N
NAV
Net asset value (NAV) is the value of an entity's assets minus the value of its liabilities, often in relation to open-end or mutual funds. Net asset value may represent the value of the total equity, or it may be divided by the number of shares outstanding held by investors, thereby representing the net asset value per share. In the context of mutual funds, NAV per share is computed once a day based on the closing market prices of the securities in the fund's portfolio. All mutual funds' buy and sell orders are processed at the NAV of the trade date.
Ο
Open-End Fund
An Open-ended fund, as opposed to a Close-end fund, is a mutual fund which can issue or redeem shares according to the level of subscriptions and redemptions.
Option
Is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a specified date, depending on the form of the option.
Over The Counter (OTC)
Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without any supervision of an exchange. It is contrasted with exchange trading, which occurs via exchanges.
P
P/E Ratio
The price-earnings ratio (P/E Ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings.
Paying Agent
An agent who accepts payments from the issuer of a security and then distributes the payments to the holders of the security. Also known as a "disbursing agent."
Portofolio
A grouping of financial assets such as stocks, bonds and cash equivalents, as well as their mutual, exchange-traded and closed-fund counterparts. Portfolios are held directly by investors and/or managed by financial professionals.
Preferred Stock
Preferred stock is a type of stock which may have any combination of features not possessed by common stock, including properties of both of an equity and a debt instrument, and is generally considered a hybrid instrument. Preferred stocks are senior to common stock, but subordinate to bonds in terms of claim (or rights to their share of the assets of the company) and may have priority over common stock (ordinary shares) in the payment of dividends and upon liquidation.
Prospectus
A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details about an investment offering for sale to the public. A prospectus should contain the facts that an investor needs to make an informed investment decision.
Q
Quantitative Easing
Quantitative easing refers to unconventional and accommodative monetary policies (such as large purchases of sovereign debt) which translate into an increase of the central bank’s balance sheet. In contrast to quantitative easing, qualitative easing involves a shift in the composition of the central bank’s assets toward riskier assets rather than an increase in their sizes.