Share Tool

Glossary of Financial Terms — N, O 





Terms — N
Terms — O

National Association of Securities Dealers

Formed in 1939 under the auspices of the Maloney Act, it is a self-regulating body of the securities industry designated to establish rules of fair practice for the protection of the investing public.


back to top


Negotiated Offering

A method of syndication by which the terms of an offering are determined by negotiation between the issuer and the underwriters’ manager.


back to top


Net Asset Value

The ‘true’ value of a fund’s investments based on the quoted prices of its components.


back to top


Net Asset Value Percentage

Refers to percent of Total Company (net asset) Market Amount.


back to top


Net Unsettled Trades

This is the sum of any Due-To-Broker and Due-From-Broker amounts. The actual item purchased shows in the inventory listings as of the Trade Date. The payable is automatically posted against cash on Settlement Date.


back to top


Network Level 1

A network service consisting of real-time bid/ask quotes for securities trading on the Nasdaq stock market.


back to top


Network Level 3

A trading service consisting of everything in Level 2 plus the ability to enter quotes, execute orders, and send information. This service is restricted to FINRA member firms that function as registered market makers.


back to top


New Issue

A stock or bond sold by a corporation for the first time. Proceeds may be said to retire outstanding debt, for new plants or equipment, or for additional working capital.


back to top


New Money

In a refunding, the amount by which the principal amount of securities offered exceeds the principal amount maturing.


back to top


New Money Preferred

A preferred stock of a public utility that was issued on or after October 1, 1942 and did not refund or replace any bond, debenture or other preferred stock issued prior to October 1, 1942. In accordance with the laws regarding investment by one corporation in the stock of another corporation, corporations are entitled to an 85 % tax deduction on the dividends from new money preferred stocks.


back to top


Nine Bond Rule

The rule of the New York Stock Exchange that all orders for the nine bonds (USD 9000 par amount) or less in listed issues must be sent to the floor for execution unless the customer directs the broker to go the OTC market.


back to top


Nominal Bond

A bond whose value does not adjust to compensate for the impact of inflation.


back to top


Nominal Rate

The growth rate of your money.


back to top


Nominal Return

Describes any change in value, including the artificial rise in prices that comes with inflation.


back to top


Nominal Value

The stated value of an issued security that remains fixed, as opposed to its market value, which fluctuates.


back to top


Nominal Yield

The rate listed on the face of a bond; the coupon rate.


back to top


Nominee Name

The registered name issued by the Comptroller of the Currency into which a bank or a trust company registers the securities it holds as an investment agent for its trust department portfolios, thereby facilitating a good delivery to brokers at time of sale or exchange.


back to top


Non-Callable Treasuries

A treasury which cannot be redeemed at the option of the issuer.


back to top



Non-Qualified Plan: Any type of tax-deferred, employer-sponsored retirement plan that falls outside of ERISA guidelines. Non-qualified plans are designed to meet specialized retirement needs for key executives and other select employees. These plans also are exempt from the discriminatory and top-heavy testing that qualified plans are subject to.

Non-Qualified Stock Option: A type of employee stock option where you pay ordinary income tax on the difference between the grant price and the price at which you exercise the option.

Non Qualified Distribution:
1. A distribution from a Roth IRA that occurs before the Roth IRA owner meets certain requirements (see definition for qualified distributions).
2. A distribution from an education savings account that exceeds the amount used for qualified education expenses.


back to top



Ineligible for a stated period of time, for redemption with funds raised through the sale of an issue having an interest cost lower than that on the outstanding bonds. Bonds with refunding protection are still subject to regular redemption and call for sinking funds.


back to top



A promise to pay as distinguished from an order to pay. A written promise of the maker to pay a certain sum of money to the person named as payee, on demand or at a fixed or determinable future date. In the government securities market, a note is a coupon issue with a maturity of one to ten years. In contrast to Treasury bonds, coupon rates on Treasury notes are not restricted by law.


back to top



An input/output defined in the activity screen within Process Charter. Objects that are affected by work that is being performed. This is in contrast to a resource.


