Glossary

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Odd Lot

    Refers to buying stocks in a quantity that is not a multiple of 100.
Off-Balance-sheet Financing
    Financing that is not shows as a liability in a company's balance sheet.
OID Debt
    Original Issue Discount Debt
Open
    The price at which a security opens the trading day.
Open-End Fund
    A mutual fund that stands ready to redeem stocks and issue new stock.
Open Order
    An order to buy or sell a security that remains in effect until it is either canceled by the customer or executed.
Operating Leverage
    Amount of fixed operating costs.
Opportunity Cost of Capital
    The expected return that is foregone by investing in a project rather than a financial security with comparable risk.
Option
    The choice to take a specific action in the future. The action considered in finance are the purchase (call option) or sale (put option) of an asset.
Out-of-the-money Option
    An option that would not be worth exercising if it matured immediately.
OTC (Over The Counter Market)
    Financial markets that are not located in a single physical area. NASDAQ is an example.
Organized Market
    A central physical location where exchange of securities takes place under a set of rules and regulations. This type of market is also referred to as "Auction Market."
Over-Rewarded
    A security whose expected (average) return is above its required return.
Over-Valued
    An asset whose market value is greater than its intrinsic (formula or theoretical) value.
Overbought
    Typically a reference to a security or the general market after it exhibits a sharp rise in prices.
Oversold
    Opposite of overbought.