| Term | Definition |
|---|---|
| Obamanomics | The economic policies of Barack Obama |
| Obelisk Consensus Algorithm | A consensus mechanism used in blockchain technology |
| Objective Probability | Probability based on observed frequencies |
| Obligation | A duty or commitment |
| Obligatory Reinsurance | Reinsurance that the ceding company is required to purchase |
| Obligor | A party who is obligated to perform under a contract |
| Obsolescence Risk | The risk that an asset will become outdated |
| Obsolete Inventory | Inventory that is no longer saleable |
| Occupancy Rate | The percentage of available units that are occupied |
| Occupational Labor Mobility | The movement of workers between occupations |
| Occupational Safety And Health Act | A U.S. law that ensures workplace safety |
| Occurrence Policy | An insurance policy that covers events that occur during the policy period |
| Ocean Bills of Lading | Bills of lading for goods transported by sea |
| October Effect | The tendency for stock prices to decline in October |
| Odd Lot | A number of shares that is less than a round lot |
| Odd Lot Theory | A technical analysis theory |
| Odious Debt | Debt incurred by a government that is not used for the benefit of the people |
| OEX | S&P 100 Index |
| Off-Balance Sheet (OBS) | Activities that are not recorded on a company’s balance sheet |
| Off-Balance Sheet Financing (OBSF) | Financing that is not recorded on a company’s balance sheet |
| Off-Chain Transactions (Cryptocurrency) | Transactions that occur outside of the blockchain |
| Off-the-Run Treasuries | Treasury securities that are not the most recently issued |
| Offensive Competitive Strategy | A strategy that aims to gain market share from competitors |
| Offer | A proposal to enter into a contract |
| Offer in Compromise | An agreement with the IRS to pay less than the full amount of taxes owed |
| Offering | The process of selling securities to the public |
| Offering Circular | A document that describes a securities offering |
| Offering Memorandum | Same as Offering Circular |
| Offering Price | The price at which securities are offered to the public |
| Office of Foreign Asset Control (OFAC) | A U.S. government agency that administers economic sanctions |
| Office of the Comptroller of the Currency (OCC) | A U.S. government agency that regulates banks |
| Office of the Superintendent of Financial Institutions (OSFI) | A Canadian government agency that regulates financial institutions |
| Office of Thrift Supervision (OTS) | A former U.S. government agency that regulated thrifts |
| Official Settlement Account | An account used to settle securities transactions |
| Official Strike | A strike authorized by a labor union |
| Offline Debit Card | A debit card that requires a PIN |
| Offset | To balance or counteract |
| Offset Mortgage | A mortgage that allows borrowers to offset their savings against the loan balance |
| Offsetting Transaction | A transaction that reduces or eliminates risk |
| Offshore | Located in a foreign country |
| Offshore Banking Unit (OBU) | A bank that operates in a foreign country |
| Offshore Mutual Fund | A mutual fund domiciled in a foreign country |
| Offshore Portfolio Investment Strategy (OPIS) | An investment strategy that involves investing in foreign securities |
| Offtake Agreement | An agreement to purchase a specified amount of a product |
| OHLC Chart | A type of chart used in technical analysis |
| Oil ETF | An exchange-traded fund that tracks oil prices |
| Oil Field | An area where oil is extracted |
| Oil Initially In Place (OIIP) | The estimated amount of oil in a reservoir |
| Oil Pollution Act of 1990 | A U.S. law related to oil spills |
| Oil Price to Natural Gas Ratio | The ratio of oil prices to natural gas prices |
| Oil Refinery | A facility that processes crude oil |
| Oil Reserves | Estimated amounts of oil that can be extracted |
| Oil Sands | Deposits of sand containing bitumen |
| Okun’s Law | A relationship between unemployment and economic growth |
| Old-Age, Survivors, and Disability Insurance (OASDI) Program | A U.S. government program that provides benefits to retirees, survivors, and disabled individuals |
| Old Economy | A term used to describe the economy before the rise of the internet |
| Old Lady | Nickname for the Bank of England |
| Oligopoly | A market structure with a small number of sellers |
| Oligopsony | A market structure with a small number of buyers |
| Ombudsman | A person who investigates complaints |
| Omega | A measure of an option’s leverage |
| Omnibus Account | A brokerage account that holds funds for multiple clients |
| Oman Rial (OMR) | The currency of Oman |
| On Account | A purchase made on credit |
| On-Balance Volume (OBV) | A technical indicator |
| On-Chain Governance | A system for governing a blockchain |
| On-the-Run Treasury | The most recently issued Treasury security |
| On-the-Run Treasury Yield Curve | A yield curve based on on-the-run Treasury securities |
| On-Us Item | A check drawn on the same bank |
| One Bank Holding Company | A holding company that owns only one bank |
| One Belt One Road (OBOR) | A Chinese initiative to build infrastructure in Asia and Europe |
| One-Cancels-the-Other Order (OCO) | An order that cancels another order when it is executed |
