with whom they're considering working. The NASD website also provides investor education and alerts on current issues of importance to investors.
Finally, NASD also resolves disputes between broker-dealers and their clients, through either mediation or arbitration. NASD disciplines firms and individuals who violate the rules.
- Browse Related Terms: agent, Broker, NASD, registered representative, Series 6, Series 63, Series 7, Suitability rules
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NASDAQ is the world's oldest electronic stock market and the largest stock exchange in the United States. It has no central trading location or exchange floor.
Instead it uses a fully automated, open market, multiple dealer trading system, with many market makers competing to handle transactions in each individual stock.
NASDAQ handles more initial public offerings than any other US exchange. It lists many emerging companies as well as industry giants, especially in biotechnology, communications, financial services, media, retail, technology, and transportation.
- Browse Related Terms: Bourse, Currency trading, Cyber Crime, NASDAQ, NASDAQ Stock Market, real time, Stock market, Wire house
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The NASDAQ Composite index tracks the prices of all of the securities traded on the NASDAQ Stock Market.
That 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, many computer, biotechnology, and telecommunications companies are listed on the NASDAQ. So 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.
So, for example, if a stock with 1 million shares increases $3 in value, it has a greater impact on the changing value of the index than a stock that also increases $3 but has only 500,000 shares.
- Browse Related Terms: Average, Breakout, Dogs of the Dow, Dow Jones 65 Composite Average, Dow Jones Industrial Average (DJIA), Dow Jones Transportation Average, Dow Jones Utility Average, Dow theory, Efficient market theory, Logarithmic scale, NASDAQ Composite Index, New York Stock Exchange Composite Index, Qubes, Value Line Composite Index, volume, Weighted stock index
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The NASDAQ Stock Market is the world's oldest and largest electronic stock market and is now a national securities exchange and an independent self-regulatory organization (SRO).
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.
- Browse Related Terms: Bourse, Currency trading, Cyber Crime, NASDAQ, NASDAQ Stock Market, real time, Stock market, Wire house
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NASDAQ is a computerized stock trading network that allows brokers to access price quotations for stocks being traded electronically or sold on the floor of a stock exchange.
- Browse Related Terms: Electronic communications network (ECN), Fourth market, Instinet, National Association of Securities Dealers Automated Quotation System (NASDAQ), NYSE Arca, Off-board, Secondary market, Third market
A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name.
Office of the Comptroller of the Currency, U.S. Department of the Treasury - Cite This Source - This DefinitionA bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name.
- Browse Related Terms: Bank, branch, foreign bank, connecticut bank, connecticut credit union, Credit Union, Enforcement Action, Federal Deposit Insurance Corporation (FDIC), Federal Reserve System, Financial Regulatory Agency, foreign banks with state branches, Freedom of Information Act (FOIA), Insured Deposits, National Bank, National Bank Examiner, National Credit Union Administration (NCUA), Operating Subsidiary, uninsured bank
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All banks in the United States are chartered by either a state government or the federal government. Federally chartered banks, called national banks, are overseen by the Comptroller of the Currency of the US Department of the Treasury.
All national banks are members of the Federal Reserve System and deposits are insured by the Federal Deposit Insurance Corporation (FDIC).
The dual banking system of federal- and state-chartered banks can be traced to the National Banking Act of 1863. The act created the new federal bank system in an attempt to impose order on what had been a chaotic situation. State banks have survived, however, and the two banking systems co-exist.
- Browse Related Terms: Check hold, Checking account, Commercial bank, Comptroller of the Currency, Federal Deposit Insurance Corporation (FDIC), Federal funds, Federal Reserve Fedwire, Federal Reserve System, Financial institution, Loose credit, Mutual company, National Bank, Nonbank banks, Open-market operations, Regulation D, Reserve requirement
An employee of the Comptroller of the Currency whose function is to examine national banks periodically to determine the financial position of a bank and the security of its deposits. The examiner also verifies that the bank maintains procedures consistent with Federal banking laws and regulations.
An employee of the Comptroller of the Currency whose function is to examine national banks periodically to determine the financial position of a bank and the security of its deposits. The examiner also verifies that the bank maintains procedures consistent with Federal banking laws and regulations.
Office of the Comptroller of the Currency, U.S. Department of the Treasury - Cite This Source - This Definition- Browse Related Terms: Bank, branch, foreign bank, connecticut bank, connecticut credit union, Credit Union, Enforcement Action, Federal Deposit Insurance Corporation (FDIC), Federal Reserve System, Financial Regulatory Agency, foreign banks with state branches, Freedom of Information Act (FOIA), Insured Deposits, National Bank, National Bank Examiner, National Credit Union Administration (NCUA), Operating Subsidiary, uninsured bank
All > Business > Real Estate > Superfund
The National Oil and Hazardous Substances Pollution Contingency Plan, more commonly called the National Contingency Plan (NCP), is the federal government's blueprint for responding to both oil spills and hazardous substance releases. The National Contingency Plan is the result of our country's efforts to develop a national response capability and promote overall coordination among hierarchy of responders and contingency plans.
