O A NASDAQ stock symbol specifying that it is the company's second class of preferred shares.
Obligor An entity that has an obligation to pay all principal and interest payments on a debt.
October Effect A theory that postulates that stocks will tend to decline during the month of October.
Odd Lot An amount of a security that is less than the normal unit of trading for that particular security.
Odd Lot Theory Atechnical analysis theory/indicator based on the assumption that thesmall individual investor is always wrong. Therefore, if odd lot salesare up - that is small investors are selling stock - it is probably agood time to buy.
Odd Lotter Anindividual investor who buys securities, usually stocks, in oddlots. This is the opposite of someone who buys securities in roundlots.
OEX The ticker symbol for the Standard &; Poor's 100 Index.
Off-Balance-Sheet Financing A way of raising money that does not appear on the balance sheet.
Off-the-run Treasuries AllTreasury bonds and notes issued before the most recently issued bond ornote of a particular maturity. These are the opposite of on-the-runtreasuries.
Offering Circular Anabbreviated prospectus for a new security listing. Delivered toindividuals and brokerage houses, these documents are issued to arouseinterest in the new issue.
Offering Memorandum A legal document stating the objectives, risks, and terms of investment involved with a private placement.
Office Audit An examination of documents by the IRS for a matter that is considered to be reasonably simple.
Office of Foreign Asset Control - OFAC Adepartment of the U.S. Treasury that enforces economic and tradesanctions against countries and groups of individuals involved interrorism, narcotics and other disreputable activities.
Office of Thrift Supervision - OTS Thebureau of the U.S. Treasury Department that is responsible for issuingand enforcing regulations governing the nation's savings and loanindustry.
Offset 1. To liquidate a futures position by entering an equivalent, but opposite, transaction.
2. To offset an initial purchase, a sale is made; to offset an initial sale, a purchase is made.
Offshore Located or based outside of one's national boundaries.
Offshore Mutual Fund A mutual fund that is managed and housed in a foreign country, usually outside the U.S.
OHLC Chart Shortfor "Open, High, Low, Close chart." This is a securities chart thatclearly shows the opening, high, low and closing prices for a security.
Okun's Law A relationship between an economy's GDP gap and the actual unemployment rate.
Old Economy Aterm describing the old blue chip industries which enjoyed fabulousgrowth during the early parts of the century. These companies areusually very traditional in their ways of doing business.
Oligopoly When a particular market is controlled by a small group of firms.
Oligopsony Similarto an oligopoly, but where a small number of large buyers (not sellers)control a large proportion of the market and drive prices down.
Omega Thepercentage change of an option’s value with respect to the percentagechange in the underlying price. It is the third derivative of theoption price, and the derivative of gamma.
Omnibus Account Anaccount between two futures merchants (brokers). It involves thetransaction of individual accounts which are combined in this type ofaccount, allowing for easier management by the futures merchant.
OMR In currencies, this is the abbreviation for the Omani Rial.
On Stream An investment that is on track to earn its expected return.
On Track 1. A type of commodities delivery for futures contracts that is deferred and priced according to the seller's location "FOB."
2. The term used to describe physical commodities that are already loaded on railroad cars or trucks and ready for delivery.
On-Balance Volume - OBV Amethod used in technical analysis to detect momentum, the calculationrelates volume to price change. OBV provides a running total of volumeand shows if this volume is flowing in or out. This indicator wasdeveloped by Joe Granville.
On-the-run Treasuries The most recently issued U.S. Treasury bond or note of a particular maturity. These are the opposite of off-the-run treasuries.
One Night Stand Investment Buyinga security with the intention of holding it for the long term, butsubsequently panicking and selling it the following day.
One-Cancels-the-Other Order - OCO An order stipulating that if one part of the order is executed, then the other part is automatically canceled.
One-sided Market When the market for a security only shows either one bid or one ask.
One-Stop Shop Aterm used to describe a company that can do everything for a person orclient. The idea is to provide convenient and efficient service forpeople.
Online Banking The performance of banking activities via the Internet.
Online Trading Making trades via the Internet.
Open 1. An un-executed order that is still valid.
2. The start of trading on a securities exchange.
Open End Credit A pre-approved loan that may be used repeatedly up to a certain limit.
Open End Fund A mutual fund that continues to sell shares to investors, and will buy back shares when investors wish to sell.
Open Interest 1. The total number of options or futures contracts that are not closed or delivered on a particular day.
2. The number of buy market orders before the stock market opens.
Open Listing A property that is simultaneously marketed by multiple real estate agents.
Open Market Operations Thebuying and selling of government securities in the open market in orderto expand or contract the amount of money in the banking system.Purchases inject money into the banking system and stimulategrowth while sales of securities do the opposite.
Open Market Transaction Anorder placed by an insider, after all appropriate documentation hasbeen filed, to buy or sell restricted securities openly on an exchange.
Open Order An order to buy or sell a security that remains in effect until it is either canceled by the customer or executed.
Open Outcry A method of trading on a commodity exchange by making verbal bids and offers in the trading pits.
Open Rotation Orders to be executed only during the initial trading rotation of the specified day.
