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Glossary K-O
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L


last split date
The last date on which the shares of a security were increased or decreased by splitting.

last trade
The price at which the last trade was executed; after market close, this is the closing price.

last trade date and time
The date and time the security was last traded.

limit order
An order instructing a broker to execute an order at a specific price or better. Buy orders are executed at or below limit price. Sell orders are executed at or above limit price.

liquid investment
An investment to be easily converted to cash.

liquid reserve
Personal savings that can be accessed immediately.

load
A purchase or redemption fee charged by a mutual fund. See Back End Load, No Load Mutual Fund and Mutual Funds Glossary.

low
The lowest execution price of a trade that day, or on the last trading day.

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M


margin balance
The net open balance in your margin account. If negative, this is the amount owed to the brokerage firm. If positive, the balance is available to earn interest.

market indicators
A variety of indices that give an indication of the overall direction and strength of the market.

market capitalization
The total value of a company's stock.

market order
Order which instructs a broker to execute an order as quickly as possible at the best price available. During market hours, this means orders for widely traded securities will usually execute at or close to the current quotation. Buy orders will execute at or close to the "ask" price and Sell orders will execute at or close to the "bid" price. If a market order is entered when the market is closed, the order will usually execute at or close to the opening price the NEXT trading day. To prevent entering an order at the market price, one of the following price conditions must be selected: Stop, Limit or Stop Limit.

maturity date
Date at which the face value and final interest payment of a fixed income security (for example, bond or note) is due and payable by the debt issuer. For bonds, maturity can range from one day to 30 years or more.

money market fund
A highly liquid mutual fund that invests in short-term securities and seeks to maintain a stable net asset value of US$1 per share.

mortgage backed Bonds
Bonds that derive their income from a pool of mortgages.

mutual Fund
An investment company that pools money from shareholders and invests in a variety of securities, such as stocks, bonds and money market instruments. Most open-end mutual funds stand ready to buy back (redeem) its shares at their current net asset value, which depends on the total market value of the fund's investment portfolio at the time of redemption. Most open-end mutual funds continuously offer new shares to investors. See Mutual Fund Glossary.

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N


NASDAQ
National Association of Securities Dealer Automated Quotations system, designed to facilitate over-the-counter stock trading.

net asset value (NAV)
The market value of one share of a mutual fund; NAV is calculated once each day or less frequently after market close. This value does not include any sales charges or other fees.

net change
The amount and direction of a security's price change since its previous close.

no-load mutual fund
A mutual fund that does not charge a fee to buy shares of the fund at the time of purchase or at time of sale.

nominal rate
Also known as nominal yield. The percentage of annual interest which would be earned from a fixed income investment (for example, bonds) if the security was purchased at par value; actual rate of return is usually different.

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O


open
The price at which a security opened for trading on a given day.

open end fund
A mutual fund with no limit to the number of shares that can be issued. These shares are purchased directly from the fund company itself, or through a brokerage firm.

option
A contract that permits the owner (depending on the type of option held) to purchase or sell a security at a specific ("strike") price until a specified expiration date. An option to purchase a security is a "call." An option to sell a security is a "put." The price of the option itself is the "premium." You must be pre-approved by Schwab to trade options. See Call Option and Put Option.

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