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Superglossary - Finance Category: Economy and Finance > Finance Date & country: 16/12/2013, USA Words: 5410

Out Of Print
Not open on the print. See

Out Of The Name
Used in the context of general equities. To no longer have an active trading profile/position in the

Out There
Used in the context of general equities. Indication gained from their trading and inquiry activity t

Out With
Used in the context of general equities. Showing of an inquiry to another broker by a customer ('he'

Out-Of-Favor Industry Or Stock
An unpopular industry or stock that usually has a low price-earnings ratio.

Out-Of-The-Money Option
A call option is out of the money if the strike price is greater than the market price of the underl

Outright Rate
Actual forward rate expressed in dollars per currency unit, or vice versa.

Outside Director
A director of a company who is not an employee of that company and brings in outside experience to h

Outside Market
Used in the context of general equities. Outside the inside market (above the lowest offering and be

Outside Of You
Used for listed equity securities. Another order bidding for or offering stock at the same price tha

Outsourcing
Purchasing a significant percentage of intermediate components from outside suppliers.

Outstanding
Used in the context of general equities. Stock held by shareholders (verses the company's treasury s

Outstanding Share Capital
Issued share capital less the par value of shares that are held as the company's treasury stock.

Outstanding Shares
Shares that are currently owned by investors.

Over-The-Counter (OTC)
A decentralized market (as opposed to an exchange market) where geographically dispersed dealers are

Overage
Apples mainly to convertible securities. Difference between how much common stock one party must sel

Overall Market Price Coverage
Total assets less intangibles divided by the total of the market value of the security issue and the

Overbought
Used in the context of general equities. Technically too high in price, and hence a technical correc

Overbought-Oversold Indicator
An indicator that attempts to define when prices have moved too far and too fast in either direction

Overdraft
Provision of instant credit by a lending institution.

Overfunded Pension Plan
A pension plan that has a positive surplus (i.e., assets exceed liabilities).

Overhang
Used in the context of general equities. Sizable block of securities or commodities contracts that,

Overhead
The expenses of a business that are not attributable directly) the production or sale of goods.

Overhead
Expenses incurred in operating a business, such as rent, executive salaries, and insurance, that are

Overheating
An economy that is growing very quickly, with the risk of high inflation.

Overissue
An excess of issued shares over authorized shares.

Overlap The Market
Used in the context of general equities. Create a crossed market by expressing a willingness to sell

Overlapping Debt
The portion of debt of political subdivisions or neighboring special districts that a municipality i

Overlay Strategy
A strategy of using futures for asset allocation by pension sponsors to avoid disrupting the activit

Overnight Delivery Risk
A risk brought about because differences in time zones between settlement centers require that payme

Overnight Position
A broker-dealer's position in a security at the end of a trading day.

Overnight Repo
A repurchase agreement with a term of one day.

Overperform
To appreciate at a rate faster than appreciation of the overall market.

Overreaching
Used in the context of general equities. Creating artificial volume in a stock through activity not

Overreaction Hypothesis
The supposition that investors overreact to unanticipated news, resulting in exaggerated movements i

Overshooting
The tendency of a pool of MBS to reflect an especially high rate of prepayments the first time it cr

Oversold
Used in the context of general equities. Technically too low in price, and hence a technical correct

Oversubscribed Issue
Investors are not able to buy all the shares or bonds they want, so underwriters must allocate the s

Oversubscription Privilege
In a rights issue, arrangement by which shareholders are given the right to apply for any shares tha

Overtrading
Excessive broker trading in a discretionary account. Underwriters persuade brokerage clients to purc

Overvalued
A stock price that is seen as too high according to the company's price-earnings ratio, expected ear

Overwithholding
Deducting and paying too much tax that may be refunded to the taxpayer or applied against the next p

Overwriting
A speculative options strategy that involves selling call or put options on stocks that are believed

Owners Equity
Paid-in capital plus donated capital plus retained earnings less liabilities.

Owners Equity
Another term for equity.

PAC Bond
Stands for Planned Amortization Class bond. A tranche class offered by some CMOs that has a sinking

Pac-Man Strategy
Takeover defense strategy in which the prospective acquiree retaliates against the acquirer's tender

Package Mortgage
A mortgage on a house and property in the house.

Paid Up
When all payments that are due have been made.

