Accounting & Investement Dictionary

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An alphabetical listing of General terms and items.

O   Dico Tools
Fifth letter of a Nasdaq stock symbol specifying that it is the company's second class of preferred shares.

O.K. To Cross   Dico Tools
Used for listed equity securities. "Legal to cross the buy and sell orders on the exchange floor because transactor is not a principal in the transaction."

OAS   Dico Tools
See: Option adjusted spread

OAU   Dico Tools
optimal asset utilization (OAU): A supply-chain metric to gauge the right speed for asset turnover. Operational Asset Utilization (OAU) is identical to asset utilization, except that it excludes demand related losses. Demand related losses are either plant shutdowns or production rate limits that are planned for the purpose of inventory control. The difference between asset utilization and Operational Asset Utilization (OAU) represents available additional capacity for meeting increases in market demand.

Objective   Dico Tools
The fund's investment strategy category as stated in the prospectus. There are more than 20 standardized categories. E.g. Aggressive growth, balanced.

Obligation   Dico Tools
A legal responsibility, such as to repay a debt.

Obligation Bond   Dico Tools
A municipal bond with a face value greater than the value of the underlying property. The difference is designed to compensate the lender for costs exceeding the mortgage value.

Obligor   Dico Tools
A person who has an obligation to pay off a debt.

OCC   Dico Tools
See: Options Clearing Corporation

Odd Lot   Dico Tools
A trading order for less than 100 shares of stock. Compare round lot.

Odd-lot Dealer   Dico Tools
A broker who combines odd lots of securities from multiple buy or sell orders into round lots and executes transactions in those round lots.

Odd-lot Short-sale Ratio   Dico Tools
The percentage of total odd-lot sales that is composed of short sales.

Odd-lot Theory   Dico Tools
The theory that profits can be made by making trades contrary to odd-lot trading patterns, since odd-lot investors have poor timing. This theory is no longer popular.

OEX Index   Dico Tools
Applies to derivative products. Quotron symbol for the S&P 100 index option.

Off-balance-sheet Financing   Dico Tools
Financing that is not shown as a liability on a company's balance sheet.

Off-board   Dico Tools
Used for listed equity securities. Transacted away from a national securities exchange even though the stock itself is listed, such as on the NYSE, and instead of on the OTC market, a regional exchange, or in the third or fourth markets (between customers directly). After 9:30 a.m., if the stock has not opened due to the exchange's discretion, trading can occur elsewhere, but the trader must assume the role of a quasi-specialist in the process.

Off-floor Order   Dico Tools
Used for listed equity securities. (1) Order to buy or sell a security that originates off the floor of an exchange; customer orders originating with brokers, as distinguished from orders placed by floor members trading for their own accounts. Exchange rules require that an off-floor order be executed before orders initiated on the floor. Upstairs order. Antithesis of on-floor order; (2) order not handled on the floor but instead upstairs.

Offer   Dico Tools
Indicates a willingness to sell at a given price. Related: Bid.

Offer Wanted   Dico Tools
Used in the context of general equities. Notice by a potential buyer of a security that he or she is looking for supply from a potential seller of the security, often requiring a capital commitment. Antithesis of bid wanted.

Offering Date   Dico Tools
Date on which a new set of stocks or bonds will first be sold to the public.

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Offering Memorandum   Dico Tools
A document that outlines the terms of securities to be offered in a private placement.

Offering Scale   Dico Tools
The range of prices offered by the underwriter of a serial bond issue with different maturities.

Offerings   Dico Tools
Often refers to initial public offerings. When a firm goes public and makes an offering of stock to the market.

Office Of Thrift Supervision   Dico Tools
An agency of the U.S. Treasury department responsible for the U.S. savings and loan industry.

Official Reserves   Dico Tools
Holdings of gold and foreign currencies by official monetary institutions.

Official Statement   Dico Tools
A statement published by an issuer of a new municipal security describing itself and the issue

Official Unrequited Transfers   Dico Tools
Include a variety of subsidies, military aid, voluntary cancellation of debt, contributions to international organizations, indemnities imposed under peace treaties, technical assistance, taxes, or fines.

Offset   Dico Tools
Elimination of a long or short position by making an opposite transaction. Related: Liquidation.

