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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.
- Browse Related Terms: Dwelling, Home Improvement Loan, Home Purchase Loan, Loan Purpose, Occupancy, Property Type, Refinancing
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An event that results in an insured loss.
- Browse Related Terms: Adjuster, Agency, claim, Claimant, Claims Adjuster, Covered Expenses, Deductible, Insured, Insurer, Limits, Loss, Occurrence, Settlement
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An event that results in an insured loss.
- Browse Related Terms: Builders Risk, Debris removal, Exclusions, HO Forms, Liability, Named perils, Occurrence, Peril, Proof of loss, Residual market, Sewer Back-up and Sump Pump Overflow Coverage
A number of shares which is less than a board lot.
- Browse Related Terms: capital stock, common shares, equity, long, Odd lot, Prospectus, securities act, shares
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The purchase or sale of securities in quantities of fewer than the standard trading lot - 100 shares of stock or $1,000 worth of bonds - is considered an odd lot.
At one time, trading an odd lot might have cost you a slightly higher commission, but in the electronic trading environment that's generally no longer the case.
- Browse Related Terms: Arbitrage, Balance of trade, Decimal pricing, Downtick, Efficient market, Moving average, Odd lot, Round lot, Xenocurrency
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Transactions in New York Stock Exchange (NYSE) listed securities that aren't executed on a national exchange are known as off-board transactions.
Those trades may be handled through an electronic market, such as the Nasdaq Stock Market, through an electronic communications network (ECN), or internally at a brokerage firm. The term off-board derives from the fact that the NYSE is colloquially known as the Big Board.
- Browse Related Terms: Electronic communications network (ECN), Fourth market, Instinet, National Association of Securities Dealers Automated Quotation System (NASDAQ), NYSE Arca, Off-board, Secondary market, Third market
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The offer is the price at which someone who owns a security is willing to sell it. It's also known as the ask price, and is typically paired with the bid price, which is what someone who wants to buy the security is willing to pay. Together they constitute a quotation.
- Browse Related Terms: Crossed market, Dutch auction, Market order, National Market System (NMS), Noncompetitive bid, Offer, Order imbalance, Order protection rule, Small order execution system (SOES), Specialist, Spoofing, Tender offer, Toehold purchase
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The offering date is the first day on which a stock or bond is publicly available for purchase. For example, the first trading day of an initial public offering (IPO) is its offering date.
- 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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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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The Office of Government Ethics exercises leadership in the executive branch to prevent conflicts of interest on the part of Government employees, and to resolve those conflicts of interest that do occur. In partnership with executive branch agencies and departments, OGE fosters high ethical standards for employees and strengthens the public's confidence that the Government's business is conducted with impartiality and integrity.
- Browse Related Terms: Blind trust, Certificate of Divestiture, Ethics Agreement, Office of Government Ethics (OGE), Prohibited Source, Qualified Trusts, Recusal, Senior Legal Counsel (SLC), Waiver
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A check drawn on a financial institution and signed by an authorized financial institution official. (Also known as a cashier's check.)
- Browse Related Terms: Cashier's Check, Certified check, Certified Check, Treasurer's/Cashier or Other Official Check, Co-Signer, Dodd-Frank Wall Street Reform and Consumer Protection Act, Electronic Funds Transfer Act (EFTA), Forged Check, Official Check, Signature card
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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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An offshore fund is a mutual fund that's sponsored by a financial institution that's based outside the United States. Unless the fund meets all of the regulatory requirements imposed on domestically sponsored funds, it can't be sold in the United States.
However, an offshore fund may be sponsored by an overseas branch of a US institution, may invest in US businesses, and may be denominated, or offered for sale, in US dollars. In total, there are approximately four times as many offshore funds as there are US-based funds.
- Browse Related Terms: American depositary receipt (ADR), Annuity unit, Block trade, Capital appreciation, Exchange-traded fund (ETF), expense ratio, Institutional fund, Mark to the market, Net asset value (NAV), Offshore fund, Open-end mutual fund, Proprietary fund, share, Standard & Poor's Depositary Receipt (SPDR), Underlying investment, Unit investment trust (UIT), Unit trust
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Persons required to file the OGE Form 450 (Confidential Financial Disclosure report) under the authority of the Ethics in Government Act of 1978, as amended (and Joint Ethics Regulation 7-300 for DoD employees).
- Browse Related Terms: Alternate Designated Agency Ethics Official (ADAEO), Designated Agency Ethics Official (DAEO), Ethics Counselor (EC) or Ethics Official, OGE 450 Filer, Reporting Individual, Reviewing Official, Schedule C Employee, SF 278 Filer, Special Government Employee (SGE)
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A service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer, or other electronic device, via the financial institution's Internet web site. (This is also known as Internet, electronic, or home banking.)
- Browse Related Terms: Electronic banking, Foreign Transaction Fee, Free Checks, Online Banking, Service Charge, Virtual bank
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To buy and sell securities online, you set up an account with an online brokerage firm.
