1. Definition A - C
2. Definition D - G
3. Definition H - L
4. Definition M - O
5. Definition P - R
6. Definition S - T
7. Definition U - Z
8. Back to Main
|Stock Glossary - (M - O)
A - C
| D -
G | H - L
| M -
O | P - R
| S -
T | U - Z
- Management fee
- The money paid to the manager(s) of a mutual fund, annuity
subaccount, or other type of professionally managed investment. Also
called an advisory fee.
- Margin account
- A brokerage account that permits the owner to borrow money to buy
securities. Margin accounts should not be used by inexperienced
investors, or those who are putting money at risk that they can't afford
- Margin call
- A brokerage firm's demand that a customer deposit enough money or
securities to bring a margin account back up to the minimum maintenance
amount. This is typically made after the value of the margined
securities has plummeted.
- Market capitalization (market cap)
- A company's total stock market value, calculated by multiplying the
price of a single share by the total number of shares outstanding. You
can find information about shares outstanding from the company's last
quarterly report or any online quote service (e.g., http://quote.fool.com/).
- Market order
- An order to buy or sell immediately at the best price available.
- Market timing
- An investment strategy based on predicting short-term price changes
in securities, which is virtually impossible to do.
- Maturity/maturity date
- The date on which the issuer of a certificate of deposit or a bond
agrees to repay the principal to the buyer.
- The unification of two or more companies.
- Micro-cap stock
- Stocks with market capitalizations of less than $150 million.
- Mid-capitalization (mid-cap) stocks
- Generally, companies whose market value is between $1 billion and
about $10 billion.
- Money market fund
- A mutual fund that invests in very short-term, high-liquidity
investments. Similar to a savings account, though usually offering
better interest rates.
- Muni fund
- See Municipal bond fund.
- Municipal bond
- A debt instrument issued by a state or local government. The
advantage of investing in municipal bonds (or "munis") is their
exemption from federal, and sometimes state and local, taxes.
- Municipal bond fund
- A mutual fund that invests primarily in municipal bonds.
- Mutual fund
- The pooled cash of many shareholders that is invested according to a
stated objective, as defined by the fund's prospectus. See The
Truth About Mutual Funds.
- Mutual savings bank
- A savings bank that is owned by, and operated for the benefit of,
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- See National
Association of Investors Corporation.
- Naked options
- Options that are sold on securities when the seller does not
actually own shares of the underlying securities -- a highly risky
endeavor. Naked options, unsurprisingly, are also referred to as
- See National
Association of Securities Dealers.
- NASD Regulation (NASDR)
- An independent subsidiary of the NASD that regulates the activities
of broker/dealers in the over-the-counter markets and the Nasdaq Stock
- Nasdaq (National Association of Securities Dealers Automated
- A computerized system that stores and displays up-to-the-second
price quotations for securities traded over the counter.
- Nasdaq 100 Index
- An index that includes the Nasdaq's 100 largest companies
(Microsoft, Intel, WorldCom, Dell, etc.) and is heavily focused on
technology companies. You can buy it as a single stock -- it's called
the Nasdaq 100 Index Tracking Stock (AMEX: QQQ).
- National Association of Investors Corporation
- The NAIC is a nonprofit association dedicated to the education of
investment clubs and individuals. See what the NAIC has to offer at
their website. Learn more about
investment clubs at Introduction
to Investment Clubs.
- National Association of Securities Dealers
- The largest securities-industry self-regulatory organization in the
United States. Through its subsidiaries -- the NASD Regulation, Inc. and
The Nasdaq Stock Market, Inc. -- the National Association of Securities
Dealers develops rules and regulations and conducts regulatory reviews
of members' business activities.
- See Net asset
- Net asset value (NAV)
- The price of each share of a mutual fund. It is calculated by
subtracting the fund's liabilities from its total assets, and dividing
that figure by the number of shares outstanding. The NAV is the amount
of money that an investor would receive for each share if the mutual
fund sold all of its assets, paid off all of its outstanding debts, and
distributed the proceeds to shareholders.
- Net income
- Gross income minus total expenses gives you net income. You'll find
this information on the income statement.
- Net investment
- Gross, or total, investment minus depreciation.
- Net profit
- The bottom line. This is how much money the company made in profits.
It can also refer to net profit margin, which is a percentage telling
you how many cents on each dollar is pure profit.
- Net profit margin
- Net income as a percentage of sales. You get this by dividing net
income by sales. Since it's a percentage, it tells you how many cents on
each dollar of sales is pure profit.
- Net quick assets
- Cash, accounts receivable (which is money owed to the company from
its customers), and marketable securities, minus current liabilities.
- Net revenue
- Net revenue is revenues (sales), minus returns, discounts, and
- New York Stock Exchange (NYSE)
- The oldest and largest stock exchange in the United States, this
Wall Street haunt is frequently featured on television, with hundreds of
traders on the floor staring up at screens and answering phones, ready
to trade stocks on command from their firms.
- Nikkei Index
- An index of more than 200 blue-chip stocks traded on the Tokyo Stock
- No-load fund
- A mutual fund that does not charge a sales commission. See Mutual
- Nominal returns
- Investment returns before adjusting for inflation.
- Normal trading unit
- See Round
- See New York Stock Exchange.
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- Odd lot
- Trading securities in share amounts of either less than 100 or an
amount that is not a multiple of 100. Trading in odd lots used to incur
higher transaction fees from full-service brokerages. Today, with
online, computerized discount trading, buying and selling stock in odd
lots no longer involves higher transaction costs.
- Offering price
- See Ask.
- One-time charge
- A cost that a company must pay once, as compared with costs it must
pay regularly. If, for instance, the company spends money to acquire
another company, that may be considered a "one-time charge." One-time
charges are generally backed out of earnings for comparisons to prior
time periods so that they don't artificially inflate or deflate the
- Open order
- A buy or sell order that has not yet been canceled or executed.
- Open-end fund
- A mutual fund that has an unlimited number of shares available for
purchase. Most mutual funds are open-ended. See Closed-end fund.
- Operating cash flow
- Dough that's piling up in the course of a company running its
business. Fools love cash generators because they can rely less on
outside funding to grow their business.
- Operating cycle
- The time it takes to sell a product and collect cash from the sale.
An operating cycle can last from several weeks to a number of years.
- Operating expenses
- The cost of doing business. Operating expenses are deducted from
revenues, and the result is, hopefully, profits.
- A call option is a contract in which a seller gives a buyer the
right, but not the obligation, to buy the optioned shares of a company
at a set price (the strike price) for a certain period of time. If the
stock fails to exceed the strike price before the expiration date, the
option expires worthless. A put option is a contract that gives the
buyer the right, but not the obligation, to sell the stock underlying
the contract at a predetermined price (the strike price). The seller (or
writer) of the put option is obligated to buy the stock at the strike
- A request from a client to a broker to buy or sell stock, either at
the market price or at a specific price.
- Over the counter (OTC)
- A geographically decentralized market in which stock and other
securities transactions are not conducted in person -- as on the
much-televised floor of the New York Stock Exchange -- but through a
telephone and computer network. The over-the-counter market is regulated
by the National Association of Securities Dealers (NASD).
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