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

OVERRUN

1. A product (or print) run that exceeds orders for the finished articles. 2. A cost in excess of the budgeted amount.

OVERSELL

Occurs when a salesman continues trying to sell a product even after a consumer has agreed to buy it.

OVERSHOOT AND COLLAPSE

Activity that occurs when feedback or corrective action is delayed or poor. Most evident in the collapse of economic cycles and social units, when natural resources are exhausted and when an ecosystem

OVERSHOOTING

Occurs when exchange rates overreact to changes in the short-term and equilibrium is only achieved in the long-term.

OVERSUBSCRIBED

An Initial Public Offering (IPO) that attracts more demand than the offering size is considered oversubscribed, and will typically trade above the offering price when it hits the stock market.

OVERSUBSCRIPTION

It is the condition where the number of shares is less than the demand from buyers. The stock price is pushed higher as a result.

OVERSUBSCRIPTION PRIVILEGE

This is the arrangement under which a number of share holders can apply to purchase the portion of a rights issue that is not distributed.

OVERSUPPLY

The amount of goods in excess of immediate demand. Oversupply results in lowering of prices, reduced profits and increased costs from storing excess inventory.

OVERT ACT

A physical action that gives someone reasonable belief that another party intends to harm or kill them, used to justify self-defense.

OVERTIME

Hours that are worked in addition to an employee?s usual working hours (depending on company rules, contracts, union agreements and the law).

OVERTIME PREMIUM

Known as ?time and a half?, refers to the fact that employees earn 50% more than their usual hourly rate when working overtime.

OVERTIME SCHEDULED

Overtime that has been planned ahead of time, to facilitate early completion of a job, or to provide ?out of hours? support.

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

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.

OWN PRICE ELASTICITY OF DEMAND

The increase (or decrease) in the demand for a product, divided by the decrease (or increase) in its price, assuming other variables remain constant.

OWNED RECEIVABLES

On their financial statements, a company reports payments received for products or services.

OWNER FINANCING

A transaction that involves the current owner of a property part financing its purchase by the buyer.

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