Net loss
When a company spends more money than it earns, it has a net loss. When a company’s total expenses are higher than a company’s income or revenue, they make a loss. In business, a net loss means a company isn’t making enough profit to cover their expenses. When a company in growth reinvests their profit in the business, they may report a net loss. If net losses continue and a company is unable to make a profit, this may indicate that the business is in trouble.
Net asset value, or NAV
Net Asset Value, or NAV, is the value of the shares in a fund, such as an ETF or a mutual fund. NAV is calculated at the end of each trading day, as:
NAV = total asset value - total liability / total # shares outstanding
NAV as a financial metric helps investors understand the fund’s value and performance.
Nasdaq
The Nasdaq is a US share market that formed in 1971 and has been entirely electronic from day one. Most tech companies are listed on the Nasdaq. This includes Apple, Facebook, Microsoft, Amazon, Google, Tesla and NVIDIA. Like the NYSE, the Nasdaq is a public company, Nasdaq OMX Group (NDAQ). Learn more about the Nasdaq.
NYSE, or New York Stock Exchange
The New York Stock Exchange (NYSE) dates back to 1792 and is the world’s largest share market. It lists many blue chip companies and global brands, including American Express, Coca-Cola, Disney, IBM, and Johnson & Johnson. The total value of the companies listed on it is higher than the Nasdaq, Tokyo and London share markets combined. Like the Nasdaq, the NYSE is owned by a public company, Intercontinental Exchange (ICE). Learn about the NYSE.
