Finance Dictionary ( daily finance terms and concepts will be added and discussed)

Money-Market Fund
A Mutual Fund that invests in short-term debt instruments. The fund’s objective is to earn interest while maintaining a stable net asset value of $1.00 per share. Generally sold with no load, the fund may also offer draft-writing privileges and low opening investments.
 
Money Supply
The total stock of bills, coins, loans, credit and other liquid instruments in the economy. It is divided into four categories -- M1, M2, and M3 -- according to the type of account in which the instrument is kept.
 
Moving Average
A technical analysis term. Expresses the charting of the average prices of a security for a particular period using average daily settlement prices over a defined period of time. For example, charting for thirty days produces a thirty-day moving average.
 
Municipal Bond
Also known as Municipal Security. A debt security issued by a state, a municipality, or other subdivision -- such as a school, park, sanitary, or other local taxing district -- to finance its capital expenditures. Such expenditures might include the construction of highways, public works or school buildings
 
Municipal Bond Fund
A Mutual Fund that invests in Municipal Bonds and operates either as a unit investment trust or as an open-end fund. The fund’s objective is to maximize federally tax-exempt income.
 
Mutual Fund
Also known as Open-End Investment Company or an Open-End Management Company. An investment company that continuously offers new equity shares in an actively managed portfolio of securities. All shareholders participate in the gains or losses of the fund. Shares are issued and redeemed as per demand, and the fund’s Net Asset Value per share (NAV) is determined each day. The shares are redeemable on any business day at the Net Asset Value. Each mutual fund’s portfolio is invested to match the objective stated in the prospectus.
 
NASD
Abbreviation for The National Association of Securities Dealers, Inc. NASD is the self*regulatory organization of the securities industry responsible for the operation and regulation of the NASDAQ Stock Market and over*the*counter markets.
 
NASDAQ
Abbreviation for the National Association of Securities Dealers Automated Quotation System. NASDAQ is a nationwide computerized quotation system that produces current bid and asked quotations on over 5,500 Over-The-Counter stocks
 
NAV per share
The value of a mutual fund share. The NAV per share is calculated by dividing the total Net Asset Value of the fund by the number of shares outstanding.
 
Net Asset Value
Abbreviated NAV. The value of a Mutual Fund share calculated once a day, based on the closing market price for each security in the fund’s portfolio. It is computed by deducting the fund’s liabilities from the total assets of the portfolio and dividing this amount by the number of shares outstanding.
 
Net Change
The difference between the closing price of a security on the trading day reported and the previous day’s closing price. In over-the-counter transactions, the term refers to the difference between the closing bids.
 
Net Domestic Product
A measure of the annual economic output of a nation adjusted to account for depreciation. It is calculated by subtracting the amount of depreciation from the Gross Domestic Product.
 
Net Interest Margin
A ratio used for evaluating management for bank stocks. Measures the difference between interest paid and interest collected.
 
Net Profit
Also known as Net Earnings or Net Income. Profits remaining after all expenses and taxes are applied and out of which dividends are payable.
 
New York Stock Exchange (NYSE)
The largest stock exchange in the United States. It is a corporation, operated by a board of directors, and it is responsible for setting policy, supervising Exchange and member activities, listing securities, overseeing the transfer of members’ seats on the Exchange, and judging whether an applicant is qualified to be a specialist
 
No-Load Fund
A mutual fund whose shares are sold without a commission or sales charge. The shares are distributed directly by the investment company.
 
Nominal Yield
Also known as Coupon Rate and Stated Yield. The interest rate stated on the face of a bond that represents the percentage of interest to be paid by the issuer on the face value of the bond
 
Normal Yield Curve
Also known as Positive Yield Curve. A chart showing long-term debt instruments having higher yields than short-term debt instrument
 
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