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Refinance Your Mortgage if You Can Cut At Least One Point - Refinancing a mortgage only makes good sense if you are going to save more than 1% on the...

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Investing Glossary - O

    Odd Lot

    Definition: An odd lot is any amount of a trade that is less than a normal trade.  This is typically fewer than 100 shares. TeenAnalyst Advice: A "round lot" is a trade of 100 shares, so an odd lot would be like a trade where you buy 20 or 25 shares. This has no significant meaning because, as an investor, you can ...

    Offering Circular

    Offering Circular - Offering Circular is a legal and binding document offering portfolio stock securities or mutual fund shares for sale, required by the Securities Act of 1933. It must explain the offer, including the terms, the issuer, the objectives, if mutual funds, or planned use of the money, if securities, historical financial statements, and the other information that could help an individual decide whether the investment is appropriate. It is an abbreviated prospectus for a new security listing. Delivered to an individual and delivered to a broker and the brokerage houses, these documents issued to arouse the interest in...

    Offering Price

    Offering Price - Offering Price is the offer price at which someone who owns a security is willing to sell. It is the asking price, and paired with the bid price. This is the price which someone choosing to by the stock security is willing to pay. Together they represent a quotation. The ask price, a shortening of an asked price or offering price is the dollar value a market, maker or stock broker offers to sell a security or commodity. The cost value another market is willing to pay for the security, the bid price, and the difference between...

    One-Share One-Vote Rule

    One-Share One-Vote Rule - One-Share One-Vote Rule is a rule by the Securities and Exchange Commission where the companies and corporations prohibited from issuing new securities that result in nullifying or restricting, or disparately reducing, the voting rights of the stock holders of stock certificates of common stock. However, the Securities and Exchange Commission rule would allow initial public offerings with dual classes of stock. It contains a grandfather provision for at minimum of three hundred companies that adopted dual classes of stock before May 1987. Many lawyers believe this date will move to include the twelve corporations that have...

    One Decision Stock

    One Decision Stock - One Decision Stock is a stock certificate or stock certificates to buy and hold. This is such that no second decision to sell the stock certificate or stock certificates is required. It is the selection of the one decision stock certificate as a popular investment philosophy during the years of 1970 through 1980, when the institutional investors thought their funds were on a limited number of high-quality growth stock certificates. The essence of this investment philosophy is that although temporary aberrations in the stock certificate's price may occur, the stock certificates outperform the market over an...

    Online Broker

    Definition: Online brokers are automated websites that allow you to place trades to buy or sell stocks, bonds, mutual funds, and other securities. Advice: Since online brokers are automated and offer very low commissions, they also don't provide investors...

    On Order

    On Order – Pending, continuous, arranged and scheduled, instructions, trades, deals and orders are referred to as being on order. Having it as a, any statement published, recorded, put on file, when it comes to execution of trades, processes and transactions for example, there are many dynamics and interplay of factors to take into consideration. Streamlining and automating some of these purchases/sales  with specific conditions, help you place things on order, for fulfillment and execution. Market and day orders, trades, on-hand inventory, whether physical or perpetual quantity of current inventory, the total quantity of material on open purchase, production,  or...

    Open-ended Fund

    Open-ended Fund – an open-end fund is a mutual fund with no restrictions on the amount of shares the company will issue... The company will continue to make shares available no matter how many investors there are already.  The majority of all metal funds are open-end funds…  They also buy back shares if the investor wishes to sell them back  Open-end funds are a very useful tool for investors, by allowing investors  to buy and sell back shares.  An open-end fund may close down if the manager deems the securities to be too high and exceeds the company’s objective  ...

    Open-Ended Investment Company

    Open-Ended Investment Company  - an open ended investment company is a company that buys and sells its securities as financial strategy.  An open-ended investment company (OEIC) mainly is in the UK, and is known in the United States as an open-ended mutual fund company An OEIC collectively pools their money from investors to invest in different things, adjusting their shares at times by selling off shares, or buying more, with no set limits... When shares are received the OEIC invest in different things, decided by the fund manger...  When shares are sold, the company pays out money to their shareholders...

