NASD (National Association of Securities Dealers)

(USA) The national organisation of the USA securities industry. Through a subsidiary, The Nasdaq Stock Market Inc., it operates stock exchanges.

NASD Regulation

(USA) A self-regulatory organisation that has substantial responsibility for the regulation of broker/dealers, as well as the operation of the Nasdaq markets. Originally part of the NASD but now in the process of being separated.

Nasdaq Bulletin Board

See ‘Nasdaq Stock Market’ and ‘OTC Bulletin Board’.

Nasdaq Europe

Nasdaq Europe (formerly EASDAQ) is a pan-European stock market based in Brussels. Modelled on Nasdaq in the US, Nasdaq Europe is screen-based (it does not have a trading floor) and quote driven. Nasdaq Europe allows for dual listings, providing companies with access to a broader base of international investors than they may be able to access in their domestic market. Nasdaq acquired a majority interest in EASDAQ in 2001, in connection with which the exchange was re-branded as Nasdaq Europe.

Nasdaq National Market (formerly NASDAQ NMS)

The larger and higher quality of the two markets administered by The Nasdaq Stock Market, Inc. The Nasdaq National Market is now the second largest stock market in the world in terms of volume of shares traded.

Nasdaq SmallCap Market

A stock market for smaller companies that cannot satisfy the listing requirements of the Nasdaq National Market.

Nasdaq Stock Market

The Nasdaq Stock Market (based in New York) has two tiers in the USA, the Nasdaq National Market and the Nasdaq SmallCap Market. Each tier has its own set of financial requirements that a company must meet to list its securities. Nasdaq also operates the OTC Bulletin Board, which is scheduled to be replaced by the Bulletin Board Exchange, or BBX, in 2003. The Nasdaq markets are not physical stock exchanges in the traditional sense and do not have an exchange floor, but instead use electronic trading and support systems. In 1998, Nasdaq and the American Stock Exchange combined into one corporate organisation: The Nasdaq-Amex Market Group. Outside the USA, Nasdaq operates the Nasdaq Canada, Nasdaq Europe and Nasdaq Japan exchanges.

Nasdaq-100

An index based on the shares of 100 of the largest companies traded on the Nasdaq National Market. See ‘Index’ and ‘Nasdaq National Market’.

Nasdaq-Amex Market Group

In 1998, Nasdaq and the American Stock Exchange combined into one corporate organisation: The Nasdaq-Amex Market Group.

Net Proceeds

The amount received by an issuer from the offering of securities, after deduction of expenses and underwriting discounts and commissions associated with the offering.

Neuer Market

The Neuer Markt (based in Frankfurt, Germany) was established in March 1997 and is a trading segment of Deutsche B?rse AG dedicated to high growth companies.

New Issue

Securities being offered to the public for the first time. See ‘Initial Public Offering’.

No-Action Letter

(USA) A procedure where private parties can write to the SEC staff and request an interpretation of how particular aspects of the securities laws apply to their factual situation. The SEC’s response takes the form of a letter indicating that the SEC staff will or will not recommend that the SEC take any enforcement action if the parties proceed as described. This process is not typically formalised in other markets, but it is common for regulatory authorities to be asked for ‘clarification’.

Nominated Advisor or NOMAD

The advisor to an issuer on AIM with delegated responsibility for compliance with the AIM rules.

Nominated Broker

The broker to an issuer on AIM, often also filling the role of the Nominated Advisor.

Nominee Name

See ‘Street Name’

Non-accountable Expense Allowance

See ‘Expense Allowance’.

Non-qualified Stock Options

(USA) Stock options that do not qualify for special tax treatment. Accordingly, there are no limitations on the exercise price, person to whom granted, etc. In the USA, the option holder has no tax at the time of grant, but will have ordinary taxable income at the time of exercise equal to the difference between the exercise price on the date of option exercise and fair market value on that date. The company generally may take a deduction at the same point in an equal amount if the option was issued as compensation. The taxation regime in other countries is often different from this, but non-qualified options are increasingly being used as part of executive remuneration packages. See ‘Incentive Stock Options or ISOs’ for comparison.

Nouveau March?

Le Nouveau March? was established in 1996 by the Paris Bourse and is a market dedicated to innovative companies with high-growth potential. It is managed by EURONEXT.

Novation

The substitution of a new contract for an old one; or the substitution of one party in a contract with another party. Also, the replacement of an existing debt or obligation with a new one.

Nuovo Mercato

Nuovo Mercato was established in 1999 by the Borsa Italiana in Milan and is a market dedicated to innovative companies with high-growth potential.

NYSE (New York Stock Exchange)

The New York Stock Exchange, located in New York City. It is the world’s largest stock market by market capitalisation.