Municipal bond fundMunicipal bond mutual funds invest in municipal bonds. Earnings from these funds are always free of federal income tax for all shareholders in the fund.
Mutual companyA mutual company is a privately held company owned by its policyholders, depositors, or other customers.
Mutual FundA fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market…
Naked optionWhen you write, or sell, a call option but don't own the underlying instrument, such as a stock in the case of an equity option, the option is described…
Named perils policyA named perils policy is a standard homeowners insurance policy that offers limited protection for damage from fire and theft and other hazards specified…
NASDNASD is the largest self-regulatory organization (SRO) in the United States. Formerly known as the National Association of Securities Dealers, NASD…
NASDAQNASDAQ is the world's oldest electronic stock market and the largest stock exchange in the United States.
NASDAQ Composite IndexThe NASDAQ Composite index tracks the prices of all of the securities traded on the NASDAQ Stock Market.
NASDAQ Stock MarketThe NASDAQ Stock Market is the world's oldest and largest electronic stock market and is now a national securities exchange and an independent…
National BankA bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S.
National debtThe total value of all outstanding Treasury bills, notes, and bonds that the federal government owes investors is referred to as the national debt.
National Flood Insurance Program (NFIP)(NFIP)The program of flood insurance coverage and floodplain management administered under the Flood Disaster Protection Act (FDPA or Act) and applicable…
National Market System (NMS)The National Market System (NMS) links all the major stock markets in the United States and was developed to foster competition among them.
Negative amortizationWhen your loan principal increases rather than decreases because your monthly payment isn't enough to cover the loan interest, that's called negative…
Negative Equitythe condition of owing more on the property than the property is worth.
Negative yield curveA negative, or inverted, yield curve results when the interest rate on short-term US Treasury issues is higher than the rate on on long-term Treasury…
NegotiableA negotiable contract is one whose terms can be altered by agreement between the parties to the contract.
Negotiable-order-of-withdrawal accountA negotiable-order-of-withdrawal (NOW) account is an interest-bearing checking account that pays interest on the balance, usually at a rate comparable to…
Net asset value (NAV)The NAV is the dollar value of one share of a fund. It's calculated by totaling the value of all the fund's holdings plus money waiting investment…
Net changeThe difference between the closing price of a stock, bond, or mutual fund, or the last price of a commodity contract, and the closing price on the…
Net marginA company's net margin, typically expressed as a percentage, is its net profit divided by its net sales.
Net WorthA corporation's net worth is the retained earnings, or the amount left after dividends are paid, plus the money in its capital accounts, minus all of its…
NettingNetting is a process the National Securities Clearing Corporation (NSCC) uses to streamline securities transactions.
New Entrant OGE Form 450You are a new entrant if you did not file an OGE Form 450 or an OGE Form 450-A last year.
New Entrant SF 278A new entrant filer is a Federal government employee who is required to file an SF 278 when he or she first assumes a position that requires the employee…
New IssueWhen a stock or bond is offered for sale for the first time, it's considered a new issue.
New York Stock Exchange (NYSE)The New York Stock Exchange (NYSE) is one of the two securities exchanges operated by the NYSE Group, Inc.
New York Stock Exchange Composite IndexThis New York Stock Exchange Composite Index measures the performance of the common stocks listed on the NYSE, including those of companies headquartered…
Nikkei Stock AverageThe Nikkei Stock Average, sometimes call the Nikkei Index or simply the Nikkei, is a price-weighted index of 225 blue chip stocks traded on the Tokyo…
No-load mutual fundYou buy a no-load mutual fund directly from the investment company that sponsors the fund.
Nominal yieldNominal yield is the annual income that you receive from a bond or other fixed-income security divided by the par value of the security.
Nominee nameNominee name is the name that a brokerage firm uses to register ownership of stocks or bonds it holds for investors.
Non-MemberA non-member is an employee of a public or governmental entity that participates in one of the South Carolina Retirement Systems’ plans, but either…
Nonbank banksNonbank banks, also called limited-service banks, offer some but not all of the services of a traditional commercial bank.
NoncallableWhen a bond is noncallable, the issuer cannot redeem it before the stated maturity date.
Noncompetitive bidInvestors who can't or don't wish to meet the minimum purchase requirements for competitive bidding on Treasury bills or notes may enter a noncompetitive…
Nondepository InstitutionFor-profit mortgage lending institutions (other than banks, savings associations, and credit unions). These institutions do not take deposits.
Nondiscrimination ruleAll qualified retirement plans, including 401(k) plans, must follow nondiscrimination rules.
Nonforfeiture clauseIf there is a nonforfeiture clause in your insurance policy contract, and you have let the policy lapse because you haven't paid a premium that's due, you…
NonprofitCharitable, cultural, and educational organizations that exist for reasons other than providing a profit for its owners, directors, or members are…
Nonqualified annuityAn annuity you buy on your own, rather than through a qualified employer sponsored retirement plan or individual retirement arrangement, is a nonqualified…
nonrefundable creditWhen the amount of a credit is greater than the tax owed, taxpayers can only reduce their tax to zero; they cannot receive a "refund" for any excess…
Nonsystematic riskNonsystematic risk results from unpredictable factors, such as poor management decisions, successful competitive products, or suddenly obsolete…
Not-for-profitA not-for-profit organization pays taxes and may make a profit, but those profits are not distributed to its owners or members.
