An Open End Fund is a type of mutual fund that allows investors to buy and sell shares directly from the fund itself, rather than through a secondary market. The number of shares in an open-end fund can change daily…

Operating Expenses refer to the costs associated with running a business's core operations on a day-to-day basis, excluding the costs of goods sold (COGS). These expenses are necessary for the business to maintain its activities and can include rent, utilities,…

An Operating Lease is a lease agreement where the lessor retains the risks and benefits of ownership of an asset, and the lessee uses the asset for a specified period without acquiring ownership. Operating leases are typically shorter than the…

Operating Margin is a financial metric that measures the percentage of revenue that remains after covering operating expenses, excluding interest and taxes. It is calculated by dividing operating income by total revenue, expressed as a percentage. A higher operating margin…

Opportunity Cost refers to the value of the next best alternative that is forgone when making a decision. It represents the benefits you could have received by taking an alternative action instead of the chosen one.Example 1: If you choose…

Options refer to financial derivatives that provide the buyer with the right, but not the obligation, to buy or sell an underlying asset at a predetermined price, known as the strike price, before or at a specific expiration date.There are…

Oracle Coin refers to a type of cryptocurrency or digital token that is associated with or used in conjunction with oracle services. Oracles are systems that provide real-world data to smart contracts on a blockchain, enabling them to execute based…

Ordinary Income refers to the earnings generated from standard business activities or sources of income that are taxed at regular income tax rates. This includes wages, salaries, bonuses, rental income, interest income, and dividends. Ordinary income is distinct from capital…

Organic growth refers to the expansion of a company through internal efforts, focusing on increasing output and sales generated from existing business operations, rather than through mergers or acquisitions. It typically involves strategies such as enhancing product offerings, improving customer…

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization founded in 1960, comprising countries that are major oil producers. Its primary objective is to coordinate and unify petroleum policies among member countries to ensure the stabilization of…

Out of Pocket refers to expenses that an individual must pay directly from their own funds, rather than through insurance or other forms of reimbursement. This term is commonly used in finance and healthcare contexts.Examples of "Out of Pocket" expenses…

Outlay Cost refers to the total amount of money that is expended to acquire an asset or to complete a project. This cost encompasses all direct and indirect expenses associated with the purchase or investment, including purchase price, installation fees,…

Outstanding Shares refer to the total number of shares that are currently held by all shareholders of a company, including institutional investors and company insiders. These shares are issued and available for trading in the market, representing the ownership in…

Over-Diversification refers to a situation in which an individual or organization spreads its investments across an excessive number of assets, reducing the potential benefits of diversification while increasing complexity and management costs. This occurs when the number of investments becomes…

Over-the-Counter (OTC) refers to financial instruments that are traded directly between two parties, outside of formal exchanges. OTC trading can involve stocks, commodities, derivatives, and foreign currencies. Unlike exchange-traded securities, OTC securities are not listed on a centralized exchange, making…

Overfitting is a modeling error that occurs when a machine learning model learns not only the underlying pattern in the training data but also the noise and outliers. This results in a model that performs exceptionally well on the training…

Overweight Stock: An overweight stock is a term used in investment analysis that indicates a stock is expected to perform better than the overall market or its sector. Analysts assign an "overweight" rating when they believe the stock's price will…