Off
Balance Sheet Financing
Financing
in which the assets and liabilities involved do not appear on the firm's
balance sheet.
Operating
Company
A subsidiary
of a holding company operated as a separate legal entity.
Operating
Lease
A lease
under which the lessor maintains and finances the property; also called
a service lease.
Operating
Leverage
The extent
to which fixed costs are used in a firm's operations.
Operating
Merger
A merger
in which operations of the firms involved are integrated in hope of
achieving synergistic benefits.
Operation
Cash Flow
That cash
flow which arises from normal operations; the difference between sales
revenues and cash operation expenses, after taxes on operation income.
Opportunity
Cost
The return
on the best alternative use of an asset, or the highest return that
will not be earned if funds are invested in a particular project.
Optimal
Dividend Policy
The dividend
policy that strikes a balance between current dividends and future growth
and maximizes the firm's stock price.
Option
A contract
which gives its holder the right to buy (or sell) an asset at a predetermined
price within a specified period of time.
Ordinary
(Deferred) Annuity
An annuity
whose payments occur at the end of each period.
Organized
Security Exchange
A formal
organization, having a tangible physical location, that facilitates
trading in designated ("listed") securities. The two major U.S. security
exchanges are New York Stock Exchange (NYSE) and the American Stock
Exchange (AMEX).
Organized
Security Exchanges
Formal
organizations having tangible physical locations that conduct auction
markets in designated ("listed") securities. The two major U.S. stock
exchanges are the New York Stock Exchange (NYSE) and the American Stock
Exchange (AMEX).
Original
Issue Discount Bond
Any bond
originally offered at a price below its par value.
Original
Maturity
The number
of years to maturity at the time a bond is issued.
Out-Sourcing
The practice
of purchasing components rather than making them in-house.
Outflow
A cash
deposit, cost, or amount paid. Has a minus sign.
Over-the-Counter
(OTC) Market
The network
of dealers that provides for trading in unlisted securities.
Over-the-Counter
Market
A large
collection of brokers and dealers, connected electronically by telephones
and computers, that provides for trading in unlisted securities.
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