Glossary of Financial Terms
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K-O | P-T
Large-cap (capitalization) stocks
Companies with outstanding shares valued at USD6 billion or more.
Generally invest in bonds that come due in five years or less. Usually, the objective of such funds is to produce current income.
The ease with which an asset can be turned into cash. It is a central objective of money market funds.
The current price of an asset, as indicated by the most recent price at which the asset was traded on the open market.
Money Market Fund
Seek to provide current income and maintain a stable net asset value of USD1 per share by investing in short-term, high-grade securities. Investments in the fund are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at USD1.00 per share, it is possible to lose money by investing in the fund.
An investment company that invests the money of its shareholders in a (usually) diversified group of securities to achieve a specific objective over time. Click here for more information about Mutual Funds.
An unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotations System. NASDAQ quotes are published in the financial pages of newspapers. It is not possible to invest directly in an index.
National Association of Securities Dealers (NASD)
An industry organization in the U.S. charged by Congress with standardizing investment practices as well as establishing and enforcing high ethical standards in the financial community.
Net Asset Value (NAV)
The market price of a mutual fund's total assets (after deducting liabilities) per share. It is the price at which a shareholder would sell a fund's shares.
Offshore is an international term meaning not only out of your country (jurisdiction) but out of the tax reach of your country of residence or citizenship; synonymous with foreign, transnational, global, international, transworld and multi-national, though foreign is used more in reference to the IRS. Click here for more information about Offshore Mutual Funds.
Ownership constitutes the holding or possession of limited liability company legal claim or title to an offshore asset.