No load mutual fund

Similar financial terms

Non-amortizing securities
Securities that do not have an amortization schedule.

De novo entry
Entry into an industry by forming a new company as opposed to combining with an existing firm in the industry.

Abnormal return
In event studies, the part of the return that is not predicted; the change in value caused by the event. Also referred to as excess return, benchmark adjusted.

NOI
Net operating income. Revenue minus all operating costs including depreciation.

NOPAT
Net operating profit after taxes. Can be calculated as: NOI x (1 - T) where NOI is the net operating income and T is the marginal tax rate applicable to a line of business. NOPAT is essential to the calculation of economic value added (EVA)

No-shop agreement
The target company involved in merger or acquisition agrees not to consider other offers while negotiating with a particular bidder.

Announcement Date
The date on which a company makes it public that they will do a split.

Lognormal distribution
A varaible has a lognormal distribution when the logarithm of the variable has a normal distribution.

Economic cycle
The economic cycle are predictable long-term pattern changes in national income. As for business cycles, the economic cycle has four (similar) stages:
- expansion
- prosperity
- contraction
- recession
After a recession, an expansion can start again. Some economists believe that major stock price movement patterns precede the stages of the economic cycle.

NOK
Norwegian Krone from Norway. Also used in Antarctica, Bouvet Islands, Svalbard and Jan Mayen Islands.

The introduction of the krone as the legal tender in Norway, 1875 was a result of the Scandinavian Monetary Union, which lasted until the First World War. The parties to the monetary union was the Scandinavian countries of Sweden and Denmark from the start in 1873, with Norway joining two years later.

The name of the currency was Krone in Denmark and Norway, and Krona in S ...

Economic indicators
Statistical indexes, rates, and other measurements of national financial and social trends, used to predict overall business climate and growth patterns.

Abnormal returns
Part of the return that is not due to systematic influences (market wide influences). In other words, abnormal returns are above those predicted by the market movement alone.

Accounts receivable turnover
The ratio of net credit sales to average accounts receivable, a measure of how quickly customers pay their bills.

All or none
Requirement that none of an order be executed unless all of it can be executed at the specified price.

All-or-none underwriting
An arrangement whereby a security issue is canceled if the underwriter is unable to re-sell the entire issue.

Nostro accounts
As there is no dollar cleraing and settlement system outside the USA, all eurodoolar transactions must take place through banks in New York using their clearing house system. Therefore all banks operating outside the USA and dealing in eurodollars must hold demand deposit accounts with US-based banks in New York through which receipts and payments can be effected.

These accounts, known as Nostro accounts, are also used to settle banks' foreign exchange transactions and to enable them to ...

U.S. Treasury note
U.S. government debt with a maturity of one to 10 years.

Turnover
In managerial finance it is the number of times a given asset, such as inventory, is replaced during the accounting period, usually a year.

In corporate corporate finance it is the ratio of annual sales to net worth, representing the extent to which a company can growth without outside capital.

In financial markets it is the volume of shares traded as a percent of total shares listed during a specified period, usually a day or a year.

For mutual funds it is a measu ...

Treynor Index
Treynor's T is a measure of the excess return per unit of risk, where excess return is defined as the difference between the portfolio's return and the risk-free rate of return over the same evaluation period and where the unit of risk is the portfolio's beta.

Total asset turnover
The ratio of net sales to total assets.

Thus, the total asset turnover ratio compares the turnover with the assets that the business has used to generate that turnover.

In other words, we are just saying that for every 1 of assets, the turnover is x.

Tenor
Maturity of a loan.

TBA (to be announced)
A contract for the purchase or sale of a MBS to be delivered at an agreed-upon future date but does not include a specified pool number and number of pools or precise amount to be delivered.

Synchronous data
Data available at the same time. In testing option-pricing models, the price of the option and of the underlying should be synchronous, representing the same moment in the market.

Statement of Financial Accounting Standards No. 52
This is the currency translation standard currently used by U.S. firms. It mandates the use of the current rate method.

Statement of Financial Accounting Standards No. 8
This is a currency translation standard previously in use by U.S. accounting firms.

Standardized normal distribution
A normal distribution with a mean of 0 and a standard deviation of 1.

Receivables turnover ratio
Total operating revenues divided by average receivables. Used to measure how effectively a firm is managing its accounts receivable.

Promissory note
Written promise to pay.