| One-Child Policy | A former population control policy in China |
| One Night Stand Investment | A short-term investment |
| One Percent Rule | A real estate investment rule of thumb |
| One-Stop Shop | A business that offers a wide range of products or services |
| One-Tailed Test | A statistical test |
| One-Third Rule | A rule of thumb for personal finance |
| One-Time Charge | A one-time expense |
| One-Time Item | Same as One-Time Charge |
| One-Touch Option | An option that pays out if the underlying asset reaches a certain price |
| OneCoin | A cryptocurrency |
| Onerous Contract | A contract that is burdensome or unfair |
| Online Banking | Banking transactions conducted online |
| Online Shoplifting | Stealing goods from an online store |
| Online-to-Offline (O2O) Commerce | Commerce that combines online and offline channels |
| Ontario Securities Commission (OSC) | A Canadian securities regulator |
| Ontario Teachers’ Pension Plan Board (OTPPB) | A Canadian pension fund |
| Opaque Pricing | Pricing that is not transparent |
| Opco | Operating company |
| Operating Company/Property Company Deal (OPCO or PROPCO) | A real estate transaction structure |
| OPEC Basket | The average price of crude oil from OPEC countries |
| Open | The beginning of a trading session |
| Open Architecture | A system that allows for the use of different components |
| Open Banking | The sharing of banking data with third-party providers |
| Open Cover | An insurance policy that covers a range of risks |
| Open-End Credit | A line of credit that can be used repeatedly |
| Open-End Fund | A mutual fund that can issue new shares |
| Open-End Lease | A lease where the lessee may have to pay a residual value at the end of the lease |
| Open-End Management Company | Same as Open-End Fund |
| Open-End Mortgage | A mortgage that allows the borrower to borrow additional funds |
| Open Ended Investment Company (OEIC) | Same as Open-End Fund |
| Open House | A showing of a property for sale |
| Open Interest | The total number of outstanding contracts |
| Open Kimono | A policy of transparency |
| Open Listing | A listing agreement that allows the seller to work with multiple brokers |
| Open Loop Card | A payment card that can be used at multiple merchants |
| Open Market | The market for buying and selling securities |
| Open Market Operations | Actions taken by a central bank to influence the money supply |
| Open-Market Rate | The interest rate in the open market |
| Open-Market Transaction | A transaction in the open market |
| Open Mouth Operations | Communication by a central bank to influence market expectations |
| Open Offer | An offer to buy securities from existing shareholders |
| Open Order | An order to buy or sell a security that remains in effect until it is executed or canceled |
| Open Outcry | A method of trading on an exchange |
| Open Position | A trade that has not been closed out |
| Open Source | Software that is freely available |
| Open Trade Equity (OTE) | The difference between the market value of a property and the outstanding loan balance |
| Opening Bell | The bell that signals the start of trading |
| Opening Cross | The price at which a security opens trading |
| Opening Imbalance Only Order (OIO) | An order that is executed only if there is an order imbalance at the opening |
| Opening Price | The price at which a security first trades during a trading session |
| Opening Range | The range of prices during the first hour of trading |
| Operating Activities | The day-to-day activities of a business |
| Term | Definition |
|---|---|
| Operating Cash Flow Demand (OCFD) | A measure of a company’s need for cash from operations |
| Operating Cash Flow Margin | A measure of a company’s profitability |
| Operating Cash Flow Ratio | A measure of a company’s ability to meet its short-term obligations |
| Operating Cost | The cost of running a business |
| Operating Earnings | Earnings from operations |
| Operating Expense | Expenses incurred in running a business |
| Operating Expense Ratio | A measure of a fund’s expenses |
| Operating Income | Income from operations |
| Operating Income Before Depreciation and Amortization (OIBDA) | Operating income before depreciation and amortization |
| Operating Lease | A lease that is not a capital lease |
| Operating Leverage | The extent to which a business uses fixed costs |
| Operating Loss (OL) | A loss from operations |
| Operating Margin | A measure of profitability |
| Operating Profit | Same as Operating Income |
| Operating Ratio (OPEX) | A measure of a company’s efficiency |
| Operating Revenue | Revenue from operations |
| Operation Twist | A monetary policy operation |
| Operational Efficiency | The ability to produce goods or services at a low cost |
| Operational Risk | The risk of losses due to operational failures |
| Operational Target | A target for monetary policy |
| Operations Management | The management of the production process |
| Opportunity Cost | The cost of the next best alternative |
| Oprah Effect | The impact of Oprah Winfrey’s endorsements |
| Optimal Capital Structure | The capital structure that minimizes the cost of capital |
| Optimal Currency Area | A geographic region where a single currency is optimal |