Offshore Finance Subsidiary   Dico Tools
A wholly owned affiliate incorporated overseas, usually in a tax haven country, whose function is to issue securities abroad for use in either the parent's domestic or foreign business.

OID   Dico Tools
See: Original issue discount debt

Old-line Factoring   Dico Tools
Factoring arrangement that provides collection, insurance, and finance for accounts receivable.

Oligopoly   Dico Tools
A Market characterized by a small number of producers who often act together to control the supply of a particular good and its market price.

Oligopsony   Dico Tools
A Market characterized by a small number of large buyers who control all purchases and therefore the market price of a good or service.

OM Stockholm AB   Dico Tools
The derivatives market of Sweden, trading a wide variety of interest rate and bond futures. The exchange trades futures and options on the OMX equity index.

Omitted Dividend   Dico Tools
A dividend that was scheduled to be declared, but that is not voted by the board of directors probably because the company is experiencing financial difficulties.

Omnibus Account   Dico Tools
An account carried by one futures commission merchant with another futures commission merchant in which the transactions of two or more persons are combined and carried in the name of the originating broker, rather than designated separately. Related: Commission house.

On   Dico Tools
Used in the context of general equities. Conjunction that denotes trade execution /indication, usually during a pre-opening look. "Looks 6 on 6000 shares at opening." See: for/at.

On A Clean Up   Dico Tools
Used in the context of general equities. Willingness to participate in part of a trade if all of the stock available is spoken for except for the "clean up amount."

On Balance   Dico Tools
Used for listed equity securities. Left over after pairing off other market buy and sell orders, usually before the opening of a stock or market but at times at the close (especially during index expirations). See: Imbalance of orders.

On Board   Dico Tools
Used in the context of general equities. Long.

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On The Close Order   Dico Tools
A market order that is to be executed as close as possible to the closing price of the day.

On The Money   Dico Tools
Used in the context of general equities. In-line, or at the same price, as the last sale.

On The Opening Order   Dico Tools
A market order that is to be executed at the price of the first trade of the day.

On The Print   Dico Tools
Used in the context of general equities. To participate in a block trade that has already transpired, as if that customer had been part of the trade originally; often used by a new party looking to participate in a trade that has just happened. See: Open on the print.

On The Run   Dico Tools
The most recently issued (and typically the most liquid) government bond in a particular maturity range.

On The Sidelines   Dico Tools
An investor who decides not to invest due to market uncertainty.

On The Take   Dico Tools
Used in the context of general equities. Price moving upward, because more buyers are taking offerings, causing offerings to vanish and be replaced by higher ones. Antithesis of come in, get hit.

On The Tape   Dico Tools
Used in the context of general equities. (1) Trade printed on the ticker tape; (2) news displayed on Reuters or the Dow Jones News Service.

On-floor Order   Dico Tools
Used for listed equity securities. Security order originating with a member on the floor of an exchange when dealing with his or her own account, versus an upstairs order. Antithesis of off-floor order.

One-decision Stock   Dico Tools
A quality stock that is not actively traded, but rather held for its growth potential.

One-factor APT   Dico Tools
A special case of the arbitrage pricing theory that is derived from the one-factor model by using diversification and arbitrage. It shows that the expected return on any risky asset is a linear function of a single factor.

One-man Picture   Dico Tools
When both bid and the offered prices of a broker come from the same source.

One-share-one-vote Rule   Dico Tools
The principle that all shareholders should have equal voting rights in public companies and each shareholder should have one vote.

One-way Market   Dico Tools
(1) A market in which only one side, the bid or asked, is quoted or firm. (2) A market that is moving strongly in one direction.

OPD   Dico Tools
Tape symbol showing either the first transaction of the day in a security after a delayed opening or the opening transaction in a security whose price has experienced a large rise or fall from the previous day's closing price.

OPEC   Dico Tools
See: Organization of Petroleum Exporting Countries

Open   Dico Tools
Used in the context of general equities. Having either buy or sell interest at the indicated price level and side of a preceding trade. "Open on the buy/sell sid" means looking for buyers/sellers (for someone who is a seller/buyer). Antithesis of clean.