Project notes (PNs)
Project notes are issued by municipalities to finance federally sponsored programs in urban renewal and housing and are guaranteed by the US Department of Housing and Urban Development.

Portfolio turnover rate
For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.

Option not to deliver
In the mortgage pipeline, an additional hedge placed in tandem with the forward or substitute sale.

Novation
Defeasance whereby the firm's debt is canceled.

Notional principal amount
In an interest rate swap, the predetermined dollar principal on which the exchanged interest payments are based.

Notification date
The day the option is either exercised or expires.

Notice day
A day on which notices of intent to deliver pertaining to a specified delivery month may be issued.

Notes to the financial statements
A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements.

Note issuance facility (NIF)
An agreement by which a syndicate of banks indicates a willingness to accept short-term notes from borrowers and resell these notes in the Eurocurrency markets.

Note agreement
A contract for privately placed debt.

Note
Debt instruments with initial maturities greater than one year and less than 10 years.

Normalizing method
The practice of making a charge in the income account equivalent to the tax savings realized through the use of different depreciation methods for shareholder and income tax purposes, thus washing out the benefits of the tax savings reported as final net income to shareholders.

Normal random variable
A random variable that has a normal probability distribution.

Normal portfolio
A customized benchmark that includes all the securities from which a manager normally chooses, weighted as the manager would weight them in a portfolio.

Normal probability distribution
A probability distribution for a continuous random variable that is forms a symmetrical bell-shaped curve around the mean.

Normal backwardation theory
Holds that the futures price will be bid down to a level below the expected spot price.

Normal annuity form
The manner in which retirement benefits are paid out.

Nonsystematic risk
Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also called unique risk or diversifiable risk. Systematic risk refers to risk factors common to the entire economy.

Nonrefundable
Not permitted, under the terms of indenture, to be refundable.

Nonredeemable
Not permitted, under the terms of indenture, to be redeemed.

Nonrecourse
Without recourse, as in a non-recourse lease.

Nonmarketed claims
Claims that cannot be easily bought and sold in the financial markets, such as those of the government and litigants in lawsuits.

Nondiversifiable risk
Risk that cannot be eliminated by diversification.

Nondiversifiability of human capital
The difficulty of diversifying one's human capital (the unique capabilities and expertise of individuals) and employment effort.

Noncompetitive bid
In a Treasury auction, bidding for a specific amount of securities at the price, whatever it may turn out to be, equal to the average price of the accepted competitive bids.

Noncash charge
A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow.

Non-tradables
Refer to goods and services produced and consumed domestically that are not close substitutes to import or export goods and services.

Non-reproducible assets
A tangible asset with unique physical properties, like a parcel of land, a mine, or a work of art.

Non-parallel shift in the yield curve
A shift in the yield curve in which yields do not change by the same number of basis points for every maturity.

Non-insured plans
Defined benefit pension plans that are not guaranteed by life insurance products.

Non-financial services
Include such things as freight, insurance, passenger services, and travel.

Non-cumulative preferred stock
Preferred stock whose holders must forgo dividend payments when the company misses a dividend payment.

Nominal price
Price quotations on futures for a period in which no actual trading took place.

Nominal interest rate
The interest rate unadjusted for inflation.

Nominal exchange rate
The actual foreign exchange quotation in contrast to the real exchange rate that has been adjusted for changes in purchasing power.

Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.

Nominal annual rate
An effective rate per period multiplied by the number of periods in a year.

Nominal
In name only. Differences in compounding cause the nominal rate to differ from the effective interest rate. Inflation causes the purchasing power of money to differ from one time to another.

No-load fund
A mutual fund that does not impose a sales commission.

Noise
Price and volume fluctuations that can confuse interpretation of market direction.

Negotiable order of withdrawal (NOW)
Demand deposits that pay interest.

Municipal notes
Short-term notes issued by municipalities in anticipation of tax receipts, proceeds from a bond issue, or other revenues.

Money market notes
Publicly traded issues that may be collateralized by mortgages and MBSs.

Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts payable and receivable, and long-term debt) are translated at the current rate while non-monetary items (e.g. inventory, fixed assets, and long-term investments) are translated at historical rates.

Minority interest
An outside ownership interest in a subsidiary that is consolidated with the parent for financial reporting purposes.

Medium-term note (MTN)
A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from the following maturity bands: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., up to 30 years.

Liquid yield option note (LYON)
Zero-coupon, callable, putable, convertible bond invented by Merrill Lynch & Co.

