O
Odd Lot
A number of shares equalling less than a board lot, the regular trading
unit decided upon by the particular stock exchange. Also, an amount less
than the par value of one trading unit on the over-the-counter market.
Off-the-Board
This term refers to transactions made over-the-counter in unlisted securities,
or, in a special situation, to a transaction involving a block of listed
stock which is not executed on a recognized stock exchange.
Offer
An offer is the same as an ask, which is the lowest price at which a
person is willing to sell a security. This is opposed to a bid, which
is the highest price at which a person is willing to buy a security.
Of Record
Shareholders of record are those who appear on the company's books or
records as of a certain date. If, for example, a company announces that
it will pay a dividend to shareholders of record January 15, every shareholder
whose name appears on the company's books on that day will be sent a dividend
cheque from the company.
Open-End or Mutual Fund Investment Company
This is a company which uses its capital to invest in other companies.
Open-end, or mutual funds, sell their own new shares to investors, buy
back their old shares, and are not listed for trading on a stock exchange.
Open-end funds get their name because their capitalization is not fixed
and they normally issue more shares as people want them.
Open Order
An order to buy or sell a security at a specified price which is valid
until executed or cancelled.
Open Outcry
Verbal bids and offers made on the trading floors of stock exchanges.
This method of public auction is disappearing as stock exchanges become
automated.
An investor who purchases an option has the right, but not the obligation,
to buy or sell certain securities at a specified price within a specified
time. A put option gives the holder the right to sell the security, a
call option gives the right to buy the security.
Option Eligible Securities
Securities which meet the eligibility criteria as underlying securities
for put and call options on a stock exchange.
Option Holder
The buyer of either a call or put option.
Option Premium
This is the price of an option. It is the amount of money that the option
holder pays for the rights and the option writer receives for the obligations
granted by the option.
Option Writer
The seller of either a call or put option. The option writer receives
payment, called a premium, and is obligated to buy or sell the underlying
security at a specified price, within a certain period of time, if called
upon to do so.
Out-of-the-Money Option
A call option is out-of-the-money if its exercise or strike price is
above the current market price of the underlying security. A put option
is out-of-the-money if its exercise or strike price is below the current
market price of the underlying security.
Out-of-Line
A security which appears to be selling too low or too high in relation
to comparable issues.
Outstanding Shares
Securities that have been issued and sold to shareholders are referred
to as outstanding.
Over-the-Counter (OTC)
A securities market made up of dealers who make trades over the telephone
and/or computer. It is also called "unlisted market," "street market"
and "between or inter-dealer market." Almost all bonds and debentures,
as well as some stocks, are traded over-the-counter in Canada.
Option
