Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance

OPTIMAL

The best or most valuable, although not necessarily in all circumstances. For instance, the candidate who best satisfies the criteria for a job would be the optimal candidate.

OPTION SPREAD

The simultaneous buying and selling of multiple options on the same underlying asset.

ORBIT

The practice of increasing net audience by showing a commercial at different times.

ORDINARY CONSTRUCTION

Buildings that have wooden joists, stairwells with only limited protection and finishes that limit where a fire can spread.

ORGANIC FARMING

Agricultural production processes that only use natural sources of nutrients and do not use synthesized chemicals or genetically modified crops.

ORGANIZED

1. To employ a logical system to structure otherwise random or chaotic elements. 2. To operate in an efficient or methodical manner.

OSMOSIS

Movement of a solvent towards a higher concentration solution from a lower concentration solution. Osmosis occurs through a semipermeable membrane that keeps the two solutions separate, but can be passed by the

OTHER SOURCES

Sources of additional funding during a business period, other than depreciation or tax deferral. Sources include lease agreements, retained profits, hire purchases, etc.

OUTFLOWS

Transferring money from one account to another, to pay for products or services.

OUTPUT DEVICE

A computer peripheral that converts computer output into forms that can used directly (e.g. printer) or with another device (e.g. a DVD writer).

OVERBOOKING

The practice of selling more tickets for a flight or concert than can be accommodated, to avoid empty seats caused by ?no-shows?.

OVERHEAD RATE

Calculated by dividing overhead costs over a given period by production activity.

OVERRIDING COMMISSION

This commission is paid to a primary agent for sales made by subagents in his or her territory. It may also refer to the amount owed to the owners of an acquired

OVERWEIGHT

A portfolio’s investments are overweight when the percentage amount invested in a particular market is greater than the market’s proportional share of total capitalization. Opposite of UNDERWEIGHT.

NOMINAL LOAN RATE

The interest rate discounting the effect of compounding, expressed on a per annum basis that applies to a mortgage, credit card or similar loans. It is also known as effective loan rate.

NOMINEE COMPANY

A company that is formed by a financial institution or another organisation which operates an account that holds assets and securities on behalf of the actual owner under the terms of a

NON-CAPITAL LOSS

Occurs when the expenses of a business are greater than the income for a financial period.

NONCONTRIBUTORY

An insurance wherein the full premium cost is borne by the employer, with no contribution from the employee.

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