The Finance Dictionary

This information provides users with thorough and reliable meanings to all the most common, and even uncommon, financial terms

Financial Terms Beginning With The Letter N

Naked call option

See covered vs. uncovered (naked) call.

Naked put option

See covered vs. uncovered (naked) put.

Net Asset Value (NAV)

The net asset value of an investment company is its total assets less its total liabilities. Mutual funds and unit investment trusts (UITs) normally calculate their NAV at the close of each business day, and then all buy and sell orders are processed at the NAV. The NAV for a closed-end fund need not be calculated daily, because its shares trade at market value, not at NAV.

Net assets

Total assets less total liabilities, which equals owners' equity

Net capital loss

See capital gain or loss.

Net income

The part of income remaining after all expenses and taxes have been paid. Also called net profit.

Net income (for tax purposes)

See taxable income.

Net tangible assets

Net assets less intangible assets.

No par value

When shares of a corporation have no stated face value, they are said to be no par value shares.

No-load fund

This type of mutual fund does not charge sales commissions, but trailer fees are paid annually by the fund to the advisor, broker or dealer where you hold your funds. A no-load fund may have a higher management expense ratio (MER), to make up for the lack of sales charges. See also front-end load fund and back-end load fund.

Nominal interest rate

See interest rates.

Non-arm's length

See arm's length.

Non-capital loss

A non-capital loss includes unused losses from office, employment, business or property, and unused allowable business investment losses (ABIL).

Non-capital losses can be carried back 3 years, or carried forward 7, 10 or 20 years.

The carry-forward periods are:

  • for taxation years ending March 22, 2004 or earlier, 7 years
  • for taxation years ending after March 22, 2004, 10 years.
  • for taxation years ending after 2005, 20 years.

For further information see the CRA web page Non-capital losses of other years.

See also capital gain or loss.


A non-cumulative preferred dividend does not accrue or accumulate if unpaid.

Non-refundable tax credit

A non-refundable tax credit can only be used to reduce federal or provincial/territorial taxes to zero. It will not generate a payment from the government if no taxes are payable.

The tax rate used to calculate non-refundable tax credit is the lowest federal tax rate, and for provincial/territorial tax credits is the lowest provincial/territorial tax rate, except for Quebec. Quebec residents calculate their non-refundable tax credits at a rate of 20%.

The unused portions of some non-refundable tax credits can be transferred to another taxpayer. Some non-refundable tax credits can be used by either spouse.