Leading economic indicators
Economic series that tend to rise or fall in advance of the rest of the economy.

Knock-in option
An option that begins to function as a normal option ("knocks in") once a certain price level is reached before expiration. Might not knock in at all.

Knock-out option
An option with a built in mechanism to expire worthless should a specified price level be exceeded.

European Economic Area (EEA)
The European Economic Area (EEA) came into being on 1 January 1, 1994 following an agreement between the European Free Trade Association (EFTA) and the European Union (EU). It was designed to allow EFTA countries to participate in the European Single Market without having to join the EU. In a referendum, Switzerland (ever keen on neutrality) chose not to participate in the EEA (although it is linked to the European Union by bilateral agreements similar in content to the EEA agreement), so the cu ...

Xenocurrency
Xeno means foreign or strange. A Xenocurrency is one that trades outside its domestic boundaries.

Macroeconomics
The subdivision of the discipline of economics that studies and strives to explain the functioning of the economy as a whole -- the total output of the economy, the overall level of employment or unemployment, movements in the average level of prices (inflation or deflation), total savings and investment, total consumption and so on. The focus of much of macroeconomic theory is analysis of the ways in which conscious government policies (and the unintended secondary consequences of these policie ...

Keynesian Economics
The economic theory that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.

Bank anticipation notes (BAN)
Notes issued by states and municipalities to obtain interim financing for projects that will eventually be funded long term through the sale of a bond issue.

Binomial option pricing model
An option pricing model in which the underlying asset can take on only two possible, discrete values in the next time period for each value that it can take on in the preceding time period.

Country economic risk
Developments in a national economy that can affect the outcome of an international financial transaction.

Cumulative abnormal return (CAR)
Sum of the differences between the expected return on a stock and the actual return that comes from the release of news to the market.

Current / noncurrent method
Under this currency translation method, all of a foreign subsidiary's current assets and liabilities are translated into home currency at the current exchange rate while noncurrent assets and liabilities are translated at the historical exchange rate, that is, the rate in effect at the time the asset was acquired or the liability incurred.

Give the nod
Give approval to a plan; perceive as having an advantage.

Barter economy
Trading of goods or services directly for other goods or services, without using money or any other similar unit of account or medium of exchange. Although barter represents the earliest form of trade discovered by primitive man that made possible a more extensive division of labor beyond the limited bounds of a family or small clan grouping, it quickly encounters some practical limits to its efficiency as the division of labor becomes still more extensive and more specialized. Bartering require ...

Reaganomics
A school of thought within the economics profession emphasizing that the main source of a country's economic growth is constant improvement in the efficiency with which resources are allocated for production. While the policy recommendations of the rival Keynesian school tend to focus almost entirely on what government can do to stimulate or restrain aggregate demand in the short-run so as to even out the business cycle, supply-side policy analysts focus on barriers to higher productivity -- ide ...

Microeconomics
The subdivision of the discipline of economics that studies the behavior of individual households and firms interacting through markets, how prices and levels of output of individual products are determined in these markets, the interconnections by which different markets affect each other, and how the price mechanism allocates resources and distributes income.

Remuneration and Nomination Committee
A committee that advises the Supervisory Board in a company on compensation policies and the composition of the Supervisory Board and Executive Board. The committee also advises the Supervisory Board on the compensation packages of the members of the Executive Board and the Supervisory Board.

Monopsony
Literally, single buyer. A situation in which a single firm or individual is the only buyer of a particular good or service within a given market.

Don't know (DK, DKed)
"Don't know the trade." A Wall Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. Also, an unscrupulous claim made by one party denying that the trade had been agreed to and made after the trade goes adversely against that party.

Classical Economics
The dominant theory of economics from the 18th century to the 20th century, when it evolved into neo-classical economics. Classical economists, who included Adam Smith, David Ricardo and John Stuart Mill, believed that the pursuit of individual self-interest produced the greatest possible economic benefits for society as a whole through the power of the "Invisible hand". They also believed that an economy is always in equilibrium or moving towards it. Equilibrium was ensured in the labor mar ...

Notice of default
A formal written notice to a borrower that a default has occurred and that legal action may be taken.

Financial economies of scale
The ability of large firms to borrow money on more favourable terms than small firms.

Free market economy
A system where resources are owned by households: markets allocate resources through the price mechanism; and income depends upon the value of resources owned by an individual.