back to top


Odd Coupons

Sometimes, the first or last coupon period is either linger or shorter than a normal coupon period and therefore the coupon payment is more or less than a normal coupon payment. Calculating the odd coupon payment is roughly the same as calculating accrued interest for the number of days in the odd coupon period.


back to top



Refers to a trading unit of a bond that is some fraction of a round-lot. A premium is usually charged for odd-lot transactions.


back to top


Off to Off

Refers to a trade made from one retail account to another (off-the-street to off-the-street).


back to top



The price at which someone will sell a security.


back to top


Offer Wanted

The security referred to is desired by a buyer and prospective sellers are requested to submit offers for it. The inference is that the security will be bought from the lowest offerer.


back to top


Old Money Preferred

A preferred stock of a public utility that was issued prior to October 1, 1942, or that refunded or replaced a bond, debenture or other preferred stock issued prior to October 1, 1942. The tax deduction for corporations investing in stock of another corporation is 60.2 % for income from old money preferreds.


back to top


Omnibus Account

An omnibus account combines the transactions of individual accounts into one master account, usually facilitated by a larger brokerage firm such as Charles Schwab or Edward Jones. This provides small investors access to mutual funds that require large minimum investments at lower fees. The omnibus structure also creates anonymity and protects the identity of individual account holders.


back to top


One-sided Market

A market consisting of only a firm bid or a firm offering.


back to top


Open Currency Position

A holding of a non-domestic asset with the associated currency risk.


back to top



To liquidate all or part of a portfolio and to hold cash or cash equivalents.


back to top


Open-end Fund

A mutual fund that has no fixed number of shares outstanding. The share represent an interest in the fund’s portfolio. New shares are offered to the public and any investor can sell shares back to the fund at market value. Price is determined by the per share net asset value of the portfolio on a daily basis.


back to top


Open Order

An order to buy or sell entered at a certain price and designated good until canceled.


back to top



1. An agreement, or privilege, which conveys the right to buy or sell a specific security at a stipulated price and within a stated period of time. If not exercised during that time, the money paid for the option is forfeited.
2. Right to buy or sell property that is granted in exchange for an agreed-upon sum.


back to top


Option to Double

A feature of an indenture that allows a sinking fund to purchase twice the normal principal amount of bonds for the sinking fund, at the sinking fund call price. Such additional purchases are not considered buying ahead.


back to top


Original Face

Value of asset pool at time of origination.


back to top


Original Issue Discount

The discount from par at which a new issue comes to the market. The IRS treats the accretion of this discount over the life of the security as being current income to the holder.


back to top


Original Principal

The principal amount of a pass-through pool originally issued (also called original face).


back to top



A person who solicits builders, brokers, and others to obtain applications for mortgage loans. Origination is the process by which the mortgage banker brings into being a mortgage secured by real property.


back to top


Out Firm

Advises that a trader has already given someone else an option to buy or sell the security at a given price, for a specified period of time.


back to top


Out Trade

A futures trade by a floor trader which the clearing house cannot march with the other party to the trade, as recorded at the time of the trade.


back to top



A market that is susceptible to a downward correction in price levels. Implies that prices have risen more than fundamentals would dictate.


back to top



A market that is susceptible to an upward correction in price levels. Implies that prices have fallen more than fundamentals would dictate.


back to top


Over the Counter Deliveries

Securities that are delivered by messenger to members and agents against payment. Delivery hours are between 9:00 and 11:30 a.m.


back to top



The practice of allowing illegal concessions by paying substantially more than the market value for one security in order to affect the sale of another.


back to top


Information contained herein is believed to be reliable, but the accuracy and completeness of this material cannot be guaranteed.
Information contained herein is believed to be reliable, but the accuracy and completeness of this material cannot be guaranteed.


> Advanced Search

Contact Us

For all inquiries please contact us

Follow Us

Education and Planning 



You are currently leaving and navigating to a third-party website. Allianz Global Investors Distributors LLC accepts no responsibility for content on third-party sites or for the services provided. When using the services provided by a third-party site, you are subject to that site’s terms of service and privacy rules, which you should review carefully.