The firm executes your orders and confirms them electronically. When the markets are open, the turnaround may be very fast, but you can also give buy or sell orders at any time for execution when the markets open.
You may mail the firm checks to settle your transactions or transfer money electronically from your bank account.
Some online firms are divisions of traditional brokerage firms, while others operate exclusively in cyberspace. Most of them charge much smaller trading commissions than conventional firms.
Online firms usually provide extensive investment information, including regularly updated market news, on their websites, though not one-on-one consultations.
- Browse Related Terms: broker-dealer, Brokerage account, Brokerage firm, Brokerage window, Commission, Deep discount brokerage firm, Discount brokerage firm, Floor broker, Full-service brokerage firm, Internalization, Online brokerage firm, Online trading, Price improvement, Soft dollars, Wire room
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If you trade online, you use a computer and an Internet connection to place your buy and sell orders with an online brokerage firm.
While the orders you give online are executed immediately while the markets are open, you also have the option of placing orders at your convenience, outside of normal trading hours.
- Browse Related Terms: broker-dealer, Brokerage account, Brokerage firm, Brokerage window, Commission, Deep discount brokerage firm, Discount brokerage firm, Floor broker, Full-service brokerage firm, Internalization, Online brokerage firm, Online trading, Price improvement, Soft dollars, Wire room
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Most mutual funds are open-end funds. This means they issue and redeem shares on a continuous basis, and grow or shrink in response to investor demand for their shares.
Open-end mutual funds trade at their net asset value (NAV), and if the fund has a front-end sales charge, that sales charge is added to the NAV to determine the selling price.
NAV is the value of the fund's investments, plus money awaiting investment, minus operating expenses, divided by the number of outstanding shares.
An open-end fund is the opposite of a closed-end fund, which issues shares only once. After selling its initial shares, a closed-end fund is listed on a securities market and trades like stock. The sponsor of the fund is not involved in those transactions.
However, an open-end fund may be closed to new investors at the discretion of the fund management, usually because the fund has grown very large.
- Browse Related Terms: American depositary receipt (ADR), Annuity unit, Block trade, Capital appreciation, Exchange-traded fund (ETF), expense ratio, Institutional fund, Mark to the market, Net asset value (NAV), Offshore fund, Open-end mutual fund, Proprietary fund, share, Standard & Poor's Depositary Receipt (SPDR), Underlying investment, Unit investment trust (UIT), Unit trust
An open-ended mutual fund continuously issues and redeems units, so the number of units outstanding varies from day to day. Most mutual funds are open-ended.
- Browse Related Terms: annual and semi-annual reports, Back-end load, expense ratio, front-end load, load, management company, management expense ratio, Mutual Fund, net asset value, net asset value per share, no-load fund, open-ended fund, Redemption, Sales charge, total return
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Open interest is a record of the total number of open contracts in any particular commodity or options market on any given day.
You have an open contract when you enter a futures or options contract. The contract remains open until it expires, requires delivery or settlement, or you close it by selling it or buying an offsetting contract.
Open interest is not the same thing as trading volume, which records how many contracts have been opened or closed on a particular day.
- Browse Related Terms: Cash settlement, Clearinghouse, Closing price, Commodity, Daily trading limit, derivative, Financial future, Fungible, Futures contract, Go long, Hedger, Open interest, Speculator, Trade date, Trading volume, Unit of trading, Weather derivative, Zero sum
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In an open market, any investor with the money to pay for securities is able to buy those securities.
US markets, for example, are open to all buyers. In contrast, a closed market may restrict investment to citizens of the country where the market is located.
Closed markets may also limit the sale of securities to overseas investors, or forbid the sale of securities in specific industries to those investors.
In some countries, for example, overseas investors may not own more than 49% of any company. In others, overseas investors may not invest in banks or other financial services companies.
The term open market is also used to describe an environment in which interest rates move up and down in response to supply and demand.
The Federal Reserve's Open Market Committee assesses the state of the US economy on a regular schedule. It then instructs the Federal Reserve Bank of New York to buy or sell Treasury securities on the open market to help control the money supply.
- Browse Related Terms: Brady bond, Central bank, Depository Trust and Clearing Corporation (DTCC), Devaluation, Euro, Eurobond, Eurocurrency, Exchange Rate, Floating rate, Global depositary receipt (GDR), International Monetary Fund (IMF), Monetary policy, Monetary reserve, Open market, World Bank, Yankee bond
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Open-market operations allow the Fed to implement its monetary policy and regulate the money supply.
The Federal Reserve's Open Market Committee (FOMC) regularly instructs the securities desk of the Federal Reserve Bank of New York to buy or sell government securities as part of the process of increasing or decreasing the cash available for lending.
- Browse Related Terms: Check hold, Checking account, Commercial bank, Comptroller of the Currency, Federal Deposit Insurance Corporation (FDIC), Federal funds, Federal Reserve Fedwire, Federal Reserve System, Financial institution, Loose credit, Mutual company, National Bank, Nonbank banks, Open-market operations, Regulation D, Reserve requirement