| Optimization | The process of finding the best solution |
| Optimized Portfolio As Listed Securities (OPALS) | A type of investment portfolio |
| Optimum Currency Area (OCA) Theory | A theory about the conditions under which a single currency is optimal |
| Option Adjustable-Rate Mortgage (Option ARM) | A mortgage with flexible payment options |
| Option-Adjusted Spread (OAS) | A measure of the risk of a bond with embedded options |
| Option Agreement | An agreement that gives the buyer the right to buy or sell an asset |
| Option Chain | A list of available options for a particular asset |
| Option Class | All options of the same type on the same underlying asset |
| Option Cycle | The period between option expirations |
| Option Disclosure Document | A document that describes the risks of options trading |
| Option Margin | The amount of money required to be deposited in a margin account for options trading |
| Option Pool | Shares reserved for employee stock options |
| Option Premium | The price of an option |
| Option Pricing Theory | A theory about how options are priced |
| Option Series | All options of the same type, class, and expiration date |
| Optionable Stock | A stock that has options traded on it |
| Options | Financial contracts that give the buyer the right, but not the obligation, to buy or sell an asset |
| Options Backdating | The practice of illegally manipulating the date of stock options grants |
| Options Clearing Corporation (OCC) | An organization that clears and guarantees options trades |
| Options Contract | An agreement between a buyer and a seller of an option |
| Options Industry Council (OIC) | A trade association for the options industry |
| Options on Futures | Options contracts on futures contracts |
| Options Price Reporting Authority (OPRA) | An organization that disseminates options price information |
| Oracle of Omaha | Warren Buffett |
| Oral Contract | A contract that is not in writing |
| Orange Book | A publication by the UK Debt Management Office |
| Order | An instruction to buy or sell a security |
| Order Audit Trail System (OATS) | A system for tracking orders |
| Order Book | A record of outstanding orders |
| Order Driven Market | A market where prices are determined by buy and sell orders |
| Order Imbalance | A situation where there are more buy orders than sell orders, or vice versa |
| Order Management Systems (OMS) | Systems used to manage orders |
| Order Paper | A document used in parliamentary procedure |
| Order Protection Rule | A rule that requires brokers to route orders to the exchange with the best price |
| Orderly Market | A market where prices are stable |
| Ordinary and Necessary Expense (O&NE) | A business expense that is common and helpful |
| Ordinary Annuity | An annuity where payments are made at the end of each period |
| Ordinary Dividends | Dividends paid out of a company’s earnings |
| Ordinary Income | Income that is not capital gains |
| Ordinary Loss | A loss that is not a capital loss |
| Ordinary Shares of Stock | Common stock |
| Organic Growth | Growth that is achieved through internal means |
| Organic Reserve Replacement | Replacing oil and gas reserves through exploration and development |
| Organic Sales | Sales growth excluding acquisitions |
| Organisation of Eastern Caribbean States (OECS) | An intergovernmental organization |
| Organisation for Economic Co-operation and Development (OECD) | An international organization |
| Organization of Arab Petroleum Exporting Countries (OAPEC) | An intergovernmental organization |
| Organization of the Petroleum Exporting Countries (OPEC) | An intergovernmental organization |
| Organizational Behavior (OB) | The study of human behavior in organizations |
| Organizational Chart | A diagram that shows the structure of an organization |
| Organizational Economics | The study of how organizations are structured and how they function |
| Organizational Structure | The way in which an organization is structured |
| Organized Labor | Labor unions |
| Original Cost | The cost of an asset when it was first acquired |
| Original Equipment Manufacturer (OEM) | A company that manufactures products that are used in other products |
| Original Face | The original value of a bond |
| Original Issue Discount (OID) | The difference between the face value of a bond and its issue price |
| Origination | The process of creating a new loan |
| Origination Fee | A fee charged for originating a loan |
| Origination Points | Points paid to a lender at the closing of a loan |
| Orphan Block | A block in a blockchain that is not connected to the main chain |
| Orphan Drug Credit | A tax credit for developing drugs for rare diseases |
| Oscillator | A technical indicator |
| Oscillator of a Moving Average (OsMA) | A technical indicator |
| Oslo Stock Exchange (OSL) | A stock exchange in Norway |
| OTC Markets Group Inc. | A company that operates over-the-counter markets |
| OTC Options | Options that are traded over-the-counter |
| OTC Pink | A market for very small, thinly traded companies |
| OTCQB (The Venture Market) | A market for small companies |
| OTCQX | A market for established companies |
| Other Comprehensive Basis of Accounting (OCBOA) | A set of accounting principles other than GAAP |
