Obamanomics

Economic policies under President Obama, emphasizing stimulus and healthcare reform.

Obelisk Consensus Algorithm

A blockchain consensus mechanism used by Skycoin, prioritizing efficiency and security.

Objective Probability

Probability based on data or evidence, used in financial risk models.

Obligation

A legal or financial duty, like a debt or contract commitment.

Obligatory Reinsurance

Reinsurance a primary insurer must purchase, often per regulation.

Obligor

A party responsible for fulfilling a debt or financial obligation.

Obsolescence Risk

Risk of assets losing value due to outdated technology or demand.

Obsolete Inventory

Unsold stock no longer marketable, requiring write-offs.

Occupancy Rate

Percentage of occupied units, like in hotels or rentals, indicating revenue potential.

Occupational Labor Mobility

Workers’ ability to change jobs or industries, impacting labor markets.

Occupational Safety And Health Act

1970 U.S. law ensuring workplace safety, affecting business costs.

Occurrence Policy

Insurance covering claims from events during the policy period, regardless of claim date.

Ocean Bills of Lading

Shipping documents for maritime trade, used in trade finance.

October Effect

Disproven theory that stocks decline in October, linked to historical crashes.

Odd Lot

A securities trade of fewer than 100 shares, often by retail investors.

Odd Lot Theory

Outdated theory that odd lot trades signal retail investor errors, predicting reversals.

Odious Debt

Debt incurred by a regime for non-public benefit, often disputed internationally.

OEX

S&P 100 Index options, traded on CBOE, for large-cap exposure.

Off-Balance Sheet (OBS)

Assets or liabilities not on the balance sheet, like leases, reducing transparency.

Off-Balance Sheet Financing (OBSF)

Financing kept off the balance sheet, like operating leases, to improve ratios.

Off-Chain Transactions (Cryptocurrency)

Crypto transactions outside the blockchain, like Lightning Network, for speed.

Off-the-Run Treasuries

Older U.S. Treasury securities, less liquid than on-the-run issues.

Offensive Competitive Strategy

Aggressive tactics, like price cuts, to gain market share.

Offer

A proposal to buy or sell securities or assets at a specific price.

Offer in Compromise

IRS settlement allowing taxpayers to pay less than owed taxes.

Offering

Issuing securities, like IPOs or bonds, to raise capital.

Offering Circular

A document detailing a securities offering, required for private placements.

Offering Memorandum

A legal document outlining an investment offering, like for private funds.

Offering Price

The price at which securities are sold to investors, like in IPOs.

Office of Foreign Asset Control (OFAC)

U.S. agency enforcing sanctions, impacting international financial transactions.

Office of the Comptroller of the Currency (OCC)

U.S. regulator overseeing national banks and federal thrifts.

Office of the Superintendent of Financial Institutions (OSFI)

Canadian regulator ensuring financial institution stability and compliance.

Office of Thrift Supervision (OTS)

Former U.S. regulator of savings and loan institutions, merged into OCC in 2011.

Official Settlement Account

A country’s balance of payments record, tracking international transactions.

Official Strike

A union-authorized work stoppage, impacting business costs and markets.

Offline Debit Card

A debit card requiring PIN verification, processed later, not real-time.

Offset

Reducing financial exposure, like matching a debt with an asset.

Offset Mortgage

A mortgage linked to a savings account, reducing interest via offset balances.

Offsetting Transaction

A trade neutralizing a position, like closing a futures contract.

Offshore

Financial activities in low-tax or lightly regulated foreign jurisdictions.

Offshore Banking Unit (OBU)

A bank branch in an offshore center, offering tax or regulatory benefits.

Offshore Mutual Fund

A fund domiciled in an offshore jurisdiction, often for tax advantages.

Offshore Portfolio Investment Strategy (OPIS)

Tax-avoidance strategy using offshore accounts, now largely restricted.

Offtake Agreement

A contract securing future commodity purchases, reducing producer risk.

OHLC Chart

A chart showing open, high, low, and close prices, used in trading.

Oil ETF

Exchange-traded fund tracking oil prices or energy companies.

Oil Field

A region with extractable oil, critical for energy investments.

Oil Initially In Place (OIIP)

Total oil in a reservoir before extraction, guiding resource estimates.

