Financial Terms and Definitions » O

Offering Circular

ashivapu — Fri, 15 Jan 2010 16:34:49 +0000

A legal document offering securities or mutual fund shares for sale, required by the Securities Act of 1933.

The document must explain the offer, including the terms, issuer, objectives (if mutual fund) or planned use of the money (if securities), historical financial statements, and other information that could help an individual decide whether the investment is appropriate for him/her. also called prospectus or circular.

Operating Income

ashivapu — Sat, 03 Oct 2009 22:40:04 +0000

Operating income is the profit generated from the company’s actual operations, so it does not include taxes or interest expense. Operating Income = Gross Income – Operating Expenses – Depreciation Related posts:Net Income Gross Profit GNP Related posts:

Outstanding Shares

ashivapu — Sat, 03 Oct 2009 03:25:09 +0000

Outstanding shares include all the stock currently held by investors. Shares that have been repurchased by the company are not considered outstanding stock. Related posts:Dividend Per Share Earnings Per Share (EPS) Buyback Related posts:

Options

ashivapu — Sat, 03 Oct 2009 03:14:50 +0000

Options are financial instruments that give the holder the right but not the obligation to do something.

There are usually two types of an option orders: a call option and put option holder.

Options can be used to hedge risk or speculate. Since it usually takes a small premium to hedge or speculate on a large amount of money, options offer investors a high amount of leverage and hence are popular among many investors.

Outperform

ashivapu — Fri, 02 Oct 2009 01:57:35 +0000

An analyst recommendation meaning a stock is expected to do slightly better than the market return. Also known as “market outperform”, “moderate buy”, or “accumulate”. Related posts:Underperform Overweight Hold Related posts:

Overweight

ashivapu — Fri, 02 Oct 2009 01:51:49 +0000

1. A situation where a portfolio holds an excess amount of a particular security when compared to the security’s weight in the underlying benchmark portfolio. Actively managed portfolios will make a security overweight when doing so will allow the portfolio to achieve excess returns.

2. An analyst’s opinion regarding the future performance of a security. Overweight will usually signify that the security is expected to outperform either its industry, sector or, even, the market altogether.