- Browse Related Terms: Clean Air Act (CAA), Clean Water Act (CWA), Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), Emergency Response (ER), Emergency Response Notification System (ERNS), Environmental Response Team (ERT), National Contingency Plan (NCP), Oil Pollution Act (OPA), Potentially Responsible Parties (PRP), Spill Prevention, Control and Countermeasures (SPCC), Underground Storage Tank (UST)
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Currently, there are three companies that maintain national credit - reporting databases. These are Equifax, Experian, and Trans Union, referred to as Credit Bureaus.
- Browse Related Terms: Capital Gain, Credit bureau, Credit Repair Companies, Credit Union, Equal Credit Opportunity Act, Equal Credit Opportunity Act (ECOA), Fair Credit Reporting Act, Fair Housing Act, Merged Credit Report, National Credit Repositories
The Federal regulatory agency that charters and supervises Federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of Federal credit unions.)
Office of the Comptroller of the Currency, U.S. Department of the Treasury - Cite This Source - This DefinitionThe Federal regulatory agency that charters and supervises Federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of Federal credit unions.)
- Browse Related Terms: Bank, branch, foreign bank, connecticut bank, connecticut credit union, Credit Union, Enforcement Action, Federal Deposit Insurance Corporation (FDIC), Federal Reserve System, Financial Regulatory Agency, foreign banks with state branches, Freedom of Information Act (FOIA), Insured Deposits, National Bank, National Bank Examiner, National Credit Union Administration (NCUA), Operating Subsidiary, uninsured bank
All > Business > Finance > Personal Finance
The Federal regulatory agency that charters and supervises Federal credit unions. NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federally insured credit unions (both Federal credit unions and state-chartered credit unions.)
The National Credit Union Administration (NCUA) is an independent federal agency that authorizes the establishment and oversees the administration of most federal- and state-chartered credit unions in the United States.
The National Credit Union Share Insurance Fund arm of the agency insures credit union deposits, just as the Federal Deposit Insurance Corporation (FDIC) does bank deposits.
NCUA is funded by member credit unions and is backed by the full faith and credit of the federal government.
- Browse Related Terms: Charter Number, European Central Bank (ECB), Federal Credit Union, Federal Credit Union Act, Insured Shares, National Credit Union Administration (NCUA), Over Limit, State Banking Department (also State Supervisory Authority), State Chartered Credit Union
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The total value of all outstanding Treasury bills, notes, and bonds that the federal government owes investors is referred to as the national debt.
The government holds some of this debt itself, in accounts such as the Social Security, Medicare, Unemployment Insurance, and Highway, Airport and Airway Trust Funds. The rest is held by individual and institutional investors, both domestic and international, or by overseas governments.
There is a debt ceiling imposed by Congress, but it is typically raised when outstanding debt approaches that level.
Interest on the national debt is a major item in the federal budget, but the national debt is not the same as the federal budget deficit. The deficit is the amount by which federal spending exceeds federal income in a fiscal year.
- Browse Related Terms: Back-up withholding, Custodial account, Estate, Estate tax, Gift tax, Income, Income in respect of a decedent, Income stock, National debt, Qualified domestic trust (QDOT), Revocable trust, Uniform Gifts to Minors Act (UGMA), Uniform Transfers to Minors Act (UTMA)
The program of flood insurance coverage and floodplain management administered under the Flood Disaster Protection Act (FDPA or Act) and applicable Federal regulations found in Title 44 of the Code of Federal Regulations, Subchapter B.
Office of the Comptroller of the Currency, U.S. Department of the Treasury - Cite This Source - This Definition- Browse Related Terms: Cease and Desist Letter, Escrow Funds, Federal Emergency Management Agency (FEMA), flood insurance, Flood Plain, Mobile home, National Flood Insurance Program (NFIP), Participating Community, Wire transfer
All > Business > Finance > Insurance > Flood Insurance
A federal program enabling property owners in participating communities to purchase insurance protection against losses from flooding. This insurance is designed to provide an insurance alternative to disaster assistance to meet the escalating costs of repairing damage to buildings and their contents caused by floods.
- Browse Related Terms: act, Community, Community Rating System (CRS), Emergency Program, Federal Emergency Management Agency (FEMA), Floodplain Management, Mitigation Division, National Flood Insurance Program (NFIP), National Flood Insurance Reform Act (NFIRA), Participating Community, Regular Program
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The program of flood insurance coverage and floodplain management administered under the Flood Disaster Protection Act (FDPA or Act) and applicable Federal regulations found in Title 44 of the Code of Federal Regulations, Subchapter B.
- Browse Related Terms: Federal Emergency Management Agency (FEMA), flood insurance, Flood Plain, living will, Medicaid, National Flood Insurance Program (NFIP), Participating Community, Regular Program Community, Special Flood Hazard Area (SFHA)
All > Business > Finance > Insurance > Flood Insurance
The purpose of the National Flood Insurance Reform Act of 1994 is to improve the financial condition of the NFIP and reduce federal expenditures for disaster assistance to flood-damaged properties. The act affects every part of NFIP, insurance, mapping and floodplain management. NFIRA also gives lenders tools with which to enforce requirements for flood insurance coverage mandated under the Flood Disaster Protection Act of 1973.
- Browse Related Terms: act, Community, Community Rating System (CRS), Emergency Program, Federal Emergency Management Agency (FEMA), Floodplain Management, Mitigation Division, National Flood Insurance Program (NFIP), National Flood Insurance Reform Act (NFIRA), Participating Community, Regular Program