Oil Pollution Act of 1990

U.S. law mandating oil spill liability, impacting energy and insurance costs.

Oil Price to Natural Gas Ratio

Ratio comparing oil and gas prices, guiding energy investment decisions.

Oil Refinery

A facility processing crude oil, impacting energy supply chains and costs.

Oil Reserves

Proven oil deposits extractable under current conditions, valued in energy markets.

Oil Sands

Deposits of bitumen mixed with sand, a costly oil source.

Okun's Law

Economic rule linking unemployment rises to GDP declines, guiding policy.

Old-Age, Survivors, and Disability Insurance (OASDI)

U.S. Social Security program funding retirement, survivor, and disability benefits.

Old Economy

Traditional industries, like manufacturing, contrasting with tech-driven new economy.

Old Lady

Nickname for the Bank of England, influencing UK monetary policy.

Oligopoly

A market dominated by a few firms, like airlines, affecting pricing.

Oligopsony

A market with few buyers, giving them pricing power over suppliers.

Ombudsman

An independent mediator resolving financial or business disputes.

Omega

A measure of an option’s leverage and return potential relative to price changes.

Omnibus Account

A single account holding assets for multiple clients, managed by a broker.

Oman Rial (OMR)

Oman’s currency, pegged to the USD, used in its oil-based economy.

On Account

Partial payment or credit for future settlement, used in business transactions.

On-Balance Volume (OBV)

A technical indicator using volume to predict price movements.

On-Chain Governance

Blockchain decision-making via coded rules or tokenholder voting.

On-the-Run Treasury

The most recently issued U.S. Treasury, highly liquid and widely traded.

On-the-Run Treasury Yield Curve

Yield curve based on on-the-run Treasuries, a benchmark for rates.

On-Us Item

A check processed by the same bank it’s drawn on, reducing clearing time.

One Bank Holding Company

A parent company owning a single bank, simplifying regulatory oversight.

One Belt One Road (OBOR)

China’s global infrastructure initiative, impacting trade and investment.

One-Cancels-the-Other Order (OCO)

Two linked orders where one’s execution cancels the other, managing risk.

One-Child Policy

Former Chinese policy limiting families to one child, affecting economic demographics.

One Night Stand Investment

Short-term, speculative investment for quick gains, often risky.

One Percent Rule

Real estate guideline where monthly rent should equal 1% of property cost.

One-Stop Shop

A firm offering multiple financial services, like banking and insurance.

One-Tailed Test

A statistical test checking for an effect in one direction, used in finance.

One-Third Rule

Guideline that housing costs should not exceed one-third of income.

One-Time Charge

A non-recurring expense, like a write-off, impacting financial statements.

One-Time Item

Non-recurring financial event, like a lawsuit settlement, affecting earnings.

One-Touch Option

An exotic option paying out if the underlying hits a specific price.

OneCoin

A fraudulent cryptocurrency scheme, marketed as a Ponzi scheme, collapsed in 2017.

Onerous Contract

A contract with costs exceeding benefits, requiring accounting provisions.

Online Banking

Managing financial accounts via internet platforms, offering convenience.

Online Shoplifting

Fraudulent e-commerce returns or chargebacks, impacting retail finances.

Online-to-Offline (O2O) Commerce

Business model linking online marketing to offline sales, like fintech apps.

Ontario Securities Commission (OSC)

Canadian regulator overseeing Ontario’s securities markets, ensuring compliance.

Ontario Teachers' Pension Plan Board (OTPPB)

Canadian pension fund investing globally, known for private equity stakes.

Opaque Pricing

Non-transparent pricing, common in OTC markets, complicating fair valuation.

Opco

Operating company managing core business activities, often in real estate deals.

Operating Company/Property Company Deal (OPCO/PROPCO)

Structure separating operations from property ownership, optimizing financing.

OPEC Basket

A weighted average of oil prices from OPEC countries, a global benchmark.

Open

The starting price of a security at the beginning of a trading session.

Open Architecture

A system allowing multiple providers, like funds, in investment platforms.

Open Banking

Sharing financial data via APIs, enabling third-party financial services.

Open Cover

Insurance for multiple shipments, simplifying trade coverage.

