Glossary of Terms

The information presented here is not intended as financial, investment, tax or legal advice and is provided for educational purposes only.
Offering Price
The price at which one share of a mutual fund may be purchased; it is net asset value per share plus the maximum applicable sales charge.
Office of the Comptroller of the Currency (OCC)
A U.S. federal agency that serves to charter, regulate and supervise the national banks and the federal branches and agencies of foreign banks. The Office of the Comptroller of the Currency (OCC) is headed by the Comptroller of the Currency, who is appointed by the president and approved by the Senate. See Comptroller/OCC.
Open-End Management Company
An investment company that manages a mutual fund that continually offers shares for sale to the public and redeems shares at their current net asset value, which may be higher or lower than the purchase price. Most mutual fund companies are open-end management companies, because they sell and redeem shares of the funds they manage. On occasion, an open-end management company may decide to close itself to new investors, usually when it decides it is too large.
Operating Expenses
The day-to-day costs of running a business paid from a fund's assets before earnings are distributed to shareholders. See Expense Ratios.
The right to buy or sell an investment in the future at a pre-determined price. This right may become valuable depending on market movements.
Ordinary Dividend
A dividend of net investment income or a realized short-term capital gain.