    Open-End Management Company

    Open-End Management Company – an open-end management company is a securities company that sells and redeems its own securities... An open-end management company is a legal and fancier name for a mutual fund company. All open-end management company’s sell their shares at net asset value per share.  The pooled shares by several investors is a great tool for investing  because all open-end management companies have professional managers that keep track and attempt to secure the investors funds and provide marginal growth, which most smaller investors could never accomplish buying and selling common stock...

    Open End Fund

    Definition: A mutual fund that is open for investors to buy or sell shares in the mutual fund at the current NAV directly from the fund company. TeenAnalyst Advice: If there's an open end fund, there's gotta be a closed end fund, right?  Exactly.  A closed end fund allows investors to buy or sell shares on...

    Opening Bell

    Definition: At the opening of the NYSE, a bell is rung to signify the start of all trading for the day. TeenAnalyst Advice: Ringing the opening bell is an honor that not everyone gets to receive.  Typically, it's done by CEO's of big companies, new companies that are listed on the exchange, or sports legends. ...

    Open Joint Stock Company

    Open Joint Stock Company - Open Joint Stock Company is a stock to sell through a corporation that has publicly traded shares that trade without the permission of other shareholders and is not subject to limitations. It can have infinite number of shareholders. For example a company, principally engaged in the exploration and sale of base and precious metals. The company or corporation is a major producer. It is an independent institution with the freedom to buy and sell at the company or corporation's discretion. Other institutions are not as free to buy and sell stock certificates and include...

    Operating Profit Margin

    Operating Profit Margin - Operating Profit Margin is measures a company or corporation operating efficiency and pricing efficiency with its successful controlling costs. The higher the ratio translates to the better a company is functioning. A higher operating profit margin means a company has lowered fixed cost and a better gross margin or increasing sales faster than the costs, which give management more flexibility in determining price. It provides valuable information for stock investors to determine the quality of a company when looking at the trend in operating margin over time and to compare with the industry equals, divided by...

    Opportunity Cost

    Definition: An accounting/economics term referring to the value of something given up to pursue something else. TeenAnalyst Advice: An example of opportunity cost would be going to the movies.  The cost of going to the movie is $9.00 or whatever ridiculous amount of money your movie theater charges.  The opportunity cost ...

    Option

    Definition: An option is the right for a person to buy or sell a stock at an agreed upon price and date. TeenAnalyst Advice: People use options for various reasons.  Some use them to speculate, and some use them to hedge their positions.Call options are options that allow the person to bet on the stock going up.  Put options allow the investor to bet on the stock going down.Options are quite risky for young investors!  ...

    Optionable Stock

    Optionable Stock - Optionable Stock is a stock certificate that has options trading on a market exchange. Not all corporations that trade publicly have exchange-traded options; this is due to requirements that need, such as minimum shares of stock price and minimum outstanding shares. This allows stock shareholders to buy options on the underlying stock, giving them the right to buy or sell shares of the optionable stock at a set price. The easiest way to confirm whether a stock is optionable is to go to the Chicago Board Options Exchange website and check whether there are options listed for...

    Option Income Fund

    Option Income Fund - an option income fund is an open-ended mutual fund that invests in options as a strategic method to increase yield... Option Income funds buy the underlying stock and sell off the calls on them.  These funds are usually closed end funds which mean they have a fixed amount of shares and limitations and with fixed capitalization.  These option income funds are usually not the best perfuming security therefore the whole strategy of owning these funds are to increase yield...  Option income funds started in the 1970’s and has decreased over the years....

