Letter O Vocabulary Flashcards
A quantity of stocks that is less than the standard trading unit or board lot.
Odd Lot
The price at which new shares are offered to the public by an issuer.
Offering Price
An office of the U.S. SEC responsible for conducting examinations of regulated entities.
Office of Compliance Inspections and Examinations (OCIE)
A document detailing the terms of a bond offering and the issuer’s financial position.
Official Statement
An investment fund organized outside the jurisdiction of the country where most of its investors reside.
Offshore Fund
The total number of outstanding derivative contracts, like options or futures, that have not been settled.
Open Interest
An order to buy or sell a security that remains effective until it is executed or canceled.
Open Order
A mutual fund that continuously offers its shares to investors and can issue an unlimited number of shares.
Open-End Fund
A measure of profitability showing the percentage of revenue that exceeds operating costs of a business.
Operating Margin
The risk of loss due to failures in processes, systems, people, or external events.
Operational Risk
A financial contract that gives the holder the right, but not the obligation, to buy or sell an asset at a specific price on or before a specific date.
Option
A list of all options available for a specific security, detailing strike prices, expiration dates, and premiums.
Option Chain
The price paid by the buyer to the seller to acquire an option.
Option Premium
The spread added to a benchmark yield curve to make the price of a security equal to its present value.
Option-Adjusted Spread (OAS)
A contract that gives the holder the right to buy or sell an underlying asset at a predetermined price within a set time frame.
Options Contract
A regulation ensuring that trades are executed at the best available price across all exchanges.
Order Protection Rule
The difference between a bond’s face value and its issuance price when it is issued at a discount.
Original Issue Discount (OID)
Describing an option where exercising the right would not be financially beneficial based on the current price of the underlying asset.
Out-Of-The-Money
All shares that are currently held by shareholders, including institutional investors and insiders.
Outstanding Shares
A provision that allows underwriters to sell more shares than initially offered in a public offering.
Over-Allotment
A situation in which the price of an asset is believed to be higher than its intrinsic value, suggesting a potential price decline.
Overbought
A price level at which a stock or market has had difficulty rising above, typically seen on a chart.
Overhead Resistance
A situation where an asset is believed to be priced below its intrinsic value, suggesting a potential price rebound.
Oversold
A decentralized market where trading of securities, including stocks and bonds, is conducted directly between parties without a central exchange.
Over-The-Counter (OTC)
