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

Category: Finance

OPTION PRICE

The price to be paid by an investor for an option contract, based upon the security of the underlying asset and the time left until the option expires.

ORGANIC

1. Similar to a living organism, with clear and functional internal structure and consistent life cycle of birth, growth, decay, and death. 2. Compounds (natural or synthesized) that contain carbon.

ORGANIZATIONAL UNIT

Teams, groups or departments within an organization with specific functions and objectives, and with their own allocated resources.

OSCILLATION

One complete cycle of to and fro motion from one extreme to another, and back to the original position.

OUTPUT CONTRACT

Purchase agreement that obligates a buyer to purchase (at fixed prices) everything a supplier produces during a fixed period.

OVERHEAD EXPENSE

Ongoing expenses incurred by the day-to-day running of a business. Includes utilities, rent and subscriptions.

OVERRIDE

1. The income from commissions received by a sales manager, based on the total sales made by his or her subordinates. 2. The payment of fees by a seller to a broker

OVERTRADING

1. General: Occurs when a business conducts more transactions than its working capital can sustain, straining cash flow and creating the risk of insolvency. 2. Securities trading: A trader?s attempt to extract

NOMINATION COMMITTEE

A committee that operates under the corporate governance department on an organization and performs various duties that depend on the company. However, their main focus is on the evaluation of the company’s

NON-ACCRUAL LOAN

A loan that is considered to be nonperforming due to nonpayment of interest or the uncertainty regarding the collection of principal. For example, nonpayment of interest for 90 days deems that the

NONCANCELLABLE

A policy that allows the insured to be covered by continuing the payment of premiums for a specified duration of time. The premiums for such policies remain unchanged while also prohibiting the

NONCONFORMITY

Occurrence of an situation due to the nonfulfillment of the prescribed standards and specifications.

NON-DESTRUCTIVE TESTING

A method of quality control that is performed on a finished item instead of a sample. As such, it leads to no damage of the tested product. Common techniques include radiography and

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