Paid-In Capital
Capital received from investors in exchange for stock, but not stock from capital generated from ear

Paid-Up Policy
A life insurance policy in which all premiums that are due have been paid.

Painting The Tape
Illegal practice by traders who manipulate the market by buying and selling a security to create the

Paired Off
Used for listed equity securities. Matched buy and sell market orders, usually pertaining to the pre

Paired Shares
Stock of two companies under the same management that are sold as one unit with one certificate.

Pairoff
A buyback to offset and effectively liquidate a prior sale of securities.

Panic Buying Or Selling
Rapid trading of stocks or bonds in high volume in anticipation of sharply rising or falling prices,

Paper
Money market instruments, commercial paper, and other.

Paper Dealer
A brokerage firm that buys and sells commercial paper to make a profit.

Paper Gain (Loss)
Unrealized capital gain (loss) on securities held in a portfolio based on a comparison of current ma

Par
Equal to the nominal or face value of a security. A bond selling at par is worth an amount equivalen

Par Bond
A bond trading at its face value.

Par Value
The stated value of a share of stock. Par is usually a minimal value (such as $.01) and bears no rel

Par Value
Also called the maturity value or face value; the amount that an issuer agrees to pay at the maturit

Par Value Of Currency
The official exchange rate between two countries' currencies.

Parallel Loan
A process whereby two companies in different countries borrow each other's currency for a specific p

Parallel Shift In The Yield Curve
A shift in economic conditions in which the change in the interest rate on all maturities is the sam

Parameter
A model is a combination of variables, such as GDP growth, and coefficients which multiply these var

Parent Company
A company that controls subsidiaries through its ownership of voting stock, as well as runs its own

Paris Bourse
National stock market of France.

Paris Interbank Offer Rate (PIBOR)
The deposit rate on interbank transactions in the Eurocurrency market quoted in Paris.

Parity
For convertibles, level at which a convertible security's market price equals the aggregate value of

Parity Value
Related

Parking
Putting money into safe investments such as money market investments while deciding where to invest

Parking Violation
Often used in risk arbitrage. Illegal holding of stock by a third party, or the financing of such a

Partial
Used in the context of general equities. Trade whose size is only part of the total customer indicat

Participate But Do Not Initiate
Used for listed equity securities. 'Participate in the side of the market indicated by the order, bu

Participating Buyer-Seller
Used for listed equity securities. (1) Customer willing to buy-sell in line with market. (2) Buyer-s

Participating Dividend
Dividend received from ownership of participating preferred stock.

Participating Fees
The portion of total fees in a syndicated credit that go to the participating banks.

Participating GIC
A guaranteed investment contract whose policyholder is not guaranteed a crediting rate, but instead

Participating Preferred Stock
Preferred stock that provides the holder with a specified dividend plus the right to additional earn

Participation Certificates (PC)
Used in the context of general equities. Investments representing an interest in a pool of funds or

Participation Loan
A large loan made by a group of lenders, that enables a borrower to obtain financing above the legal

Partner
Business associate who shares equity in a firm.

Partnership
Shared ownership among two or more individuals, some of whom may, but do not necessarily, have limit

Partnership Agreement
A written agreement among partners detailing the terms and conditions of participation in a business

Pass The Book
The process of transferring responsibility for a brokerage firm's trading account from one office to

Pass-Through Coupon Rate
The interest rate paid on a securitized pool of assets, which is less than the rate paid on the unde

Pass-Through Rate
The net interest rate passed through to investors after deducting servicing, management, and guarant

Pass-Through Securities
A pool of fixed income securities backed by a package of assets (i.e., mortgages) where the holder r

Passive
Income or loss from business activities in which a person does not materially participate, such as a

Passive Activity Loss (PAL)
A loss incurred in participating in passive investing.

Passive Bond
A bond without any interest yield.

Passive Income Generator (PIG)
An investment that favors passive income, such as an income-oriented real estate limited partnership

Passive Investing
Putting money into a profitable business opportunity that is deemed passive by the IRS and thus bene

Passive Investment Management
Buying a well diversified portfolio to represent a broad-based market index without attempting to se

Passive Portfolio
A market index portfolio.

Passive Portfolio Strategy
A strategy that involves minimal expectational input, and instead relies on diversification to match

Patent
The exclusive right to use documented intellectual property in producing or selling a particular pro

Path-Dependent Option
An option whose value depends on the sequence of prices of the underlying asset rather than just the