Operating Cash Flow

Operating Cash Flow Measurement of funds generated by operations not factoring in working capital needs or capital expenditure. Denotes earnings prior to depreciation less taxes due. Random Finance Terms for the Letter O Opening Price Opening Purchase Opening … [Read more...]

Operating Cash Flow Ratio

Operating Cash Flow Ratio Statistic that measures the extent to which current liabilities can be fulfilled by the cash flow arising from operations in a business. Random Finance Terms for the Letter O Opening Price Opening Purchase Opening Sale Operating Cash … [Read more...]

Operating Cycle

Operating Cycle Time gap ensuing between purchase of raw materials or services and the commencement of earnings derived from their use. Random Finance Terms for the Letter O Opening Price Opening Purchase Opening Sale Operating Cash Flow Operating Cash Flow … [Read more...]

Operating Exposure

Operating Exposure The magnitude to which changes in exchange rates in conjunction with other price fluctuations will affect the future cash flow for operating expenses for a company. Random Finance Terms for the Letter O Opening Price Opening Purchase Opening … [Read more...]

Operating Profit Margin

Operating Profit Margin Ratio comparing operating margin with net sales. Shows how well costs are being controlled. Random Finance Terms for the Letter O Opening Price Opening Purchase Opening Sale Operating Cash Flow Operating Cash Flow Ratio Operating Cycle Operating … [Read more...]

Operating Lease

Operating Lease Lease valid for short term where contract term is less than the equipment’s expected life span. The maintenance costs and service charges are paid by the lessor. Random Finance Terms for the Letter O Opening Price Opening Purchase Opening Sale Operating … [Read more...]

Operating Leverage

Operating Leverage Costs of operation incurred in business that are fixed but influence fluctuation in profits. Random Finance Terms for the Letter O Opening Price Opening Purchase Opening Sale Operating Cash Flow Operating Cash Flow Ratio Operating Cycle Operating … [Read more...]

Operating Risk

Operating Risk Risk inherent in a business but distinct from financial risk. Risk arising out of operating leverage. Random Finance Terms for the Letter O Operating Margin Operating Risk Operationally Efficient Market Opinion of Title Opinion Shopping Opportunity Cost of … [Read more...]

Opinion of Title

Opinion of Title Legal opinion validating the ownership to property by means of verifying title deeds. Such a document can be insured. Random Finance Terms for the Letter O Operating Margin Operating Risk Operationally Efficient Market Opinion of Title Opinion … [Read more...]

Opinion Shopping

Opinion Shopping SEC prohibited practice involving attaining reporting objectives by a corporation through questionable accounting practices. The corporation often uses an auditor who is a willing participant in such practices. Random Finance Terms for the Letter O Operating … [Read more...]

Opportunity Cost of Capital

Opportunity Cost of Capital Returns that can be derived from the capital amount had it been invested in securities instead of the business. Random Finance Terms for the Letter O Operating Margin Operating Risk Operationally Efficient Market Opinion of Title Opinion … [Read more...]

Opportunity Costs

Opportunity Costs The gap between the performance of desired investment options and the actual investment. Fixed costs and transaction costs are factored in. Can be defined as the maximum loss incurred because of missed investment opportunities. Random Finance Terms for the … [Read more...]

Opportunity Set

Opportunity Set Set of all combinations of assets with different risk and return expectations that can be created from a given asset pool. Random Finance Terms for the Letter O Operating Margin Operating Risk Operationally Efficient Market Opinion of Title Opinion … [Read more...]

Opt Out Plan

Opt Out Plan A variant of a 401K retirement plan that employees of a company are automatically enrolled in. Default contribution rate of about 3% of wages and the funds are allocated in line with a default strategy. Random Finance Terms for the Letter O Operating … [Read more...]

Optimal Contract

Optimal Contract Minimizing total cost by using a contract to balance agency costs like monitoring, contracting and misbehavior. Random Finance Terms for the Letter O Operating Margin Operating Risk Operationally Efficient Market Opinion of Title Opinion … [Read more...]

Optimal Portfolio

Optimal Portfolio Portfolio offering best risk/ return balance for an investor. Each investor’s risk appetite and investment goal is different so the optimal portfolio for each is different too. Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption … [Read more...]

Optional Redemption Provision

Optional Redemption Provision Allowance made in the bond indenture for issuer to be able to call back the bonds before maturity date for redemption in advance of actual due date. Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption … [Read more...]

Optimization Approach to Indexing

Optimization Approach to Indexing A technique used with indexing to optimize or maximize a specific goal. For example, maximizing yield from a portfolio, maximizing convexity or improving returns to maximum possible levels. Random Finance Terms for the Letter O Optimal … [Read more...]

Optimized Portfolio as Listed Securities

Optimized Portfolio as Listed Securities Investment portfolio where the securities included match an index but do not comprehensively cover the complete index. The returns of the portfolio are expected to move in line with the index. Random Finance Terms for the Letter … [Read more...]

Option

Option A contract giving the holder or buyer a right to purchase or sell an asset. The option holder is not obligated to conduct the trade and can choose to let the option lapse. The price at which the transaction can be carried out is mentioned in the options contract as is the … [Read more...]