DEFINITION of 'National Association of Investors Corp. - NAIC'

The National Association of Investors Corp. is a nonprofit organization dedicated to providing investing education. The association is based in Madison Heights, Mich., and is composed of investing clubs along with individual investors from around the United States.

BREAKING DOWN 'National Association of Investors Corp. - NAIC'

The National Association of Investors Corp. (NAIC), also known as BetterInvesting, is a Michigan-based 501(c)(3) nonprofit organization whose aim is to teach individuals how to become successful long-term investors. The NAIC is an umbrella organization that had about 4,000 member investment clubs and approximately 40,000 individual members at the end of 2015. The original name of the NAIC was the National Association of Investment Clubs.

The National Association of Investors Corp.’s member magazine is called BetterInvesting, and it became the branded name of the association in 2004. The organization was founded in 1951 when five investment clubs formed the national association. Its mission is to educate individuals on the benefits of long-term investing in common stocks. With the popularity of 401(k)s and other defined-contribution retirement plans, education regarding stock and bond mutual funds was added.

Depending on their membership level, members have access to online tools for determining whether a stock is that of a quality growth company and is selling at a price that will provide sufficient potential return. Members also receive educational webinars, First Cut stock studies contributed by the BetterInvesting community, digital and print editions of BetterInvesting Magazine, local chapter support, and other products and services.

National Association of Investors Corp. Investment Principles

The National Association of Investors Corp. stresses four principles for successful, long-term investing:

  • Invest regularly, regardless of market conditions;
  • Reinvest all earnings;
  • Invest in growth companies (and growth mutual funds); and
  • Diversify to reduce risk.

The heart of the National Association of Investors Corp. Investment approach to investing is the third principle — investing in growth companies. The primary tool to evaluate common stocks is a two-page form with a semi-log graph on the front called the Stock Selection Guide (SSG). The SSG dates to the founding of the organization and was created by George A. Nicholson. The SSG displays a company's 10-year sales and earnings per share history, pretax profit margins and return on equity; five-year annual high and low price-earnings ratios and other important information meant to answer two questions: Is this a well-managed company? Is the stock selling at a reasonable price? The last principle was added and emphasized in the 1980s and '90s.

  1. American Accounting Association ...

    The American Accounting Association (AAA) is an organization ...
  2. Nonprofit Organization

    A nonprofit organization is a business entity that pays no income ...
  3. The Advertising Club of New York

    The Advertising Club of New York is an organization that focuses ...
  4. Savings Club

    An account called a savings club requires regular deposits and ...
  5. Bank Card Association

    A bank card association is an organization that licenses bank ...
  6. Member Payment Dependent Note

    A member payment dependent note is a type of note that is issued ...
Related Articles
  1. Taxes

    5 steps to forming a tax-exempt nonprofit corporation

    Learn here the challenges of forming and operating an official nonprofit organization.
  2. Insights

    The Pros and Cons of Being a Nonprofit

    Organizations face tradeoffs when choosing between becoming a tax-exempt nonprofit or for-profit business. Here are some of the issues to be considered.
  3. Taxes

    What IRS Form 1023 Is Used For

    To be treated as a tax-exempt organization, start by filling out this form.
  4. Financial Advisor

    Where to Find Non-Profit Finance Jobs

    The non-profit sector offers a stable selection of jobs for those who seek other types of fulfillment from their jobs than just purely financial.
  5. Managing Wealth

    When It Pays to Join a Golf Club

    If you play enough golf, it might just be time to consider joining a golf club.
  6. Taxes

    The Top Nonprofit Organizations

    Did you know basketball and volleyball were invented by instructors at a charity?
  7. Managing Wealth

    How ‘Small’ Is a Small Business: The Statistics

    Doing the math will help you determine if you qualify as a small business and when your business gets too big to be small. Turn to the SBA for help.
  8. Managing Wealth

    How Nonprofits And Commercial Groups Can Help The Economy

    As the White House Summer Jobs Initiative takes effect, we look at the benefits of collaboration between for and nonprofit ventures.
  9. Personal Finance

    Buyers Clubs: Will You Really Save?

    Joining a buyers club can save you a few dollars, but there are a few other considerations you should take into account.
  10. Managing Wealth

    Five of the Best Yacht Clubs in Seattle

    Seattle doesn’t have a year-round sailing environment, but there are lots of opportunities for boating enthusiasts, from modestly priced to high-end clubs.
  1. What are the benefits of an investment club and how can I find one?

    An investment club is a great way for investors to make money, share ideas and learn about the market from others. Learn ... Read Answer >>
  2. Do nonprofit organizations have working capital?

    Discover why financial reserves in the nonprofit world are equivalent to working capital used by for-profit businesses, and ... Read Answer >>
  3. Do nonprofit organizations pay taxes?

    Learn more about section 501 of the IRS tax code, and how it exempts qualified nonprofit organizations from federal taxes ... Read Answer >>
  4. Why would a person choose a mutual fund over an individual stock?

    There are a number of reasons why an individual may choose to buy mutual funds instead of individual stocks. The most common ... Read Answer >>
Trading Center