Open-End Credit

Revolving credit, like credit cards, allowing repeated borrowing up to a limit.

Open-End Fund

A mutual fund issuing unlimited shares, priced daily at NAV.

Open-End Lease

A lease with variable residual value, often used in car leasing.

Open-End Management Company

A firm managing open-end mutual funds, issuing or redeeming shares.

Open-End Mortgage

A mortgage allowing additional borrowing, secured by the same property.

Open Ended Investment Company (OEIC)

A UK fund issuing shares at NAV, similar to a mutual fund.

Open House

A real estate event showcasing a property for sale, attracting buyers.

Open Interest

The number of outstanding derivative contracts, like options or futures.

Open Kimono

Sharing confidential financial or business information with stakeholders.

Open Listing

A property sale agreement allowing multiple agents, only paying the selling agent.

Open Loop Card

A payment card usable anywhere the brand (e.g., Visa) is accepted.

Open Market

A market where securities or goods are freely traded without restrictions.

Open Market Operations

Central bank buying/selling securities to manage money supply and rates.

Open-Market Rate

Interest rate for short-term loans in the open market, like repos.

Open-Market Transaction

Trades in public markets, like stocks on an exchange, ensuring transparency.

Open Mouth Operations

Central bank statements influencing markets without direct action.

Open Offer

A share issuance offering existing shareholders proportional rights to buy.

Open Order

An unexecuted trade order, like a limit order, awaiting market conditions.

Open Outcry

Traditional trading via verbal bids/offers in a pit, now rare.

Open Position

An active trade or investment exposed to market risk or profit.

Open Source

Freely accessible software or protocols, like blockchain, used in fintech.

Open Trade Equity (OTE)

Unrealized gains/losses in open futures positions, affecting margin accounts.

Opening Bell

The start of a trading session on an exchange, like NYSE at 9:30 AM.

Opening Cross

Nasdaq’s process matching orders to set opening prices for securities.

Opening Imbalance Only Order (OIO)

Nasdaq order addressing order imbalances at market open, stabilizing prices.

Opening Price

The price a security trades at when the market opens.

Opening Range

The high and low prices of a security shortly after market open.

Operating Activities

Core business functions generating revenue, reported in cash flow statements.

Operating Cash Flow (OCF)

Cash from core operations, indicating financial health and liquidity.

Operating Cash Flow Demand (OCFD)

Cash needed for operations, used in budgeting or liquidity planning.

Operating Cash Flow Margin

OCF divided by revenue, measuring cash generation efficiency.

Operating Cash Flow Ratio

OCF divided by liabilities, assessing ability to cover debts.

Operating Cost

Expenses from core business activities, like wages or utilities.

Operating Earnings

Profit from core operations, excluding non-operating items like investments.

Operating Expense

Costs of running a business, like rent or salaries, excluding production.

Operating Expense Ratio

Operating expenses divided by revenue, measuring cost efficiency.

Operating Income

Revenue minus operating expenses, reflecting core business profitability.

Operating Income Before Depreciation and Amortization (OIBDA)

Operating income plus depreciation/amortization, highlighting cash flow.

Operating Lease

A lease not recorded as a liability, treated as a rental expense.

Operating Leverage

The degree to which fixed costs amplify changes in operating income.

Operating Loss (OL)

Negative operating income, when expenses exceed core business revenue.

Operating Margin

Operating income divided by revenue, showing profitability efficiency.

Operating Profit

Synonym for operating income, profit from core business activities.

Operating Ratio (OPEX)

Operating expenses divided by revenue, assessing cost management.

Operating Revenue

Income from core business activities, like sales or services.

Operation Twist

Fed policy selling short-term bonds and buying long-term to flatten yield curves.

Operational Efficiency

Maximizing output with minimal resources, critical for financial performance.

Operational Risk

Risk of losses from internal failures, like systems or fraud.

Operational Target

Specific goals, like cost reduction, guiding financial operations.

Operations Management

Overseeing business processes to optimize efficiency and profitability.

Opportunity Cost

The value of the next best alternative forgone, like investing vs. saving.

Oprah Effect

Market boost from Oprah Winfrey’s endorsements, impacting stocks or sales.

Optimal Capital Structure

The debt-equity mix maximizing firm value while minimizing costs.