Open (good-till-cancelled) Order (GTC Order)   Dico Tools
Order to buy or sell a security that stays active until it is completed or the investor cancels it.

Open Account   Dico Tools
Arrangement whereby sales are made with no formal debt contract. The buyer signs a receipt, and the seller records the sale in the sales ledger.

Open Book   Dico Tools
See: Unmatched book

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Open Contracts   Dico Tools
Contracts that have been bought or sold without completion of the transaction by subsequent sale or purchase, or by making or taking actual delivery of the financial instrument or physical commodity.

Open Depending On The Floor   Dico Tools
Used for listed equity securities. Having room for a customer buyer or seller contingent on the results of a trade being executed on the floor (i.e., satisfying the specialist book and the orders the trader opened up). See: Open on the print, subject.

Open Interest   Dico Tools
The total number of derivatives contracts traded that have not yet been liquidated either by an offsetting derivative transaction or by delivery. Related: Liquidation.

Open On The Print   Dico Tools
Used in the context of general equities. Block trader's term for a block trade that has been completed with an institutional client and printed on the consolidated tape, but leaves the block trader with stock available (because the trader has taken a long or short position to complete the trade) for new customers who are on the opposite side of the market to the initiating customer.

Open Position   Dico Tools
A net long or short position whose value will change with a change in prices.

Open Repo   Dico Tools
A repurchase agreement with no definite term. The agreement is made on a day-to-day basis, and either the borrower or the lender may choose to terminate. The rate paid is higher than on overnight repo and is subject to adjustment if rates move.

Open Transaction   Dico Tools
A transaction that is not completed at the end of the accounting period; a purchase that has not yet been paid for or a sale where payment is yet to be collected when the accounting period ends.

Open Up   Dico Tools
Used in the context of general equities. Disclose more information (e.g., the exact price and quantity of one's potential interest). See: Put pants on it.

Open-end Credit   Dico Tools
Revolving line of credit that is extended with every purchase or cash advance.

Open-end Fund   Dico Tools
Used in the context of general equities. Mutual fund that continually creates new shares on demand. Mutual fund shareholders buy the funds at net asset value and may redeem them at any time at the prevailing market prices. Antithesis of closed-end fund.

Open-end Lease   Dico Tools
A lease agreement that provides for an additional payment at the expiration of the lease to adjust for any change in the value of the property.

Open-end Mortgage   Dico Tools
Mortgage against which additional debts may be issued. Related: Closed-end mortgage.

Open-market Operation   Dico Tools
Purchase or sale of government securities by the monetary authorities to increase or decrease the domestic money supply.

Open-market Purchase Operation   Dico Tools
A systematic program of repurchasing shares of stock in market transactions at current market prices, in competition with other prospective investors.

Open-market Rates   Dico Tools
Interest rates that are determined in the open market by supply and demand, as opposed to being set by the Federal Reserve Board.

Open-outcry   Dico Tools
The method of trading used at futures exchanges, typically involving calling out the specific details of a buy or sell order, so that the information is available to all traders.

Opening   Dico Tools
The period at the beginning of the trading session officially designated by an exchange, during which all transactions are considered made "at the opening." Related: Close.

Opening Price   Dico Tools
The range of prices at which the first bids and offers are made or the first transactions are completed on an exchange.

Opening Purchase   Dico Tools
Creation of or increase in a long position in a given series of options.

Opening Sale   Dico Tools
Creation of or increase in a short position in a given series of options.

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Opening Transaction   Dico Tools
Applies to derivative products. (1)Buy or sell transaction that creates a position out of a flat one (writing an option short or buying an option long). Antithesis of closing transaction. (2) First transaction of the day in a stock.

Operating Activities   Dico Tools
Transactions and events that enter into the determination of net income.

Operating Assets   Dico Tools
Long-term, or noncurrent, assets acquired for use in the business rather than for resale; includes property, plant, and equipment; intangible assets; and natural resources.

Operating Cash Flow   Dico Tools
Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements.

Operating Cycle   Dico Tools
The average time between the acquisition of materials or services and the final cash realization from that acquisition.

Operating Exposure   Dico Tools
Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows.

Operating In The Red   Dico Tools
Doing business while losing money.

Operating Lease   Dico Tools
A simple rental agreement.

