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"Uncirculated" refers to the condition of the coin, specifically that it shows no sign of wear from being handled. This doesn't necessarily mean that it is in perfect condition - a coin can have a lot of little dings and nicks (from being put in large bags with other coins - called bag marks - or from the minting process itself) and may not be shiny ("toning" is a chemical process - it's what causes copper coins to turn brown and silver coins to turn black - and can come either from handling or just from the air). There are actually eleven grades of Uncirculated, from MS-60 (Mint State 60), which may be a bit nicked up, up to MS-70, which is theoretical perfection in all aspects (perfect strike, not nicks or dings, great surface, etc.). As a practical matter, the ratings most commonly used are MS-60, MS-63, and MS-65, although more modern coins may grade to MS-67 or MS-68 sometimes.

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Q: What does a uncirculated quarter mean?
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