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  • Indicates whether the property to which the loan application relates will be the owner's principal dwelling. For multifamily dwellings (housing five or more families), and any dwellings located outside MSA/MDs, or in MSA/MDs where an institution does not have home or branch offices, an institution may either enter the code for not applicable or the code for the actual occupancy status.

    For purchased loans, use code 1 (owner-occupied as a principal dwelling) unless the loan documents or application indicate that the property will not be owner-occupied as a principal residence.

    For second homes or vacation homes, as well as for rental properties, use code 2 (not owner-occupied as a principal dwelling).

    If a loan relates to multiple properties, the institution reports the owner-occupancy status of the property for which property location is being reported.

    Federal Financial Institutions Examination Council - Cite This Source - This Definition
  • Browse Related Terms: Dwelling, Home Improvement Loan, Home Purchase Loan, Loan Purpose, Occupancy, Property Type, Refinancing

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  • A security's offering price is the price at which it is taken to market at the time of issue. It may also be called the public offering price.

    For example, when a stock goes public in an initial public offering (IPO), the underwriter sets a price per share known as the offering price. Subsequent share offerings are also introduced at a specific price.

    When the stock begins to trade, its market price may be higher or lower than the offering price. The same is true of bonds, where the offering price is usually the par, or face, value.

    In the case of open-end mutual funds, the offering price is the price per share of the fund that you pay when you buy.

    If it's a no-load fund or you buy shares with a back-end load or a level-load, the offering price and the net asset value (NAV) are the same. If the shares have a front-end load, the sales charge is added to the NAV to arrive at the offering price.

  • Browse Related Terms: Floating an issue, Go public, Gross spread, Hot issue, Lock-up period, New Issue, Offering date, Offering price, Oversubscribed, Reverse merger, Secondary offering, Startup

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  • You offset an options or futures position by taking a second position in a contract with identical terms, buying if you sold initially or selling if you bought initially.

    With the offset, you neutralize any potential obligation you had to fulfill the terms of the contract, and you may make a profit or reduce a loss with the transaction.

    For example, if you'd sold an equity call option that is close to being in-the-money, you might buy an offsetting call option. That neutralizes your obligation to deliver the underlying stock if the option you sold is exercised.

    In a tax context, you can use capital losses to offset an equivalent dollar amount of capital gains, or up to $3,000 in capital losses to offset ordinary income. In either case, the offset allows you to reduce the tax you owe.

    Further, banks have the right of offset if a borrower defaults on a loan. That right allows a bank to seize assets in the borrower's deposit accounts with the bank to reduce or eliminate any loss on the loan.

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All > Business > Finance > Personal Finance

All > Business > Finance > Personal Finance

Also listed in:

All > Business > Finance > Personal Finance

All > Business > Finance > Personal Finance

All > Business > Finance > Personal Finance

All > Business > Finance > Personal Finance

All > Business > Finance > Personal Finance

All > Business > Finance > Personal Finance

All > Business > Finance > Personal Finance

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  • When exchange-based commodities traders shout out their buy and sell orders or use a combination of words and hand signals to negotiate an order, it's known as open outcry.

    When someone who shouts an offer to buy and someone who shouts an order to sell name the same price, a deal is struck, and the trade is recorded. Open outcry is one type of auction.

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