Operating Leverage   Dico Tools
The extent to which fixed costs are part of a company's cost structure; the higher the proportion of fixed costs, the faster income increases or decreases with sales volumes.

Operating Performance Ratio   Dico Tools
An overall measure of the efficiency of operations during a period; computed by dividing net income by net sales.

Operating Profit   Dico Tools
Revenue from a firm's regular activities less costs and expenses and before income deductions.

Operating Profit Margin   Dico Tools
The ratio of operating profit to net sales.

Operating Rate   Dico Tools
The percentage of total production capacity of a company, industry, or country that is being used.

Operating Ratio   Dico Tools
A ratio that measures a firm's operating efficiency.

Operating Risk   Dico Tools
The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk.

Operationally Efficient Market   Dico Tools
Market in which investors can obtain transactions services that reflect the true costs associated with furnishing those services. Also called an internally efficient market.

Operations Department   Dico Tools
See: Back office.

Opinion Shopping   Dico Tools
Attempts by a corporation to attain reporting objectives by following questionable accounting principles, with the help of an auditor willing to sanction the practices. Prohibited by the SEC.

OPM   Dico Tools
Stands for "other people's money," which refers to borrowed funds used to increase the return on invested capital.

Oporto   Dico Tools
Portugal's derivatives exchange (Bolsa de Derivados do Oporto) trading futures on the ten-year government bond, Portuguese stock index, and three-month interbank deposit rate LISBOR (Lisbon Interbank Offered Rate).

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Opportunity Cost   Dico Tools
The opportunity cost of a choice is the value of the best alternative given up.

Opportunity Cost Of Capital   Dico Tools
Expected return that is forgone by investing in a project rather than in comparable financial securities.

Opportunity Costs   Dico Tools
The difference in the performance of an actual investment and a desired investment adjusted for fixed costs and execution costs. When not all desired trades can be implemented. Most valuable alternative that is given up.

Opportunity Set   Dico Tools
The possible expected return and standard deviation pairs of all portfolios that can be constructed from a given set of assets.

Optimal Contract   Dico Tools
The contract that balances the three types of agency costs (contracting, monitoring, and misbehavior) against one another to minimize the total cost.

Optimal Portfolio   Dico Tools
An efficient portfolio most preferred by an investor because its risk/reward characteristics approximate the investor's utility function. A portfolio that maximizes an investor's preferences with respect to return and risk.

Optimal Redemption Provision   Dico Tools
Provision of a bond indenture that governs the issuer's ability to call the bonds for redemption prior to their scheduled maturity date.

Optimization Approach To Indexing   Dico Tools
An approach to indexing that seeks to optimize some objective, such as to maximize the portfolio yield, to maximize convexity, or to maximize expected total returns.

Optimum Capacity   Dico Tools
The amount of manufacturing output that creates the lowest cost per unit.

Option   Dico Tools
Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date. Investors, not companies, issue options. Buyers of call options bet that a stock will be worth more than the price set by the option (the strike price), plus the price they pay for the option itself. Buyers of put options bet that the stock's price will drop below the price set by the option. An option is part of a class of securities called derivatives, which means these securities derive their value from the worth of an underlying investment.

Option Account   Dico Tools
A brokerage account that is approved to hold option positions or trades.

Option Agreement   Dico Tools
A form that an options investor opening an option account fills out guarantees the investor will follow trading regulations and has the financial resources to settle possible losses.

Option Cycle   Dico Tools
The cycle of option expiration months. The most common cycles are: January, April, July, and October (JAJO); February, May, August, and November (FMAN); and March, June, September, and December (MJSD).

Option Elasticity   Dico Tools
The percentage increase in an option's value, given a 1 percentage point change in the value of the underlying security.

Option Holder   Dico Tools
A person who has an option that has not been exercised.

Option Margin   Dico Tools
The margin requirement for options described in Regulation T and in brokers' individual policies.

Option Mutual Fund   Dico Tools
A mutual fund that buys and sells options for aggressive or conservative investment.

Option Not To Deliver   Dico Tools
In the mortgage pipeline, an additional hedge placed in tandem with the forward or substitute sale.

Option Premium   Dico Tools
The option price.