    Option Mutual Fund

    Option Mutual Fund – an option mutual fund is an open ended mutual fund that buys and sells options instead of the traditional securities, either for conservative or aggressive investments... Options give the buyer a choice to buy or sell an asset at any given date, or before the maturity date. An example of a strategy of an option mutual fund is the fund will buy stock and increase the value of the fund through the premium earned by selling its put and call options in its portfolio.  This is a very conservative method of an option mutual fund...

    Options Trading

    Options Trading - Options trading is the advantages over other investment vehicles. The contracts give a shareholder the flexibility to place bets on specific market outcomes. Option contracts provide investors with an enormous amount of leverage. In the United States the number one option contract represents one hundred underlying allocation of stock documentation. In other countries, option contracts can be in multiples of one thousand times the underlying stock or commodity. Relatively small amounts of money, an option trader can control a very large underlying stock position. An option trader can make a bet that in six months a stock...

    Order Splitting

    Order Splitting - Order Splitting is when stockbrokers split up larger orders to qualify them for the Small Order Execution System (SOES) and, therefore, have them automatically executed. The practice prohibited by rules of the National Association of Securities Dealers (NASD) where shareholders might split orders in order to qualify them as small orders for purposes of automatic execution by the Small Order Execution System (SOES). It is the breaking up orders so they can process as small orders for execution. It is for individual stock investors and stock traders with orders less than or equal to one thousand shares...

    Organized Securities Exchange

    Organized Securities Exchange - Organized Securities Exchange is a securities marketplace where the purchasers and the sellers regularly gather to trade securities according to the formal rule adopted by the exchange. It is facility for the organized trading of securities. The major national exchanges are the American Stock Exchange, the Chicago Board Options Exchange, and the New York Stock Exchange. In addition, a number of regional exchanges found to be throughout the country. It is an exchange, organized securities exchange, stock exchange. In practice, the futures market exchanges are commodity exchanges. It is all derivatives, including financial derivatives traded at...

    Original Issue Stock

    Original Issue Stock - Original Issue Stock is securities issued when a firm is first incorporated. It refers to the amount by which a security's price at issuance is lower than par value. In the case of fixed-rate capital securities, original-issue discount considered to exist if issuer is entitled to elect to defer distributions. In structuring a private equity transaction, use of a preferred stock with liquidation preference or other clauses that guarantee a fixed payment in the future can potentially create adverse tax consequences. It is the amount of the difference between the par or redemption price and the...

    Orphan Stock

    Orphan Stock - Orphan Stock is a stock not covered by the Wall Street research and the investigative analysts. Investment banks laid off employees after the bear market settled in, and the increasing number of small to medium-sized stocks lacked the coverage. A stock certificate or stock certificates largely ignored by the research analysts because it is small or in an out-of-favor sector. Value investors often believe that some orphan stocks are undiscovered bargains also termed wallflower. It is stock forgotten or set aside for a period of time. An orphan stock is a stock certificate or stock certificates not...

    OTC Bulletin Board

    OTC Bulletin Board - OTC Bulletin Board is a regulated quotation service that displays real-time quotes, last-sale pricing, and the volume information in over-the-counter (OTC) equity securities. It is the equity security not listed or traded on the NASDAQ or a National Securities Exchange. It is a quotation medium for the subscribing members. It is not an issuer, or listing service, and not to confuse with the stock market. There are no minimum substantiated standards. Issuers do not have the filing or reporting requirements. Makers will be required to provide the quarterly financial reports. Investors must contact a stockbroker or...

    Out of Favor

    Out of Favor - out-of-favor in the financial world means either a particular stock bond, security or the whole market is UN popular... An example of an unpopular stock would be a security that is performing poorly, has a slow track record, and the futures of the stock are not good, thus making the stock out-of –favor... When the entire market is down for a period of time, the market is said to be out-of-favor. It doesn’t mean it’s a bad time to invest it, is just suggesting that the stock or market I not popular with investors at that...

