Guide to Analysing Companies

NIF
See note issuance facility.
Nikkei Stock Average
A leading index of the tokyo stock exchange (originally
called the Nikkei-Dow Jones Stock Average until it was renamed
in the 1980s). It is an average of the 225 biggest stocks by market
capitalisation quoted on the exchange. 
N
216
NEW YORK STOCK EXCHANGE
02 Essential Finance 10/11/06 2:22 PM Page 216

---

Nil basis
A method of calculating earnings per share which assumes
there is no distribution of profit to shareholders, just the rele-
vant payments of tax.
Nominal price
A quotation for a futures contract during a period when no
trading is actually taking place. A nominal exercise price can
also refer to the balance owed on a bond after deducting the
price for which it can be bought.
Nominee
Someone whose name is used in place of somebody else’s. This
could be either a person or a firm (such as a bank or broker)
in whose name a security or other asset is held. Sometimes
this is to avoid divulging the identity of the underlying owner;
sometimes it is purely for convenience. To ensure greater
secrecy, some Swiss banks will allow depositors to hold
money in the name of a nominee. The nominee passes on the
interest (minus his or her fee) to the ultimate beneficiary. Un-
surprisingly, such accounts are unpopular with regulators trying
to stamp out money laundering and the use of legitimate
banking services to hide illegal transactions.
Non-performing loan
A loan on which interest payments are considerably
overdue. US banks are required to consider loans to be non-per-
forming when no interest has been paid for 90 days or more.
When they pass the 90-day threshold, such loans have to be re-
ported as non-performing in the banks’ accounts.