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Odd Lot
A number of shares which is less than a standard trading unit. Usually refers to a securities trade for less than 100 shares, sometimes called a broken lot. Trading in less than 100 shares typically incurs a higher per share commission.

Of Record
On the company's books or records. If, for example, a company announces that it will pay a dividend on January 15 to shareholders of record, every shareholder whose name appears on the company's books on that date will be sent a dividend cheque from the company.

Offer
The lowest price at which a person is willing to sell; as opposed to bid which is the highest price at which one is willing to buy.

Offering Memorandum
This document is prepared by the dealer involved in a new issue outlining some of the salient features of the new issue, but not the price or other issue-specific details. It is used as a pre-marketing tool in assessing the market for the issue as well as for obtaining expressions of interest.

Offering Price
The price that an investor pays to purchase shares in a mutual fund. The offering price includes the charge or load that is levied when the purchase is made.

Offsetting Transaction
A futures or option transaction that is the exact opposite of a previously established long or short position.

Off-the-Board
This term may refer to transactions over-the-counter in unlisted securities, or, in a special situation, to a transaction involving a block of listed shares which is not executed on a recognized stock exchange.

Office of the Superintendent of Financial Institutions (OSFI)
The federal regulatory agency whose main responsibilities regarding insurance companies and segregated funds are to ensure that the companies issuing the funds are financially solvent.

Officers
Corporate employees responsible for the day-to-day operation of the business.

Old Age Security (OAS)
A government pension plan payable at age 65 to all Canadian citizens and legal residents.

Ombudsman for Banking Services and Investments (OBSI)
An independent organization that investigates customer complaints against financial services providers.

Open-End Fund
See Mutual Fund.

Open Interest
The total number of outstanding option contracts for a particular option series. An opening transaction would increase open interest, while a closing transaction would decrease open interest. It is used as one measure of an option class's liquidity.

Open Market Operations
Method through which the Bank of Canada influences interest rates by trading securities with participants in the money market.

Open Order
An order usually entered at a specified price (perhaps at the market) to buy or sell a security that is held open until executed or cancelled.

Opening Transaction
An option transaction that is considered the initial or primary transaction. An opening transaction creates new rights for the buyer of an option, or new obligations for a seller. See also Closing Transaction.

Operating Band
The Bank of Canada's 50-basis-point range for the overnight lending rate. The top of the band, the Bank Rate, is the rate charged by the Bank on LVTS advances to financial institutions. The bottom of the band is the rate paid by the Bank on any LVTS balances held overnight by those institutions. The middle of the operating band is the target for the overnight rate.

Operating Cash Flow Ratio
A liquidity ratio that shows how well liabilities to be paid within one year are covered by the cash flow generated by the company's operating activities.

Operating Income
The income that a company records from its main ongoing operations.

Operating Performance Ratios
A type of ratio that illustrates how well management is making use of company resources.

Operating Profit Margin
A profitability ratio that is a stringent measure of a company's ability to manage its resources effectively.

Option
A right to buy or sell specific securities or properties at a specified price within a specified time. See Put Options and Call Options.

Option Premium
The amount paid to enter into an option contract, paid by the buyer to the seller or writer of the contract.

Option Writer
The seller of the option who may be obligated to buy (put writer) or sell (call writer) the underlying interest if assigned by the option buyer.

Oscillator
A technical analysis indicator used when a stock's chart is not showing a definite trend in either direction. When the oscillator reading reaches an extreme value in either the upper or lower band, this suggest that the current price move has gone too far. This may indicate that the price move is overextended and vulnerable.

Out-of-the-Money
A call option is out-of-the-money if the market price of the underlying security is below its strike price. A put option is out-of-the-money if the market price of the underlying security is above the strike price.

Output Gap
The difference between the actual level of output and the potential level of output when the economy is using all available resources of capital and labour.

Outstanding Shares
That part of issued shares which remains outstanding in the hands of investors.

Over-Allotment Option
An activity used to stabilize the aftermarket price of a recently issued security. If the price increases above the offer price, dealers can cover their short position by exercising an overallotment option (also referred to as a green shoe option) by either increasing demand in the case of covering a short position or increasing supply in the case of over-allotment option exercise.

Overcontribution
An amount made in excess to the annual limit made to an RRSP. An overcontribution in excess of$2,000 is penalized at a rate of 1% per month.

Overlay Manager
The overlay manager works with advisors in servicing clients. This is not a referral but a partnership, in which the advisor retains the client's assets. The service incorporates the existing trusted relationship of the advisor, whom the client has become comfortable dealing with.

Override
In an underwriting, the additional payment the Financing Group receives over and above their original entitlement for their services as financial advisors and syndicate managers or leads.

Over-the-Counter (OTC)
A market for securities made up of securities dealers who may or may not be members of a recognized stock exchange. Over-the-counter is mainly a market conducted over the telephone. Also called the unlisted, inter-dealer or street market. NASDAQ is an example of an over-the-counter market.