Glossary letters

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OBX Index

OBX refers to the Oslo Børs Index, which tracks the performance of the 25 most traded stocks on the Oslo Stock Exchange in Norway, often used in derivatives and index trading.

Office of Financial Research

The OFR is a US government office established to support the Financial Stability Oversight Council in its mission to promote financial stability. It collects data, conducts economic analysis, and develops financial risk metrics.

Ohlson o-score

The Ohlson O-score is a financial model developed by James Ohlson to predict the probability of corporate bankruptcy. The model factors in various financial ratios and other variables to assess this risk.

Omega ratio

The omega ratio is a performance measurement which compares the probability of achieving a minimum acceptable return to the probability of falling below it. It provides insight into the risk-reward ratio of an investment.Learn more

OMX Nordic Exchanges

The OMX Nordic Exchanges refer to a group of Nordic and Baltic securities exchanges owned by Nasdaq, Inc. They include markets in Sweden, Denmark, Finland, and Iceland, facilitating trading in equities, derivatives, fixed income, and more.Learn more

OMX Nordic Mid Cap

The OMX Nordic Mid Cap index tracks the performance of mid-cap companies listed on the OMX Nordic Exchanges, offering a benchmark for these moderately sized enterprises in the Nordic region.

OMX Stockholm PI (OMXSPI)

The OMX Stockholm Price Index (PI) measures the performance of all stocks listed on the Stockholm Stock Exchange. Unlike other indices, it only considers the prices of the shares without accounting for dividend payments.

One-Time Charge

A one-time charge is an unusual, non-recurring expense that a company incurs and reports in its financial statements. It's typically separated from regular business expenses to provide a clearer picture of ongoing operations.

Onerous Contracts

An onerous contract is a contract in which the costs to fulfill the terms of the contract exceed the economic benefits expected to be received under it. This may lead to a provision for the present obligation under the contract.

Online Auction

An online auction is a virtual auction held over the internet. Participants bid for goods or services online, and the highest bid at the end of the auction wins, similar to traditional auctions but conducted digitally.Learn more

OPEC

OPEC is a consortium consisting of 13 of the world's major oil-exporting nations, which coordinates and unifies petroleum policies among member countries to secure fair and stable prices for petroleum producers.Learn more

Open outcry system

The open outcry system is a traditional method of communication on trading floors involving shouting and the use of hand signals to transfer information primarily about buy and sell orders.

Open Position

An open position in finance represents an active trade that has not been closed. For example, owning shares of a stock or a buy/sell position in forex that remains open until it is sold or closed out.Learn more

Open Technology Fund

The Open Technology Fund supports global projects that develop open and accessible technologies to promote human rights and open societies, offering tools that enable secure communication and protect privacy for global citizens, activists, and journalists.

Operating cash flow ratio

The cash position ratio formula is used to assess a company’s liquidity by comparing its most liquid assets (cash and cash equivalents) to its current liabilities.

Operating cost

Operating costs are expenses associated with the day-to-day functions of a business. These include costs like rent, utilities, wages, and materials but exclude non-operating costs such as interest on debt.

Operating partner

An operating partner is typically found in private equity settings and is responsible for enhancing the value of portfolio companies by improving their operational efficiency and strategic direction.Learn more

Operating profit

Operating profit, or operating income, is the profit earned from a firm's core business operations, excluding deductions of interest and taxes, and other non-operational expenses.

Operational Risk

Operating risk, or operational risk, refers to the risks arising from the execution of a company’s business functions. It's the risk of loss resulting from inadequate or failed procedures, systems or policies; employee errors; or external events.

Optimal capital structure

The optimal capital structure is the mix of debt, equity, and other financing sources that minimizes a firm's cost of capital and maximizes its stock price, while adequately balancing financial risk.Learn more

Optimised indices

Optimised indices are custom stock or asset indices designed to achieve a specific risk-return profile, often using algorithms to enhance traditional index strategies by improving tax efficiency, reducing costs, or enhancing returns.

Option

An option is a financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date.Learn more

Options arbitrage

Options arbitrage is the simultaneous buying and selling of options to take advantage of mispricings and earn risk-free profits. Common strategies include box spreads and conversion/reversal arbitrages.

Options broker

An options broker is a broker that specialises in trading options contracts for clients, providing advice, execution services, and possibly trading on behalf of the client.

Options Price Reporting Authority

OPRA provides last sale information and current options quotations from a committee of participating exchanges dealing with options.

Order

In financial markets, an order is an instruction to buy or sell a security or other financial instrument. Orders can specify conditions such as price and quantity, and are executed via a brokerage or an exchange.Learn more

Order Book

An order book is an electronic list of buy and sell orders for a specific security or financial instrument organised by price level that provides detailed data on the number and price of orders.

Order matching system

An order matching system is used by exchanges to pair buy and sell orders in the market based on established rules, typically prioritising price and time to ensure a fair and orderly market.

Ordinary shares

Ordinary shares are represented by equity investments in a company and give shareholders voting rights and dividends.

Organisational economics

Organisational economics analyses the structure, design, and performance of organisations such as businesses, making use of economic principles and theories.

Output

Output is the total amount of goods or services produced by a company, industry, or economy within a specific period, often used as a measure of production and economic activity.Learn more

Outstanding shares = shares outstanding

Outstanding shares refers to the total number of company shares held by shareholders. This includes share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Over-The-Counter (OTC)

Over the counter refers to trading undertaken directly between two parties without the supervision of an exchange, commonly used for instruments that are not listed on formal exchanges.Learn more

Over/Under Trading

Overtrading occurs when a broker excessively buys and sell securities to generate commissions, leading to high transaction costs. Undertrading results from insufficient trading activity, which may result in missed opportunities. Learn more

Overextension

Overextension occurs when a company or individual commits more resources or capital than is financially healthy, potentially leading to cash flow issues or insolvency.

Overnight

In finance, overnight refers to trades, positions, or transactions that are held for a single night, often in the context of markets or agreements where positions are closed and reopened the next day.

Overnight market

The overnight market refers to trades that take place after the close of the main financial markets and before they open the next day. It often involves transactions that are settled on the following day.Learn more

Overnight Rate

The overnight rate refers to the interest rate at which banks lend and borrow money from each other in the overnight market, with a goal to maintain the reserve requirements of central banks. Financial institutions may borrow money to meet short-term cash needs when, for instance, their customers plan to withdraw large amounts of cash imminently.

Own Risk and Solvency Assessment

Own risk and solvency assessment, or ORSA, is a process by which insurance firms assess their current and future risks under varying conditions to ensure they have adequate solvency to meet their obligations.

Ownership dispersion

Dispersed ownership refers to a situation where a company’s shares are held by a large number of shareholders, with no single shareholder having a controlling stake.