    Out of Line

    Out of Line - Out of Line is overstating revenue for a mortgage bank or other financial institution to keep it in compliance with a key financial covenant. A mortgage bank's institutional credit overstated with the Securities and Exchange Commission. It is the fraudulent record revenue keeping through transactions ill kept. It is to fail to record an expense or expenses for settlement or settlements agreements between the parties involved. It is the understated company records showing a pre-tax net loss when in fact this in not the case. It is the falsifying of corporate records for the benefit of...

    Out of the Money

    Definition: Options are said to be out of the money when they can't be exercised. For call options, this occurs when the stock price is below the strike price.  For put options, this occurs when the stock price is above the strike price. Advice: Even ...

    Outperform

    Definition: This term has two definitions. 1.) In investing, it's what every investor wants to do (outperform the market, that is). 2.) It's also a rating a stock analyst might give a stock.  If the stock is expected to earn a better return than other stocks, it's rated as "outperform." TeenAnalyst Advice: Everyone is trying to...

    Outside Financing

    Outside Financing - Outside Financing is the issuance of debt or equity from a source outside of the corporation. Debt financing is when a corporation financed by issuing debentures they have to reimburse after a certain period of time. It is call debt financing because the company is in debt to the holders of the bond, and they were to go bankrupt. The holders of the bond have claim to any remaining assets acquired. It is when a corporation decides to relinquish ownership in the corporation to raise additional funds. This is by selling corporation stock certificates to investors through...

    Outstanding

    Outstanding – the word outstanding in the investment and financial industry means   2 different things.  When talking about outstanding debt, it means the amount of debt not yet paid.  When the word outstanding is used when talking about securities, the word means the amount of funds that is in the hands of the investors or shareholders... for example, if the shareholders have 1000 shares of stock , the shares outstanding would be the same ( 1000 shares)   If the debt was 1.2 million dollars, the debt outstanding is 1.2 million dollars...

    Outstanding Stock

    Outstanding Stock - Outstanding Stock is the currently held stock certificates by shareholders, including restricted shares owned by the officers and insiders of a company or corporation. It is stock certificates held by the public realm investors. Shares purchased by the corporation or company are not considered outstanding stock certificates or stock shares. It is the number showing on a corporation or company balance sheet under the heading of capital stock. It is to calculate many metrics, including the stock market capitalization and earning record for each share of stock certificate. This stock certificate is more important than the authorized...

    Over the Counter

    Over the Counter – the term over-the-counter is a security that has not met the requirements of the major exchanges so therefore not listed.  These securities are generally thought of as risky investments because they aren’t listed.  It could also be a very small or unstable fund too, which is also a risky investment.  Information obtained for over-the-counter funds are usually handled via telephone or a computer network, obtaining prices and information directly...  But OTC funds usually trade in frequent because of the instability of the company and its funds, which make the bid-ask spread so much larger the stocks...

    Over the Counter Margin Stock

    Over the Counter Margin Stock - Over the Counter Margin Stock is stock listed on a national securities exchange. It is any security approved by the Security and Exchange Commission for the purpose of trading in the national market system, or appearing on the Board list of margin stock and mutual funds. A stock with qualifications considered to have a loan value in a margin account. This stock includes listed stocks and selected stock certificates meeting the requirements of the Federal Reserve. Stock certificates not on the margin list paid in full stock certificates. It is unlisted shares of stock...

    Owner of Record

    Owner of Record - Owner of Record is the person or the persons who, according to the public access records are the owner or the owners of a particular property. For example, an attorney searching the title of records found the owner of record, even though it had interest to anonymous foreign investors who were the beneficial owners. The name of an individual or entity that an issuer of record carries in it records as the registered or recognized holder. Dividends paid and other distribution factors paid only to the owners. It is the stockholder of record for legalities, or...

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    Definition of the Day Joint Venture

    Definition: When two or more individuals or corporations cooperate in a business venture and agree to split the profits and management. TeenAnalyst Advice: Joint venture are usually undergone by companies that want to work together but not have to merge.Joint ventures are separate entities created by the companies (or individuals) and...

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