Optimal Currency Area

A region sharing a currency to optimize trade and economic stability.

Optimization

Maximizing returns or efficiency, like portfolio or operational strategies.

Optimized Portfolio As Listed Securities (OPALS)

Morgan Stanley’s equity baskets tracking global indices, for institutional investors.

Optimum Currency Area (OCA) Theory

Criteria for regions to share a currency, minimizing economic disruptions.

Option Adjustable-Rate Mortgage (Option ARM)

A mortgage with flexible payment options, risking negative amortization.

Option-Adjusted Spread (OAS)

Bond yield spread adjusted for embedded options, like call features.

Option Agreement

A contract granting the right to buy/sell an asset at a set price.

Option Chain

A list of all available options for a security, showing strikes and expirations.

Option Class

All options of the same type (call or put) on an underlying asset.

Option Cycle

The schedule of option expiration dates, typically monthly or quarterly.

Option Disclosure Document

A document detailing option risks, required for investors before trading.

Option Margin

Collateral required to trade options, covering potential losses.

Option Pool

Shares reserved for employee stock options, often in startups.

Option Premium

The price paid for an option, reflecting intrinsic and time value.

Option Pricing Theory

Models like Black-Scholes valuing options based on variables like volatility.

Option Series

Options with the same strike price, expiration, and underlying asset.

Optionable Stock

A stock with listed options available for trading.

Options

Contracts granting the right to buy/sell an asset at a set price.

Options Backdating

Illegally predating stock options to lower strike prices, benefiting recipients.

Options Clearing Corporation (OCC)

U.S. entity clearing and guaranteeing options and futures trades.

Options Contract

A contract specifying terms for buying/selling an underlying asset via options.

Options Industry Council (OIC)

Group educating investors about options, promoting safe trading practices.

Options on Futures

Options contracts based on futures, like commodity or index futures.

Options Price Reporting Authority (OPRA)

Provides real-time options price data to U.S. exchanges and investors.

Oracle of Omaha

Nickname for Warren Buffett, known for value investing success.

Oral Contract

A verbal financial agreement, legally binding but harder to enforce.

Orange Book

FDA’s list of approved drugs, impacting biotech investment valuations.

Order

An instruction to buy or sell securities, like market or limit orders.

Order Audit Trail System (OATS)

FINRA system tracking securities orders for regulatory compliance.

Order Book

A record of buy and sell orders for a security, showing market depth.

Order Driven Market

A market executing trades based on order book, not quotes, like Nasdaq.

Order Imbalance

Uneven buy and sell orders, potentially delaying market openings.

Order Management Systems (OMS)

Software managing trade orders, used by brokers or traders.

Order Paper

A negotiable instrument, like a bill of exchange, requiring payment.

Order Protection Rule

SEC rule ensuring trades execute at the best available price (NBBO).

Orderly Market

A stable market with smooth trading, minimal disruptions or volatility.

Ordinary and Necessary Expense (O&NE)

IRS-deductible business expenses deemed essential, like travel or supplies.

Ordinary Annuity

Payments made at the end of each period, like monthly rent.

Ordinary Dividends

Regular dividend payments taxed as ordinary income, not capital gains.

Ordinary Income

Income like wages or dividends, taxed at standard rates.

Ordinary Loss

Losses from regular business or investments, deductible against ordinary income.

Ordinary Shares of Stock

Common stock with voting rights but lower priority in liquidation.

Organic Growth

Business expansion from internal operations, not mergers or acquisitions.

Reserve-Replacement Ratio

Oil/gas reserves added divided by production, measuring resource sustainability.

Organic Sales

Sales growth from existing operations, excluding acquisitions or currency effects.

Organisation of Eastern Caribbean States (OECS)

Caribbean group promoting economic integration, impacting regional finance.

Organisation for Economic Co-operation and Development (OECD)

Global body promoting economic growth and trade, providing financial data.

Organization of Arab Petroleum Exporting Countries (OAPEC)

Arab nations coordinating oil policies, influencing energy markets.

Organization of the Petroleum Exporting Countries (OPEC)

Cartel controlling oil supply and prices, impacting global energy markets.

Organizational Behavior (OB)

Study of workplace dynamics, influencing financial firm management.