| Other Current Assets (OCA) | Current assets other than cash, accounts receivable, and inventory |
| Other Current Liabilities | Current liabilities other than accounts payable and short-term debt |
| Other Long-Term Liabilities | Long-term liabilities other than bonds payable |
| Other Post-Employment Benefits (OPEB) | Benefits provided to employees after they retire |
| Other Post-Retirement Benefits | Same as Other Post-Employment Benefits |
| Other Real Estate Owned (OREO) | Real estate owned by a lender as a result of foreclosure |
| Out-of-Pocket Expenses | Expenses paid directly by an individual |
| Out-of-Pocket Limit | The maximum amount an individual has to pay for healthcare expenses |
| Out of The Money (OTM) | An option that has no intrinsic value |
| Outcome Bias | The tendency to judge a decision based on its outcome rather than the process |
| Outlay Cost | A direct cost |
| Outperform | To perform better than expected |
| Outplacement | Assistance provided to employees who have been laid off |
| Output Gap | The difference between actual and potential GDP |
| Outright Forward | A forward contract |
| Outright Futures Position | A futures contract |
| Outright Option | An option contract |
| Outside Days | A candlestick pattern |
| Outside Director | A member of the board of directors who is not an employee of the company |
| Outside Reversal | A candlestick pattern |
| Outside Sales | Sales made outside of a company’s office |
| Outsourcing | The practice of hiring a third party to perform services |
| Outstanding Check | A check that has been written but not yet cashed |
| Outward Arbitrage | Arbitrage that involves buying in one market and selling in another |
| Outward Direct Investment (ODI) | Investment made by a company in a foreign country |
| Over-55 Home Sale Exemption | An exclusion from capital gains tax on the sale of a home |
| Over and Short | A discrepancy between actual and recorded amounts |
| Over-Hedging | Hedging more than is necessary |
| Over-Limit Fee | A fee charged for exceeding a credit limit |
| Over-Line | A loan that exceeds a bank’s lending limit |
| Over-Selling | Selling more of a product than is available |
| Over-the-Counter (OTC) | A market where securities are traded directly between parties |
| Over-the-Counter Bulletin Board (OTCBB) | A market for OTC securities |
| Term | Definition |
|---|---|
| Over-the-Counter Exchange of India (OTCEI) | An over-the-counter exchange in India |
| Over-the-Counter Market | Same as Over-the-Counter (OTC) |
| Over the Top (OTT) | Content delivered over the internet |
| Overall Liquidity Ratio | A measure of a company’s overall liquidity |
| Overall Turnover | A measure of how quickly a company sells its assets |
| Overallotment | Selling more shares than were originally planned |
| Overbought | A market condition where prices have risen too quickly |
| Overcapitalization | A situation where a company has too much capital |
| Overcast | A market condition where prices are expected to decline |
| Overcollateralization (OC) | Providing more collateral than is required |
| Overdraft | A negative balance in a bank account |
| Overdraft Protection | A service that covers overdrafts |
| Overextension | Taking on too much debt |
| Overfitting | A statistical problem |
| Overfunded Pension Plan | A pension plan with more assets than liabilities |
| Overhang | A large supply of securities that are available for sale |
| Overhead | Indirect costs of running a business |
| Overhead Rate | A method of allocating overhead costs |
| Overhead Ratio | A measure of a company’s overhead costs |
| Overheated Economy | An economy that is growing too quickly |
| Overlapping Debt | Debt shared by multiple jurisdictions |
| Overlay | A portfolio management strategy |
| Overleveraged | Having too much debt |
| Overnight Position | A position held overnight |
| Overnight Index Swap | A swap based on overnight interest rates |
| Overnight Rate | The interest rate on overnight loans |
| Overnight Trading | Trading that occurs after the close of regular trading hours |
| Overreaction | An excessive response to news or events |
| Overseas Private Investment Corporation (OPIC) | A U.S. government agency that provides political risk insurance |
| Overshooting | A situation where a variable exceeds its long-run equilibrium value |
| Oversold | A market condition where prices have fallen too quickly |
| Oversubscribed | A situation where demand exceeds supply |
| Oversubscription Privilege | The right to purchase additional shares in an oversubscribed offering |
| Oversupply | A situation where supply exceeds demand |
| Overtrading | Excessive trading |
| Overvalued | A situation where an asset is trading above its fundamental value |
| Overweight | A recommendation to increase exposure to a particular asset |
| Overwriting | Selling covered call options |
| Own-Occupation Policy | A type of disability insurance |
| Owner Earnings Run Rate | A measure of a company’s earnings power |
| Owner Financing | Financing provided by the seller of a property |
| Owner-Occupant | A person who lives in a property they own |
| Owners’ Equivalent Rent (OER) | A measure of the cost of housing services |
| Oxford Saïd Business School (SBS) | A business school at the University of Oxford |