Opening Bell A bell that rings to signify the day's start of trading on a securities exchange.
Opening Transaction The initial or primary transaction of an options contract. Rights for a buyer are created as is the obligation of the seller.
Operating Cash Flow - OCF Thecash generated from the operations of a company, generally defined asrevenues less all operating expenses, but calculated through a seriesof adjustments to net income. Also known as "cash flow provided byoperations" or "cash flow from operating activities."
Operating Cash Flow Ratio A measure of how well current liabilities are covered by the cash flow generated by a company's operations.
Operating Earnings Profitsafter subtracting expenses such as marketing, cost of goods sold,administration, and general operating costs from revenue.
Operating Expense The essential things that a company must purchase in order to maintain business.
Operating Income The profit realized from a business' own operations.
Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset.
Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs.
Operating Margin A ratio used to measure pricing strategy and operating efficiency. Calculated by:
Operating Ratio A ratio that shows the efficiency of management. Calculated as:
Opinion Shopping Acompany's action of searching for an auditor who will give a positiveopinion of the company's accounting practices (even though they mightnot deserve it).
Opportunity Cost The difference in return between a chosen investment and one that is necessarily passed up.
Optimized Portfolio as Listed Securities - OPALS A portfolio of securities used to closely track an index without the exposure of purchasing all securities within that index.
Option Aprivilege sold by one party to another that offers the buyer the right,but not the obligation, to buy (call) or sell (put) a security at anagreed-upon price during a certain period of time or on a specificdate.
Option Adjusted Spread - OAS Mainlyused for fixed income products, OAS measures the yield spread that isnot directly attributable to the fixed income's characteristics.
Option Chain A way of quoting options prices through a list of all of the options for a given security.
Option Cycle Apattern of months in which option contracts usually expire (usually anine month period). There are three common cycles:JAJO - January,April, July, and OctoberMJSD - March, June, September, and DecemberFMAN- February, May, August, and November
Options Clearing Corporation - OCC A clearing organization that acts as both the issuer and guarantor for option and futures contracts.
Options Contract One options contract represents one hundred shares in the underlying stock. The quoted price of an option is per share.
Order The instruction, by a customer to a brokerage, for the purchase or sale of a security with specific conditions.
Order Driven An auction market where prices are determined by the publication of orders to buy or sell shares.
Order Flow The directing of orders by a brokerage to different parties to be executed.
Order Splitting Whenbrokers split up larger orders to qualify them for the Small OrderExecution System (SOES) and, therefore, have them automaticallyexecuted.
Ordering Rules The order in which Roth IRA assets are distributed. Assets are distributed from a Roth IRA in the following order:
Orderly Market Any market in which the supply and demand are reasonably equal.
Ordinary and Necessary Expenses - O and NE A tax provision for business expenses, it states that necessary business expenses are fully deductible as current expenses.
Ordinary Annuity A series of fixed payments made at the end of each period over a fixed amount of time.
Ordinary Income Income derived from regular business activities.
Organic Growth The growth rate of a company, excluding any growth from takeovers, acquisitions, or mergers.
Organization for Economic Co-operation and Development - OECD The OECD is a group of 30 member countries who discuss and develop economic and social policy.
Organization of Petroleum Exporting Countries - OPEC Anorganization made up of some of the largest oil-exportingnations who coordinate their petroleum policies to managethe supply of oil in an effort to set the price of oil on theworld market. ; ;
Original Cost All of the costs directly associated with acquiring an asset and putting it into use.
Original Issue Discount - OID Thediscount from par value at the time a bond or other debt instrument isissued. It is the difference between the stated redemption price atmaturity and the issue price.
Origination The making of mortgage loans.
Oscillator Atechnical analysis tool built with the results from a trend indicatorfor discovering short-term overbought or oversold conditions.
Outside Director Any member of a company's board of directors who is not an employee or stakeholder in the company.
Outside Earnings The amount of income an elderly individual under the age of 70 has earned outside of his or her social security benefits.
Outside Reversal A charting trend in which a stock price's high and low for the day exceed those of the preceding day.
Outsourcing Apractice used by different companies to reduce costs by transferringportions of work to outside suppliers rather than completing itinternally.
Outstanding Shares Thenumber of shares that are currently owned by investors. This includesrestricted shares (shares owned by the company's officers and insiders)and shares held by the public. Shares that the company has repurchasedare not considered outstanding stock.
Over the Counter Bulletin Board - OTCBB Anelectronic trading service offered by the NASD. Traditionally home tomany small and micro cap companies, it is considered very high risk.
Over-hedging Lockingin a price, such as through a futures contract, for more goods,commodities or securities that is required to protect aposition. While hedging does protect a position, over-hedging canbe costly in the form of missed opportunities.
Over-The-Counter - OTC Asecurity which is not traded on an exchange, usually due to aninability to meet listing requirements. For such securities,brokers/dealers negotiate directly with one another over computernetworks and by phone. The NASD carefully monitors their activities.
Overadvance When a company obtains a loan in order to increase their inventory prior to an expected increase in sales volume.
Overallotment Selling more securities than are available in an IPO.