Option Price   Dico Tools
Also called the option premium; the price the buyer of the options contract pays for the right to buy or sell a security at a specified price in the future.

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Option Seller   Dico Tools
Also called the option writer; the party who grants a right to trade a security at a given price in the future.

Option Series   Dico Tools
A group of options on the same underlying security with the same exercise price and maturity month.

Option Spread   Dico Tools
The trading of options of the same class at the same time in order to profit from changes in the size of the spread between different options.

Option Writer   Dico Tools
See: Option seller

Option-adjusted Spread   Dico Tools
(1) The spread over an issuer's spot rate curve, developed as a measure of the yield spread that can be used to convert dollar differences between theoretical value and market prices. (2) The cost of the implied call embedded in an MBS, defined as additional basis-yield spread. When added to the base yield spread of an MBS without an operative call produces the option-adjusted spread.

Optional Dividend   Dico Tools
A dividends that the shareholder can elect to receive either in cash or in stock.

Optional Payment Bond   Dico Tools
A bond whose principal and/or interest may be paid in foreign or domestic currency at the discretion of the bondholder.

Options Clearing Corporation   Dico Tools
Applies to derivative products. Financial institution that is the actual issuer and guarantor of all listed option contracts.

Options Contract   Dico Tools
A contract that, in exchange for the option price, gives the option buyer the right, but not the obligation, to buy (or sell) a financial asset at the exercise price from (or to) the option seller within a specified time period, or on a specified date (expiration date).

Options Contract Multiple   Dico Tools
A constant, set at $100, that when multiplied by the cash index value gives the dollar value of the stock index underlying an option. That is the dollar value of the underlying stock index = Cash index value x $100 (the options contract multiple).

Options On Physicals   Dico Tools
Interest rate options written on fixed income securities, as opposed to those written on interest rate futures contracts.

Or Better   Dico Tools
Used in the context of general equities. Indication on the order ticket of a limit order to buy or sell securities at a price better than the specified limit price if a better price can be obtained. Does not imply a not-held order, but rather puts more emphasis on executing at the limit if available.

Oral Contract   Dico Tools
A contract not recorded on paper or on computer, buy made vocally which is usually enforceable.

Order   Dico Tools
Instruction to a broker/dealer to buy, sell, deliver, or receive securities or commodities that commits the issuer of the "order" to the terms specified. See: indication, inquiry, bid wanted, offer wanted.

Order Imbalance   Dico Tools
Orders of one kind for a stock not offset by the opposite orders, which causes a wide spread between bid and offer prices.

Order Room   Dico Tools
The brokerage firm department receives and processes all orders to buy and sell securities.

Order Splitting   Dico Tools
Breaking up orders so that they can be processed as small orders for execution by SOES. Prohibited by NASD.

Order Ticket   Dico Tools
A form detailing an order instruction that a customer gives an account executive.

Ordinary Income   Dico Tools
The income derived from the regular operating activities of a firm or individual.

Ordinary Interest   Dico Tools
Interest based on a 360-day year instead of a 365-day year, resulting in what can be a significant difference.

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Ordinary Shares   Dico Tools
Apples mainly to international equities. Shares of non-U.S. companies traded in their individual home markets. Usually cannot be delivered in the U.S. See: ADR.

Organization Chart   Dico Tools
A chart showing the hierarchical interrelationships of positions within an organization.

Organization Of Petroleum Exporting Countries   Dico Tools
A cartel of oil-producing countries.

Organizational Structure   Dico Tools
Lines of authority and responsibility.

Organized Exchange   Dico Tools
A securities marketplace where purchasers and sellers regularly gather to trade securities according to the formal rules adopted by the exchange.

Original Face Value   Dico Tools
The principal amount of a mortgage as of its issue date.

Original Issue Discount Debt   Dico Tools
Debt that is initially offered at a price below par.

Original Margin   Dico Tools
The margin needed to cover a specific new position. Related: Margin, security deposit (initial).

Original Maturity   Dico Tools
Maturity at issue. For example, a five-year note has an original maturity of five years; one year later it has a maturity of four years.

Origination   Dico Tools
The making of mortgage loans.

Originator   Dico Tools
A bank, savings and loan, or mortgage banker that initially made a mortgage loan that is part of a pool. Also, an investment bank that has worked with the issuer of a new securities offering from the beginning and is usually appointed manager of the underwriting syndicate.

