“PIPE” stands for “private investment in public equity.” In a PIPE offering, investors commit to purchase a certain number of restricted shares from a company at a specified price. The company agrees, in turn, to file a resale registration statement so that the investors can resell the shares to the public. To the extent that they increase… Continue reading PIPE OFFERINGS
PENSION
Defined benefit plans also are known as pension plans. Employers sponsor defined benefit plans and promise the plan’s investments will provide you with a specified monthly benefit at retirement. The employer bears the investment risks.
OTC BULLETIN BOARD (OTCBB)
The OTC Bulletin Board (OTCBB) (link is external) is an electronic quotation system that displays real-time quotes, last-sale prices, and volume information for many over-the-counter securities that are not listed on a national securities exchange. Brokers who subscribe to the system can use the OTCBB to look up prices or enter quotes for OTC securities. Under the… Continue reading OTC BULLETIN BOARD (OTCBB)
OPTIONS
Options are contracts giving the purchaser the right – but not the obligation — to buy or sell a security at a fixed price within a specific period of time. Stock options are traded on a number of exchanges.
OPERATING EXPENSES
The costs a fund incurs in running the fund, including management fees, distribution fees, and other expenses.
OPEN-END COMPANY
The legal name for a mutual fund. An open-end company is a type of investment company.
OLD STOCK AND BOND CERTIFICATES
An old stock or bond certificate may still be valuable even if it no longer trades under the name printed on the certificate. The company may have merged with another company or simply changed its name. Keep in mind that due to corporate reorganizations (such as splits, mergers, or reverse mergers), the current share price… Continue reading OLD STOCK AND BOND CERTIFICATES
OFFERING DOCUMENT (OR OFFICIAL STATEMENT OR PROSPECTUS)
The disclosure document prepared by a bond issuer that gives detailed financial information about the issuer and the bond offering. Municipal securities issuers must prepare an “Official Statement” before presenting the primary offering. These municipal disclosure documents provide information for investors, including the terms of the bond and financial information on the issuer. They also… Continue reading OFFERING DOCUMENT (OR OFFICIAL STATEMENT OR PROSPECTUS)
NO-LOAD FUND
A fund that does not charge any type of sales load. But not every type of shareholder fee is a “sales load,” and a no-load fund may charge fees that are not sales loads. No-load funds also charge operating expenses.
NO ACTION LETTERS
An individual or entity who is not certain whether a particular product, service, or action would constitute a violation of the federal securities law may request a “no-action” letter from the SEC staff. Most no-action letters describe the request, analyze the particular facts and circumstances involved, discuss applicable laws and rules, and, if the staff… Continue reading NO ACTION LETTERS