What does it mean? NACH, commonly known as the National Automated Clearing House, is a centralised electronic payment or transaction processing system by the NPCI (National Payments Corporation of India). The system was established for banks, governments and financial institutions to easily manage cumbersome interbank payments, utility bills, SIPs, premiums, donations, credit card bills, dividends …
Post Type Archives: Glossary
National Stock Exchange (NSE)
What is NSE? The National Stock Exchange (NSE) is one of India’s largest financial market exchanges, operating from Mumbai (Maharashtra). It offers investors a platform for trading, settlement and clearing services. It is also India’s first stock exchange to offer electronic trading facilities. Points to Remember How does the National Stock Exchange work? The stock …
Net Asset Value
Net asset value or NAV refers to the market value of a fund’s assets less its liabilities per unit. The NAV helps an investor determine whether the fund is undervalued or overvalued. It is calculated at the end of every trading day on the basis of the closing market prices of the investment’s portfolio. Here …
Net Book Value
Net book value is the value of assets on a firm’s balance sheet. It is also called the net asset value and is computed by considering the original cost of the asset minus its depreciation, depletion and amortisation. Net book value is typically used to display an enterprise’s financial health.
Net Cash
You can understand the net cash definition by seeing how it is calculated: Net cash = Total liabilities – Gross cash So, if you are wondering what is net cash, it refers to the cash flow of a company and its ability to meet its obligations once all liabilities are deducted from the total cash it …
Net Profit Margin
Net profit margin is a measure of a company’s profitability, calculated as the ratio of net profit (after all expenses and taxes) to total earnings. It indicates the percentage of revenue that remains as profit after all operational and other expenses are deducted. Thus, you may use this figure to assess a company’s efficiency of …
Net Worth Meaning
You can understand your or a company’s financial strength by calculating net worth. The net worth definition is pretty simple: it is the total value of assets subtracted from the total liabilities. Here, assets refer to cash in your bank accounts, properties and other assets (like cars or gold) that you own or investments that …
Nominal
Nominal refers to a value that is not adjusted for inflation or other factors. It represents the actual, current value of an asset or liability without considering changes in purchasing power over time.For example, a nominal salary may be stated as ₹50,000 per month without accounting for inflation or cost of living adjustments.