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HMRC internal manual

VAT Finance Manual

Glossary of terms: N

Negotiable Instrument Any instrument that satisfies the three tests of negotiability. These are:
  • the property in the instrument passes by mere delivery or by endorsement and delivery;
  • a transferee taking the instrument in good faith etc. with no notice of any defect in the title of the transferor obtains an ‘indefeasible title against all the world’, and may sue on the instrument in his own name; and
  • no notice of the transfer need be given to the person liable on the instrument.    
      Net Asset Value The value of a company after all debts have been paid, expressed in pence per share.
      New Issue A company coming to the market for the first time or issuing extra shares.
      New time Stock broking term used to refer to the ‘account’ about to start, i.e. not the current account period.
      Nil Value Shares Shares newly issued by a company. These shares can usually be transferred on renounceable documents.
      Nil Paid A new issue of shares, usually as the result of a rights issue, on which no payment has yet been made, often evidenced by an allotment letter.
      Nominee Name Name in which a security is registered and held in trust on behalf of the beneficial owner.
      Nominated Adviser A London Stock Exchange approved adviser for AIM companies.
      Normal Market Size (NMS) The SEAQ classification system that replaced the old alpha, beta, gamma system. NMS is a value expressed as a number of shares used to calculate the minimum quote size for each security.
      Nostro A bank’s own current account with another bank, i.e. not a client’s account.
      Note Issuance Facility (NIF) A facility provided by banks to companies wishing to raise capital by issuing short term securities or ‘notes’ (see Sterling Commercial Paper). The bank acts as a marketing vehicle for the company, finding buyers for the notes and passing the proceeds to the company. If no buyers are forthcoming, part of the facility is that the bank will buy the notes itself.
      Nominee Company A company which holds investments on behalf of clients, being the legal owner but not the beneficial owner.
      Novation The substitution of a new obligation or debt for an old one by mutual agreement. This may be a new arrangement between the same parties, or the substitution of a new debtor for the old one.