Organizational Chart

A diagram of a company’s structure, showing roles and reporting lines.

Organizational Economics

Analyzing firm structures and decisions, like cost allocation or incentives.

Organizational Structure

The framework of a company’s hierarchy and operations, guiding financial efficiency.

Organized Labor

Workers’ unions negotiating wages and conditions, impacting business costs.

Original Cost

The initial cost of an asset, used in accounting for depreciation.

Original Equipment Manufacturer (OEM)

A company producing parts for others’ products, like in tech or autos.

Original Face

A bond’s initial par value, used for interest and repayment calculations.

Original Issue Discount (OID)

Bonds issued below par value, with the discount treated as interest income.

Origination

The process of creating a loan or security, like mortgage issuance.

Origination Fee

A fee charged by lenders for processing a loan, often 1-2%.

Origination Points

Fees paid to lenders, expressed as a percentage of the loan amount.

Orphan Block

A valid blockchain block not included in the main chain, common in mining.

Orphan Drug Credit

U.S. tax credit for developing drugs for rare diseases, boosting biotech.

Oscillator

A technical indicator fluctuating within a range, signaling overbought/oversold conditions.

Oscillator of a Moving Average (OsMA)

MACD minus its signal line, indicating momentum shifts.

Oslo Stock Exchange (OSL) .OL

Norway’s main exchange, trading equities and derivatives, oil-heavy.

OTC Markets Group Inc.

Operator of U.S. over-the-counter markets, like OTCQX and OTC Pink.

OTC Options

Options traded over-the-counter, customized and less regulated than exchange-traded.

OTC Pink

OTC market tier for speculative or distressed stocks, with minimal reporting.

OTCQB (The Venture Market)

OTC market tier for early-stage or small companies, with moderate requirements.

OTCQX

Top OTC market tier for established companies, with strict reporting standards.

Other Comprehensive Basis of Accounting (OCBOA)

Non-GAAP accounting, like cash basis, used for simpler financial reporting.

Other Current Assets (OCA)

Short-term assets, like prepaid expenses, not classified elsewhere on balance sheets.

Other Current Liabilities

Short-term obligations, like accrued expenses, not classified elsewhere.

Other Long-Term Liabilities

Non-current obligations, like deferred taxes, on balance sheets.

Other Post-Employment Benefits (OPEB)

Non-pension benefits, like retiree healthcare, impacting corporate liabilities.

Other Post-Retirement Benefits

Synonym for OPEB, covering retiree non-pension benefits.

Other Real Estate Owned (OREO)

Foreclosed properties held by banks, often sold at a loss.

Out-of-Pocket Expenses

Direct costs paid by individuals, like medical or travel, often reimbursable.

Out-of-Pocket Limit

Maximum annual healthcare costs a person pays before insurance covers fully.

Out of The Money (OTM)

Options with no intrinsic value, where exercise would result in a loss.

Outcome Bias

Judging decisions by results, not process, affecting financial evaluations.

Outlay Cost

Initial cash spent on an investment or project, like equipment purchases.

Outperform

An analyst rating expecting a stock to beat its benchmark or peers.

Outplacement

Services helping laid-off employees find new jobs, reducing employer liability.

Output Gap

Difference between actual and potential GDP, indicating economic health.

Outright Forward

A currency forward contract for outright purchase or sale, not a swap.

Outright Futures Position

A futures contract held without an offsetting position, fully exposed to risk.

Outright Option

A standalone option contract, not part of a complex strategy.

Outside Days

A trading day with a wider price range than the previous day, signaling volatility.

Outside Director

A board member not employed by the company, providing independent oversight.

Outside Reversal

A price pattern where a day’s range exceeds the prior day, signaling a trend change.

Outside Sales

Selling financial products or services directly to clients, often in person.

Outsourcing

Contracting external firms for tasks, like accounting, to cut costs.

Outstanding Check

A written check not yet cleared or cashed, affecting account balances.

Outward Arbitrage

Exploiting price differences between markets to profit, often internationally.

Outward Direct Investment (ODI)

Domestic firms investing abroad, like building foreign facilities.

Over-55 Home Sale Exemption

Former U.S. tax rule (pre-1997) allowing tax-free home sale gains for seniors.

