|Odd Lot: Less than 100
shares of stock. A round lot is 100 shares.
|Offering Circular: Brief
marketing materials describing a new stock issue.
|Open Order: An order to buy
or sell a security that remains in effect until it
is either canceled by the customer or executed.
|Operating Income: Sales
generated from day-to-day operations of a firm.
|Opinion: A written
evaluation of the accuracy of a firm's financial
statements provided by the firm's certified public
|Opportunity Cost: The cost
of giving up one opportunity in order to invest in
another. For instance, the opportunity cost of
eating a hot fudge sundae is the brownie you could
have had instead.
|Option: The purchased right
to buy or sell securities at a set price for a
specified period of time. Key executives often
receive options to purchase company stock at an
advantageous price as part of their compensation
|Original Equipment Manufacturer
(OEM): A manufacturer that supplies its
product to other firms who sell it as part of
their product line, often under a different brand
|Out-of-pocket Loss: The
difference between the value of what the purchaser
parted with, and the value of what he or she has
|Over the Counter (OTC): The
market for securities that are not bought and sold
over the major exchanges. Penny stocks are one
example of securities that are only available over
|Overdraft: A situation in
which the amount of money deposited in an account
does not adequately cover the obligations on the
|Overbought: Stock went up
to much to fast, and will pull back.
|Oversold: Stock took a
beating that it didnít deserve, and so is likely
to rise instead of falling further.
|Overhead Resistance: The
zillions of investors whoíve held on to a stock on
the way down, are ready to sell as soon as it gets
back anywhere close to where they bought it, just
wanting to break even. As the stock rises to one
of these levels, the heavy selling keeps it from
|Overreaching: The advantage
that one business acquires when it cheats or
defrauds another business. Any agreements or
contracts that arise from overreaching are
|Owner's equity: The total
value of a company's shares of stock minus
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