Green economics
The study of environmental issues including the depletion of non renewable resources.

NedCo (Non-executive directors committee of BoE)
NedCo is a committee of the non-executive directors of the Bank of England. NedCo was established by the Bank of England Act 1998, and is responsible for reviewing the Bank's performance in relation to its objectives and strategy. They also determine the pay and conditions of the Governor, Deputy Governors and the four independent members of the Monetary Policy Committee.

Nominal rate of interest
The annual return form lending money expressed as a percentage, without having taken account of the rate of inflation.

Economic rent
A surplus paid to any factor of production over its supply price. Economic rent is the difference between what a factor of production is earning (its return) and what it would need to be earning to keep it in its present use. It is in other words the amount a factor is earning over and above what it could be earning in its next best alternative use (its transfer earnings).

Known price item
When a good whose price is widely known by members of the public is priced to attract customers.

Donor
A transferor. One who transfers title to an asset by gifting.

European Economic Community (EEC)
Now incorporated in the European Union (EU).

Nonresident of the US alien (NRA)
Not a U.S. person as defined under the Internal Revenue Code (IRC).

Societe Anonyme (SA) or Sociedad Anonima (SA)
A Societe Anonyme is a limited liability corporation established under French Law. Requires a minimum of seven shareholders. In Spanish speaking countries, it is known as the Sociedad Anonima. Important characteristic of both is that the liability of the shareholder is limited up to the amount of their capital contribution.

Deposit Notes
A term deposit in a bank. Deposit notes, like medium-term notes, may serve as the basis for an equity or currency-linked risk management structure.

Equity-Linked Note (ELN)
An equity-linked note combines the characteristics of a zero or low coupon bond or note with a return component based on the performance of a single equity security, a basket of equity securities, or an equity index. In the latter case, the security would typically be called an equity index-linked note. Equity-linked notes come in a variety of styles. The minimum return may be nil with all of what would normally be an interest payment going to pay for upside equity participation. Alternatively, ...

Load-to-load
Arrangement whereby the customer pays for the last delivery when the next one is received.

Load fund
A mutual fund with shares sold at a price including a large sales charge -- typically 4% to 8% of the net amount indicated. Some "no-load" funds have distribution fees permitted by article 12b-1 of the Investment Company Act; these are typically 0. 25%. A "true no-load" fund has neither a sales charge nor Freddie Mac program, the aggregation that the fund purchaser receives some investment advice or other service worthy of the charge.

Objective (mutual funds)
The fund's investment strategy category as stated in the prospectus. There are more than 20 standardized categories.

Mutually exclusive investment decisions
Investment decisions in which the acceptance of a project precludes the acceptance of one or more alternative projects.

Mutual offset
A system, such as the arrangement between the CME and SIMEX, which allows trading positions established on one exchange to be offset or transferred on another exchange.

Mutual fund theorem
A result associated with the CAPM, asserting that investors will choose to invest their entire risky portfolio in a market-index or mutual fund.

Mutual fund
Mutual funds are pools of money that are managed by an investment company. They offer investors a variety of goals, depending on the fund and its investment charter. Some funds, for example, seek to generate income on a regular basis. Others seek to preserve an investor's money. Still others seek to invest in companies that are growing at a rapid pace. Funds can impose a sales charge, or load, on investors when they buy or sell shares. Many funds these days are no load and impose no sales ch ...

Balanced mutual fund
This is a fund that buys common stock, preferred stock and bonds. The same as a balanced fund.

Mutual Legal Assistance Treaty (MLAT)
An agreement among the U.S. and many Caribbean countries for the exchange of information for the enforcement of criminal laws. U.S. tax evasion is excluded as not being a crime to the offshore countries. The British Virgin Islands have not executed the Treaty.

Mutual Fund Switching Privileges
Allow an investor to switch out of and into a different fund(s) within the same family of funds at very low or no compensation.

Federal funds rate
The rate charged by the Federal Reserve to member banks when excess reserve loans are made from one bank to another.

Fundamental analysis
A method of research that studies basic financial information to forecast profits, supply and demand, industry strength, management ability, and other intrinsic matters affecting a stock's market value and growth potential.

Annual fund operating expenses
For investment companies, the management fee and "other expenses," including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial and accounting services. For 12b-1 funds, selling and marketing costs are included.

Unfunded debt
Debt maturing within one year (short-term debt).