Orphan Stock   Dico Tools
A stock that is ignored by research analysts and as a result may be trading at low price earnings ratios.

Oslo Stock Exchange   Dico Tools
An exchange founded in 1819 and trading stocks, bonds, and stock options that is considered the options market of Norway.

OTC Bulletin Board   Dico Tools
An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system.

OTC Margin Stock   Dico Tools
Shares traded over-the-counter that can be used as margin securities under Regulation T.

Other Capital   Dico Tools
In the balance of payments, other capital is a residual category that groups all the capital transactions that have not been included in direct investment, portfolio investment, and reserves categories. It is divided into long-term capital and short-term capital and, because of its residual status, can differ from country to country. Generally speaking, other long-term capital includes most nonnegotiable instruments of a year or more, like bank loans and mortgages. Other short-term capital includes financial assets that can be liquidated in less than a year such as currency, deposits, and bills.

Other Current Assets   Dico Tools
Value of noncash assets, including prepaid expenses and accounts receivable, due within one year.

Other Income   Dico Tools
Income from activities that are not undertaken in the ordinary course of a firm's business.

Other Long-term Liabilities   Dico Tools
Value of leases, future employee benefits, deferred taxes, and other obligations not requiring interest payments that must be paid over a period of more than one year.

Other Revenues And Expenses   Dico Tools
Items incurred or earned from activities that are outside, or peripheral to, the normal operations of a firm.

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Other Sources   Dico Tools
Amount of funds generated during the period from operations by sources other than depreciation or deferred taxes. Part of free cash flow calculation.

Out   Dico Tools
Used in the context of general equities. (1) No longer obligated to an order, as it has already been cancelled: (2) advertised on Autex.

Out Of Line   Dico Tools
A stock price that is too high or too low in comparison with similar-quality stocks in the same industry, according to its price/earnings ratio.

Out Of Print   Dico Tools
Not open on the print. See: Clean.

Out Of The Name   Dico Tools
Used in the context of general equities. To no longer have an active trading profile/position in the stock.

Out There   Dico Tools
Used in the context of general equities. Indication gained from their trading and inquiry activity that buyers and/or (more often) sellers are in the market and should be found to get their order. "Feels like IBM is 'out there'."

Out With   Dico Tools
Used in the context of general equities. Showing of an inquiry to another broker by a customer ("he's out with....").

Out-of-favor Industry Or Stock   Dico Tools
An unpopular industry or stock that usually has a low price-earnings ratio.

Out-of-the-money Option   Dico Tools
A call option is out of the money if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is not valuable. A put option is out of the money if the strike price is lower than the market price of the underlying security.

Outright Rate   Dico Tools
Actual forward rate expressed in dollars per currency unit, or vice versa.

Outside Director   Dico Tools
A director of a company who is not an employee of that company and brings in outside experience to help make board decisions.

Outside Market   Dico Tools
Used in the context of general equities. Outside the inside market (above the lowest offering and below the highest bid).

Outside Of You   Dico Tools
Used for listed equity securities. Another order bidding for or offering stock at the same price that the trader has put on the floor himself, represented by another broker in the trading crowd. These orders may have different price limits (possible top or low on floor mentioned to floor broker but not announced in the crowd). See: Matching orders.

Outsourcing   Dico Tools
Purchasing a significant percentage of intermediate components from outside suppliers.

Outstanding   Dico Tools
Used in the context of general equities. Stock held by shareholders (verses the company's treasury stock).

Outstanding Share Capital   Dico Tools
Issued share capital less the par value of shares that are held as the company's treasury stock.

Outstanding Shares   Dico Tools
Shares that are currently owned by investors.

Outstanding Stock   Dico Tools
Issued stock that is still being held by investors.

Over-the-counter   Dico Tools
A decentralized market (as opposed to an exchange market) where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. The NASDAQ market is an OTC market for U.S. stocks. Antithesis of listed.

Overage   Dico Tools
Apples mainly to convertible securities. Difference between how much common stock one party must sell and the other wishes to buy for the same amount of convertible in a swap.

