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National Securities Clearing Corporation
National Securities Clearing Corporation is where virtually every mutual fund and collective fund trade is processed. By receiving an NSCC Cusip a Collective Fund is available to trade with virtually any custodian in the US. (Source: Alta Trust). -
Net Asset Value (NAV)
The NAV is the dollar value of one share of a fund. It’s calculated by totaling the value of all the fund’s holdings plus money waiting investment, subtracting operating expenses, and dividing by the number of outstanding shares. A fund’s NAV changes regularly, though day-to-day variations are usually small. The NAV is the price per share an open-end mutual fund pays when you redeem, or sell back, your shares.... -
OE
see” Open End Mutual Fund -
Open End Mutual Fund
Open-end mutual fund (or open-end fund) is a collective investment vehicle which can issue and redeem shares at any time. An investor will generally purchase shares in the fund directly from the fund itself rather than from the existing shareholders. The price at which shares in an open-ended fund are issued or can be redeemed will vary in proportion to the net asset value of the fund, and therefore directly reflects... -
Passive
An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long-term appreciation and limited maintenance. Also known as a buy-and-hold, passive investing requires good initial research, patience and a well diversified portfolio. Unlike active investors, passive investors buy a security and typically don’t actively attempt to profit from short-term price fluctuations. Passive investors instead rely on their belief that in... -
Passive Management
An index mutual fund or exchange-traded fund is passively managed when the securities in its portfolio change only when the make-up of the index it tracks is changed. For example, an ETF that tracks the Standard & Poor’s 500 Index buys and sells only when the S&P index committee announces which companies have been added to and dropped from the index. In contrast, mutual funds that are actively managed,... -
Pension Protection Act of 2006
An act of legislation that makes a large number of reforms to U.S. pension plan laws and regulations. This law made several pension provisions from the Economic Growth and Tax Relief Reconciliation Act of 2001 permanent, including the increased IRA contribution limits and the increased salary deferral contribution limits to a 401(k). It also attempts to strengthen the overall pension system and reduce the reliance on the federal pension...
