Financial Dictionary

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OASDI

Official name of Social Security program in the United States, and is a short for Old Age, Survivors and Disability Insurance Program.

Obligation Bond

Municipal bond for securing a mortgage, whose face value is greater than the value of underlying property, and which creates personal obligation to compensate the lender for any costs that exceeds value of the mortgaged property.

Occupy Wall Street

Occupy Wall Street is an ongoing series of demonstrations in New York City based in Zuccotti Park, formerly “Liberty Plaza Park”. The protest was originally called for by the Canadian activist group Adbusters; some compare the activity to the Arab Spring movement (particularly the Tahrir Square protests in Cairo, which initiated the 2011 Egyptian revolution) […]

October Effect

An assumption that stocks will decline during October. During stocks exchange history, it happened a few times that large market crashes took place during the month of October (black Monday, black Tuesday, black Thursday, and great crash of 1987 – all happened in October). That created a belief and phenomenon of October Effect.

Odd Lot

Anything less than normal trading unit, usually trading less than 100 shares is considered an Odd Lot. Also called Uneven Lot, and is opposite of Even Lot.

OEX

A ticker symbol for Standard & Poor 100 Index, which is a capitalization-weighted index of 100 stocks whose options are traded on the Chicago Board Options Exchange and reflects risk/return characteristics of the large cap companies.

Off Balance Sheet Financing

A type of financing where large expenditures are kept off company’s balance sheet. Off-Balance-Sheet Financing implies use of operating leases, joint ventures and research and development partnership. Most common form of Off-Balance-Sheet Financing is operating leases when the asset is kept on the lessor balance while the lessee reports only rental expenses.

Off-Board

Refers to international transaction of a listed stock, or to over-the-counter transaction.

Off-Floor Order

An order made by a broker that is not on the floor of the exchange, which must be executed before equivalent on-floor orders.

Off-The-Run Treasuries

These are all Treasury bonds and notes issued before most recent issued bonds and notes of a specified maturity. These treasuries are less frequently traded than On-The-Run Treasuries and therefore are less expensive and carry little bit higher yields.

Offering Circular

A global announcement that offers mutual funds shares or securities for sale. It is a legal document, distributed to both brokerage houses and individuals, which includes information that would arouse potential investors to read the full prospectus and eventually invest.

Offset

Refers to reduction of short or long position by entering the opposite position in the same security.

Offshore Company

A company stationed outside of national boundaries. Companies are moving offshore mainly in order to avoid government control and tax expenditures.

Oligopoly

A market situation similar to monopoly, but in this case, multiple companies, usually a small number of them, control the market.

Oligopsony

A market situation in which there are only few buyers of service or a product on the market, which gives them the ability to control market prices.

Omnibus Account

An account between two brokers, who transact individual futures accounts among them. This is the way to keep identities of account holders hidden.

On Balance Volume (OBV)

A technical analysis method, developed by Joe Granville. OBV is used in order to determine when some financial instrument is heavily sold or bought, by relating price changes to volume.

On-The-Run Treasuries

These are the most recent bonds or notes of a given maturity issued by the US Treasury. These bonds and notes are most liquid and most frequently traded treasuries, and therefore, are more expensive and carry lower yields.

One Man Picture

Refers to perception of a single market maker, consisting of the maximum price he is willing to pay for a security (bid price) and the minimum price at which he is willing to sell a security (ask price).

One Too Many

Refers to a trading platform where one trading operator makes all bids and offers to all other market makers. He purchases the assets from sellers and then sells them to buyers, in contrast to normal exchange where the operator matches buyers with sellers. Enron had one of the most famous online internet One-to-Many trading platforms […]

OPEC (Organization of Petroleum Exporting Countries)

It is founded in 1960 by Iran, Iraq, Kuwait Saudi Arabia and Venezuela with a goal to provide technical and economical aid and to unify the petroleum policies of member countries in order to secure fair prices for petroleum producers and regular and economic supply to customers. Today, OPEC consists of 12 countries: Iran, Iraq, […]

Open Interest

Refers to the total number of options and futures contracts that has not been closed on particular day.