Over and Short

Discrepancies between recorded and actual cash or inventory, often in retail.

Over-Hedging

Hedging beyond exposure, potentially creating new financial risks.

Over-Limit Fee

A charge for exceeding a credit line, common in credit cards.

Over-Line

Borrowing beyond a credit limit, often requiring special approval.

Over-Selling

Selling more than available, like oversubscribed shares, or aggressive sales tactics.

Over-the-Counter (OTC)

Trading securities directly between parties, not on an exchange, less regulated.

Over-the-Counter Bulletin Board (OTCBB)

Former OTC platform for unlisted stocks, now largely replaced by OTC Markets.

Over-the-Counter Exchange of India (OTCEI)

India’s OTC market for small and medium enterprises, less active today.

Over-the-Counter Market

Decentralized market for trading securities, like bonds or penny stocks.

Over the Top (OTT)

Digital services bypassing traditional providers, like fintech apps, impacting revenue.

Overall Liquidity Ratio

Total assets divided by liabilities, measuring ability to meet obligations.

Overall Turnover

Total revenue or sales, indicating business activity or market share.

Overallotment

Extra shares allocated in an IPO, used to stabilize prices or meet demand.

Overbought

A security with excessive buying, likely overvalued, per technical indicators like RSI.

Overcapitalization

A firm with too much capital, leading to inefficiency or low returns.

Overcast

Overestimating financial metrics, like revenue, in forecasting or accounting.

Overcollateralization (OC)

Providing excess collateral for loans or securities, reducing lender risk.

Overdraft

Withdrawing more than an account’s balance, incurring fees or interest.

Overdraft Protection

A service linking accounts to cover overdrafts, avoiding fees or rejections.

Overextension

Taking on excessive debt or risk, threatening financial stability.

Overfitting

Creating overly complex financial models fitting past data but not future outcomes.

Overfunded Pension Plan

A pension with assets exceeding liabilities, potentially reducing contributions.

Overhang

Potential share sales, like from employee options, pressuring stock prices.

Overhead

Fixed business costs, like rent or utilities, not tied to production.

Overhead Rate

Overhead costs allocated per unit of activity, used in cost accounting.

Overhead Ratio

Overhead costs divided by revenue, measuring operational efficiency.

Overheated Economy

Rapid growth causing inflation or asset bubbles, risking correction.

Overlapping Debt

Shared debt obligations among local governments, complicating tax burdens.

Overlay

A portfolio strategy adjusting allocations without disrupting core holdings.

Overleveraged

Excessive debt relative to equity or income, increasing financial risk.

Overnight Position

Holding a trade or security past the market’s daily close, risking gaps.

Overnight Index Swap

A swap exchanging fixed for floating rates based on overnight indices, like SOFR.

Overnight Rate

Interest rate for overnight interbank loans, set by central banks.

Overnight Trading

Trading securities after regular market hours, often with lower liquidity.

Overreaction

Excessive market moves to news or events, creating trading opportunities.

Overseas Private Investment Corporation (OPIC)

Former U.S. agency financing overseas projects, now part of DFC.

Overshooting

Currency or asset prices moving beyond equilibrium due to market dynamics.

Oversold

A security with excessive selling, likely undervalued, per indicators like RSI.

Oversubscribed

When demand for an offering, like an IPO, exceeds available shares.

Oversubscription Privilege

Allowing shareholders to buy additional shares in an oversubscribed offering.

Oversupply

Excess goods or securities, depressing prices or market value.

Overtrading

Excessive trading in an account, increasing costs and risks.

Overvalued

A security priced above its intrinsic value, risking price correction.

Overweight

Holding more of an asset than its benchmark weight, expecting outperformance.

Overwriting

Selling call options against owned stock to generate additional income.

Own-Occupation Policy

Disability insurance paying if unable to work in one’s specific profession.

Owner Earnings Run Rate

Estimated annual earnings available to owners, used in valuation.

Owner Financing

Seller providing a loan to the buyer, often in real estate deals.

Owner-Occupant

A property owner living in the property, qualifying for better loan terms.

Owners' Equivalent Rent (OER)

Estimated rent for owner-occupied homes, used in CPI calculations.

Oxford Saïd Business School (SBS)

Oxford’s business school, offering finance and management education.