Negotiable Instrument

See " Negotiable."

Negotiable Paper

See " Negotiable."

Negotiable Securities

First read " Negotiable," after an understanding of which "negotiable securities" may be defined by stating that they are all forms of commercial paper, bills of exchange, drafts, municipal, Government and corporation bonds, and, in fact, anything that may be termed an investment security which has the requisite attributes of negotiability.


To sell, dispose of, transfer, barter, accomplish a transaction. To "negotiate a loan;" to make a loan, borrow money.

An instrument is "negotiated" when it is transferred from one party to another in such a manner as to constitute the person to whom transfer is made the holder thereof.


A thing is said to be "net" when all possible deductions have been made from its totality, and it is at its lowest terms. This is more specifically set forth under " Net Earnings."

Net Avails

As used in the discounting of a note, it is the amount which the borrower obtains after deducting the " discount." (See "Discount.")

Net Cash

Cash (payment) on delivery, as distinguished from "cash," which in the mercantile world is often taken to mean payment in a short time, generally ten days. " Net cash," permits of no discount being taken from the face of the bill, as is often allowed when goods are sold for " cash." If the term were used, "net cash ten days," it would be understood that the payment was to be made within ten days, but no discount was to be taken from the bill.

Net Debt

See " Net Indebtedness."

Net Deposits

The "net deposits" of a national bank upon which to figure the "reserve" (see that subject) requirements, is obtained by deducting the checks which a bank holds drawn against other banks in the same place, exchanges for clearing-house and national bank notes.

Net Deposits Of National Banks

The total deposits in all these banks, less the deposits of one bank in another, and any other duplications, so that no deposit will be counted more than once.

Net Earnings

The divisible income applicable to interest upon indebtedness of all classes, sinking fund, and dividends upon stock of a corporation or business industry for any stated period of time. The method of bookkeeping differs in various corporations, and unless specially noted, so that the investor may not be deceived, such items as taxes and insurance should be deducted before the amount of "net earnings" is derived. It is generally conceded proper to deduct such items and give the "net earnings" as a divisible income as noted above.