|
[ J - N
]
Liquidity. The ease with which an asset can be converted to cash.
Long position. Purchase and ownership of a security by an investor. Investor has the right to profits and losses as the security's value changes.
Long-term capital gain or loss. Gain or loss on the sale or exchange of a security (including mutual fund shares) that has been held for more than one year. A maximum tax rate of 20% will generally be applied to long-term capital gains. Investors in the 10% or 15% federal income tax brackets are taxed at a rate of 10% on their long-term capital gains.
Market capitalisation. The value of a corporation as determined by the market price of its issued and outstanding common stock. Analysts look at market capitalization in relation to book value for an indication of how investors value a company's future prospects.
Maturity date. Date on which the principal amount of a debt instrument becomes due and payable.
Monetary Authority of Singapore (MAS). The Central Bank of Singapore, the MAS regulates all elements of monetary, banking and financial aspects of Singapore.
Money market fund. A mutual fund that invests in short-term government securities, certificates of deposit and other highly liquid securities, and generally pays money market rates of interest. The fund's net asset value tends to remain a constant $1.00 per share, but an investment in a money market fund is neither insured nor guaranteed by the U.S. government or by any other entity or institution, so there is no assurance that the share price will be maintained.
Mortgage-backed securities. Issues in which residential mortgages are packaged and sold to investors who receive payments from the interest and principal on the underlying mortgages. (See Ginnie Mae)
Municipal bond. Unique to the US context, it is a debt obligation of a state or local government entity. The interest these securities pay is generally free from regular federal income tax and may be free from state and local personal income taxes. The two major types of municipal securities are general obligation bonds and revenue bonds.
Mutual fund. An investment company that operates and professionally manages a portfolio of securities with money raised from shareholders. The portfolio may be invested in stocks, bonds or cash. These funds offer investors the advantages of diversification and professional management, for a management fee.
Nasdaq (National Association of Securities Dealers Automated Quotation System). A computerized system that stores and displays current price quotations for the over-the-counter market.
Net asset value (NAV). Market value of one share of a mutual fund on a given day; also known as the bid price. Unlike the public offering price, the NAV includes no sales charges. It is calculated each business day by taking the closing market value of all securities owned by the mutual fund, plus all other assets (e.g., cash) and subtracting liabilities. To reach the NAV per share, the remainder is then divided by the total number of shares outstanding.
New York Stock Exchange (NYSE). Oldest and largest stock exchange (an organized marketplace where stocks and bonds are traded) in the U.S., listing more than 3,000 companies.
[ J - N
]
|