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Overall Market Price Coverage   Dico Tools
Total assets less intangibles divided by the total of the market value of the security issue and the book value of liabilities and issues having a prior claim. This is used to determine how much of the market value of a certain class of securities would be covered in liquidation.

Overbought   Dico Tools
Used in the context of general equities. Technically too high in price, and hence a technical correction is expected. See: Heavy. Antithesis of oversold.

Overbought-oversold Indicator   Dico Tools
An indicator that attempts to define when prices have moved too far and too fast in either direction and thus are vulnerable to reaction.

Overdraft   Dico Tools
Lack of sufficient funds to cover the full amount of a check.

Overdraft Protection   Dico Tools
Procedure agreed upon by an account holder and a bank in advance to transfer funds from a savings or credit account to a checking account to cover insufficient funds.

Overfunded Pension Plan   Dico Tools
A pension plan that has a positive surplus (i.e., assets exceed liabilities).

Overhang   Dico Tools
Used in the context of general equities. Sizable block of securities or commodities contracts that, if released on the market, would put downward pressure on prices; prohibits buying activity that would otherwise translate into upward price movement. Examples include shares held in a dealer's inventory, a large institutional holding, a secondary distribution still in registration, and a large commodity position about to be liquidated.

Overhead   Dico Tools
The expenses of a business that are not attributable directly) the production or sale of goods.

Overheating   Dico Tools
An economy that is growing very quickly, with the risk of high inflation.

Overissue   Dico Tools
An excess of issued shares over authorized shares.

Overlap The Market   Dico Tools
Used in the context of general equities. Create a crossed market by expressing a willingness to sell on the bid side of the market and buy on the offer side.

Overlapping Debt   Dico Tools
The portion of debt of political subdivisions or neighboring special districts that a municipality is responsible for.

Overlay Strategy   Dico Tools
A strategy of using futures for asset allocation by pension sponsors to avoid disrupting the activities of money managers.

Overnight Delivery Risk   Dico Tools
A risk brought about because differences in time zones between settlement centers require that payment or delivery on one side of a transaction be made without knowing until the next day whether the funds have been received in an account on the other side. Particularly apparent when delivery takes place in Europe for payment in dollars in New York.

Overnight Position   Dico Tools
A broker-dealer's position in a security at the end of a trading day.

Overnight Repo   Dico Tools
A repurchase agreement with a term of one day.

Overperform   Dico Tools
To appreciate at a rate faster than appreciation of the overall market.

Overreaching   Dico Tools
Used in the context of general equities. Creating artificial volume in a stock through activity not generated by normal/natural buyers and sellers in the market.

Overreaction Hypothesis   Dico Tools
The supposition that investors overreact to unanticipated news, resulting in exaggerated movements in stock prices followed by corrections.

Overshooting   Dico Tools
The tendency of a pool of MBS to reflect an especially high rate of prepayments the first time it crosses the threshold for refinancing, especially if two or more years have passed since the date of issue without the weighted average coupon of the pool crossing the refinancing threshold.

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Oversold   Dico Tools
Used in the context of general equities. Technically too low in price, and hence a technical correction is expected. Antithesis of overbought.

Oversubscribed Issue   Dico Tools
Investors are not able to buy all the shares or bonds they want, so underwriters must allocate the shares or bonds among investors. This occurs when a new issue is underpriced or in great demand because of growth prospects.

Oversubscription Privilege   Dico Tools
In a rights issue, arrangement by which shareholders are given the right to apply for any shares that are not taken up.

Overtrading   Dico Tools
Excessive broker trading in a discretionary account. Underwriters persuade brokerage clients to purchase some part of a new issue in return for the purchase by the underwriter of other securities from the clients at a premium. This premium is offset by the underwriting spread.

Overvalued   Dico Tools
A stock price that is seen as too high according to the company's price-earnings ratio, expected earnings, or financial condition.

Overwithholding   Dico Tools
Deducting and paying too much tax that may be refunded to the taxpayer or applied against the next period's obligation.

Overwriting   Dico Tools
A speculative options strategy that involves selling call or put options on stocks that are believed to be overpriced or underpriced; the options are expected not to be exercised.

Owner's Equity   Dico Tools
Paid-in capital plus donated capital plus retained earnings less liabilities.

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