See: Limit Order; Limit Price; Orders; Order Ticket

Orders
In regard to securities, it is a client's instruction to a broker to buy or sell a security. There are many types of order qualifiers that stipulate such things as the amount of time in which to leave an order in and at what price to execute an order.

See: Either/Or Order; Execution; Good Til Canceled Order; Limit Order; Market Order; Stop Limit Order; Stop Order

Order Ticket
A form that is completed by a broker when receiving an order from a client. The order ticket will show the type of order (buy or sell), the number of shares, the security's name, the price qualifications (such as market or limit) and the client's name and account number.

See: Limit Order; Market Order; Orders

Original Issue Discount (OID)
A new bond issue that is usually offered below par. The bond's value is increased (accreted) over its life from the original discounted price up to par. At the bond's maturity, it will be valued at par. Interest on these types of bonds are not paid until maturity. However, the interest is taxed as it is accreted. An example of an OID is a zero coupon bond.

See: Accretion; Discount; Maturity Date; New Issue; Par; Zero Coupon Security

OSJ (Office Of Supervisory Jurisdiction)
As defined by the Financial Industry Regulatory Authority' (FINRA)--a member's parent office(s) that is responsible for supervising an office, or a group of offices.

See: Financial Industry Regulatory Authority

OTC (Over The Counter)
A market for securities that are not listed on an exchange. Security orders are transacted via telephone and a computer network that connects dealers. As opposed to the NYSE, which is an auction market, the OTC is a negotiated market. OTC dealers may either act as either principals or agents for customers. The OTC market is regulated by the FINRA.

OTC stock prices are listed daily in newspapers, with the National Market System stocks listed separately from the rest of the OTC market. The OTC market is a main market for bonds.

See: Agency; Auction Market; Dealer; FINRA; NASDAQ; National Market System; New York Stock Exchange

OTC Bulletin Board
Electronic listing of bid and asked quotations of over the counter stocks that do not meet the NASDAQ listing requirements. The system provides continuous quotations on stocks (foreign stocks are only updated twice-daily). It facilitates trading and provides greater surveillance non-NASDAQ stocks.

See: Asked Price; NASDAQ; Pink Sheets; Over The Counter

OTC Margin Stock
Corporations whose stocks, which are traded over-the-counter, have met specific criteria under Regulation T of the Federal Reserve Board that qualifies them as a margin security.

See: Federal Reserve Board; Margin; Margin Security; Over The Counter; Regulation T

Other People's Money (OPM)
Industry lingo used when individuals or corporations use borrowed funds to increase their investment returns.

Out Of Favor Stock Or Industry
Stock or industry that investors do not currently like. There are many reasons that can cause this disfavor. The banking industry, for example, would be out of favor if interest rates rise because it could harm the bank's profit. Investors who buy stocks that are out of favor are called "contrarian investors". Their goal is to purchase the stock cheaply and to sell it when their earnings increase.

See: Contrarian

Out Of Line
Said of a stock whose price is either too high or low in comparison to similar stocks in the same industry. The comparison is usually based on the price/earnings ratio (PE).

See: Overvalued; Price/Earnings Ratio; Undervalued

Out Of The Money
An option that has no intrinsic value--for example, an option whose strike price, in the case of a put, is lower than the stocks current price, or in the case of a call, is higher. An investor who buys an out-of-the-money option is speculating that the option will rise in value and become in-the-money.

See: At The Money; Call Option; In The Money; Intrinsic Value; Options; Put Option; Speculation

Outstanding Stock
Common shares of a corporation that are held by investors. The figure is shown on the corporation's balance sheet as "capital stock issued and outstanding".

See: Balance Sheet; Capital Stock; Common Stock; Issued And Outstanding

Out The Window
Said of a new issue that has been distributed very quickly to investors--also called "hot issue".

See: Blowout; Hot Issue; New Issue

Overbought
A single security or a market that technical analysts believe has risen to an unreasonable level and thus, should start to decline. If all shareholders who want to buy the stock have already done so, there should only be sellers in the market, and thus, the price will drop.

See: Correction; Oversold; Technical Analysis

Overheating
An economy that is expanding so quickly that there is concern about inflation rates rising. The Federal Reserve usually tries to slow the economy's pace by tightening the money supply. This causes less money to be chasing after goods and services.

See: Economic Growth Rate; Economic Indicators; Federal Reserve Board; Inflation

Overissue
Capital stock shares issued above the amount authorized to be issued. The security's registrar (typically a bank acting as an agent) works with the security's transfer agent in issuing new shares and canceling and reissuing certificates for transfer to new owners. These two parties keep track of the outstanding shares to prevent overissuance of shares.

See: Authorized Shares; Capital Stock; Outstanding Stock; Registrar; Transfer Agent

Overlapping Debt
Debt of a political entity, such as a state, where its tax base extends to the tax base of another political entity, such as a county within the state. When evaluating a municipal bond, if the issuer has overlapping debt, it should be considered.

See: Debt; Issuer; Municipal Bond; Underlying Debt

Overnight Position
Broker-dealer who has a long position or a short position in a security at the end of a trading day.

See: Long Position; Short Position

Oversold
A single security or a market that technical analysts believe has declined to an unreasonable level and thus, should start to rise. If all shareholders who want to sell the stock have already done so, there should only be buyers in the market, and thus, the price will rise.

See: Correction; Overbought; Technical Analysis

Oversubscribed
Term used when a new stock issue has more potential buyers than shares. The stock will usually rise in price when it starts trading on the open market as buyers who could not previously purchase the issue will now do so.

See: Hot Issue; New Issue

Over The Counter (OTC)
A market for securities that are not listed on an exchange. Security orders are transacted via telephone and a computer network that connect dealers. As opposed to the NYSE, which is an auction market, the OTC is a negotiated market. OTC dealers may either act either as principals or as agents for customers. The OTC market is regulated by the FINRA.

OTC stock prices are listed daily in newspapers, with the National Market System stocks listed separately from the rest of the OTC market. The OTC market is a main market for bonds.

See: Agency; Auction Market; Dealer; FINRA; NASDAQ; National Market System; New York Stock Exchange

Over The Counter Securities
A security not listed or traded on an exchange. The stocks are usually those of smaller companies that do not meet the NYSE or AMEX listing requirements.

See: AMEX; Listing Requirements; NYSE; Over The Counter; Security

Overtrading
In new issue underwritings, a situation in which a broker-dealer offers to buy a security from a client at premium. In return, the client will purchase shares of the new issue. The underwriter can still profit on the deal if the premium amount is less than what would be received from the underwriting spread.

See: Broker-Dealer; Initial Public Offering; New Issue; Underwrite; Underwriting Spread

Overvalued
Said of a security whose price is not justified by its price/earnings ratio and thus, should eventually decline.

See: Fully Valued; Price/Earnings Ratio; Undervalued

Overwriting
Speculative trading strategy wherein an option writer, based on his belief that the underlying security is either overvalued or undervalued, will sell call options or put options in large quantities. The writer assumes that the options will not be exercised.