Underfunded pension plan
A pension plan that has a negative surplus (i.e., liabilities larger than assets).

Two-fund separation theorem
The theoretical result that all investors will hold a combination of the risk-free asset and the market portfolio.

Term Fed Funds
Federal funds sold for a period of time longer than overnight.

Surplus funds
Cash flow available after payment of taxes in the project.

Stopping curve refunding rate
A refunding rate that falls on the stopping curve.

Sinking fund requirement
A condition included in some corporate bond indentures that requires the issuer to retire a specified portion of debt each year. Any principal due at maturity is called the balloon maturity.

Single country fund
A mutual fund that invests in individual countries outside the United States.

Revenue fund
A fund accounting for all revenues from an enterprise financed by a municipal revenue bond.

Regional fund
A mutual fund that invests in a specific geographical area overseas, such as Asia or Europe.

Refunding
The redemption of a bond with proceeds received from issuing lower-cost debt obligations ranking equal to or superior to the debt to be redeemed.

Refunded bond
Also called a prerefunded bond, one that originally may have been issued as a general obligation or revenue bond but that is now secured by an "escrow fund" consisting entirely of direct U.S. government obligations that are sufficient for paying the bondholders.

Refundable
Eligible for refunding under the terms of indenture.

Pure index fund
A portfolio that is managed so as to perfectly replicate the performance of the market portfolio.

Purchase fund
Resembles a sinking fund except that money is used only to purchase bonds if they are selling below their par value.

Private Export Funding Corporation (PEFCO)
Company that mobilizes private capital for financing the export of big-ticket items by US firms by purchasing at fixed interest rates the medium- to long-term debt obligations of importers of US products.

Overfunded pension plan
A pension plan that has a positive surplus (i.e., assets exceed liabilities).

Open-end fund
Also called a mutual fund, an investment company that stands ready to sell new shares to the public and to redeem its outstanding shares on demand at a price equal to an appropriate share of the value of its portfolio, which is computed daily at the close of the market.

Net advantage of refunding
The net present value of the savings from a refunding.

Money market fund
A mutual fund that invests only in short term securities, such as bankers' acceptances, commercial paper, repurchase agreements and government bills. The net asset value per share is maintained at $1. 00. Such funds are not federally insured, although the portfolio may consist of guaranteed securities and/or the fund may have private insurance protection.

Match fund
A bank is said to match fund a loan or other asset when it does so by buying (taking) a deposit of the same maturity. The term is commonly used in the Euromarket.

Low-coupon bond refunding
Refunding of a low coupon bond with a new, higher coupon bond.

Liability funding strategies
Investment strategies that select assets so that cash flows will equal or exceed the client's obligations.

Back-end loan fund
A mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%. Some back-end load funds impose a full commission if the shares are redeemed within a designated time, such as one year. The commission decreases the longer the investor holds the shares. The formal name for the back-end load is the contingent deferred sales charge (CDSC).

Balanced fund
An investment company that invests in stocks and bonds. The same as a balanced mutual fund.

Closed-end fund
An investment company that sells shares like any other corporation and usually does not redeem its shares. A publicly traded fund sold on stock exchanges or over the counter that may trade above or below its net asset value.

Cost of funds
Interest rate associated with borrowing money.

Sinking fund
A sinker is a fund created by a provision in many bond contracts that requires the issuer to set aside each year a portion of the final maturity payment so that investors can be certain that the funds will be available at maturity.

Private Equity Fund
A fund that buys majority stakes in companies and/or entire business units to restructure its capital, management and organization. Usually the targets are delisted (unless already unlisted), held private and restructured over a period of 3-7 years, and then again listed through an IPO.

Restructuring may be done through leveraged buyouts, venture capital, growth capital, angel investing, mezzanine debt, management share participation programmes and others.

Big players in th ...

Segregated Funds
These funds guarantee that, regardless how the fund performs, at least a minimum percentage (usually 75 per cent or more) of the investor's payments into the fund will be returned when the fund matures.

Sinking Fund
A method whereby a company purchases a given percentage of its bonds or shares as per agreement in the trust indenture or prospectus. This provides the investor with some degree of liquidity, knowing that the company must purchase shares each year.

Specialty fund
A mutual fund that concentrates its investments on a specific industrial or economic sector or a defined geographical area.

Advance funded pension plan
Pension plan in which funds are set aside in advance of the date of retirement.