NoteA note is a debt security that promises to pay interest during the term that the issuer has use of the money, and to repay the principal on or before the…
nullificationA state's refusal to recognize or obey a federal law.
NYSE ArcaNYSE Arca, one of the two securities exchanges operated by the NYSE Group, Inc., is the first open, all-electronic stock exchange in the United States.
OccupancyIndicates whether the property to which the loan application relates will be the owner's principal dwelling.
Odd lotA number of shares which is less than a board lot.
Off-boardTransactions in New York Stock Exchange (NYSE) listed securities that aren't executed on a national exchange are known as off-board transactions.
OfferThe offer is the price at which someone who owns a security is willing to sell it.
Offering dateThe offering date is the first day on which a stock or bond is publicly available for purchase.
Offering priceA 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.
Office of Government Ethics (OGE)The Office of Government Ethics exercises leadership in the executive branch to prevent conflicts of interest on the part of Government employees, and to…
Official CheckA check drawn on a bank and signed by an authorized bank official. (Also known as a cashier's check.)
offsetYou 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…
Offshore fundAn offshore fund is a mutual fund that's sponsored by a financial institution that's based outside the United States.
OGE 450 FilerPersons required to file the OGE Form 450 (Confidential Financial Disclosure report) under the authority of the Ethics in Government Act of 1978, as…
Online BankingA service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer via the…
Online brokerage firmTo buy and sell securities online, you set up an account with an online brokerage firm. The firm executes your orders and confirms them electronically.
Online tradingIf you trade online, you use a computer and an Internet connection to place your buy and sell orders with an online brokerage firm.
Open interestOpen interest is a record of the total number of open contracts in any particular commodity or options market on any given day.
Open marketIn 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.
Open orderAn order to buy or sell a security at a specified price. The order is valid until executed or cancelled.
Open outcryWhen 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…
Open-End CreditA credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services.
Open-end mutual fundMost 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…
Open-ended creditA plan in which the creditor anticipates repeated transactions, and for which there is a finance charge computed on any unpaid balance.
Open-market operationsOpen-market operations allow the Fed to implement its monetary policy and regulate the money supply.
OpeningThe first transaction in each security or commodity when trading begins for the day occurs at what's known as its opening, or opening price.
Opportunity costThe cost of passing up on investment in favor of another.
Opt-InGiving your credit card company or bank permission to include you in a particular service.
Opt-outDeclining a particular service offered by your bank.
OptionBuying an option gives you the right to buy or sell a specific financial instrument at a specific price, called the strike price, during a preset period…
Option premiumWhen you buy an option, you pay the seller a nonrefundable amount, known as the option premium, for the right to exercise that option before it expires.
optionsContracts which give the holder the right to buy (call options) or sell (put option) a fixed amount of a certain stock at a specified price within a…
Options chainOptions chains are charts showing all the options currently available on a particular underlying instrument.
Options classAn options class includes all the calls or all the puts on a single underlying instrument that share some of the same terms, such as contract size and…
Options Clearing Corporation (OCC)The Options Clearing Corporation issues all exchange-listed securities options in the United States and guarantees all transactions in those options.
Options seriesAn options series includes all the contracts within an options class that have identical terms, including expiration date and strike price.
Order imbalanceAn order imbalance occurs when there are substantially more buy orders in a particular security than there are sell orders, or the reverse.
Order protection ruleThe order protection rule, part of Regulation NMS - for National Market System - adopted by the Securities and Exchange Commission (SEC) in 2005, requires…
Original issue discountA bond or other debt security that is issued at less than par but can be redeemed for full par value at maturity is an original issue discount security.
Origination FeeAn origination fee is an amount, usually calculated as a percentage of a mortgage loan or home equity loan, which a lender charges for processing your…
OTC Bulletin Board (OTCBB)During the trading day, the electronic OTC bulletin board (OTCBB) provides continuously updated real-time bid and ask prices, volume information, and…
Out-of-the-moneyAn option is out-of-the-money when the market price of an instrument on which you hold an option is not close to the strike price.
Outstanding CheckA check written by a depositor that has not yet been presented for payment to or paid by the depositor's bank.
Outstanding sharesThe shares of stock that a corporation has issued and not reacquired are described as its outstanding shares.
Over LimitAn open-end credit account in which the assigned dollar limit has been exceeded.
Over-the-counter (OTC)Securities that trade over-the-counter (OTC) are not listed on an organized stock exchange, such as the New York Stock Exchange (NYSE) or the NASDAQ Stock…
Over-the-limit feeA fee charged if your account balance goes over your credit limit. You will not be charged this fee unless you have authorized your credit card company to…
OveragesThe difference between the lowest available price and any higher price that the homebuyer agrees to pay for a loan.
OverboughtWhen a stock or entire securities market rises so steeply in price that technical analysts think that buyers are unlikely to push the price up further…
OverdraftWhen the amount of money withdrawn from a bank account is greater than the amount actually available in the account, the excess is known as an overdraft…
Overdraft FeeThe fee that is charged an account holder for a check that is paid or honored when the available balance in the account is not sufficient to cover the…
Overdraft ProtectionA checking account feature in which money from another account in your name is used to cover the transaction(s) if you don't have enough money in your…
OverdrawTo write a check for an amount that exceeds the amount on deposit in the account.