Glossary — N
Now let us navigate the N's of investing!
Non-Farm Payroll
Imagine a big employment party, where companies hire and fire people. The government takes a snapshot of this party every month to see how many new jobs were created and how many people are working. Non-Farm Payrolls is like the party's guest list:
- It shows how many new jobs were added (guests arrived)
- It shows how many people are already working (guests already there)
- It excludes farm workers (they are at a different party)
This report helps us understand the economy's health and whether the party is growing or slowing down! So, when you hear about Non-Farm Payrolls, think of it as a snapshot of the employment party, showing us how many new jobs were created and how many people are working! Nonfarm Payroll: What It Means, and Why It's Important
Nasdaq
The Nasdaq index fund is a financial instrument that tracks the performance of the Nasdaq Composite or Nasdaq-100 Index. It includes some of the world's largest technology companies such as:
- Apple
- Amazon
- Microsoft.
The goal of the Nasdaq index fund is to match the performance of the underlying index, allowing investors to benefit from the growth of technology sector by buying or selling the stock. What Nasdaq Is, History, and Financial Performance
Net-Worth
Your Net Worth is the total value of everything you own (Assets) minus everything you owe (Liabilities). So it is basically the money you have left over after paying all the bills and important stuff! You consider it as an indicator of your financial health:
- Assets are what you own, such as, cash, investments, property, and other valuables.
- Liabilities are what you owe, such as, debts, loans, credit card balances, and other financial obligations.
Net Worth = Assets - Liabilities For example, if you have:
- Assets: R100,000
- Liabilities: R50,000
- Your Net Worth would be: R50,000 (R100,000 - R50,000)
It is a simple way to see if you are building wealth or not. Net Worth: What It Is and How to Calculate It
Networking
Networking is like connecting dots between people, devices, or systems to share resources, information, or services that benefits all parties. It is like a spider web where each strand (connection) helps everything stay linked and talk to each other. It means connecting with others in your industry or community to build relationships, share knowledge, and help each other achieve goals. It is like weaving a web of contacts to support and learn from each other. That is networking in a nutshell! Networking: What It Is and How to Do It Successfully That is all for now, but we are not done! There will be more terms starting with `N' in no time! Share this post: Categories STIOSTM: Terminology Sign up for blog updates! Join my email list to receive updates and information. Email address
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