Super Finance Glossary

Over 10,000 financial glossary terms...

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Browsing by the letter "O"

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Opening Price (or Range)
Definition: The price (or price range) recorded during the period designated by the exchange as the official opening.
Opening Purchase
Definition: Creation of or increase in a long position in a given series of options.
Opening Sale
Definition: Creation of or increase in a short position in a given series of options.
Opening Transaction
Definition: Applies to derivative products. (1)Buy or sell transaction that creates a position out of a flat one (writing an option short or buying an option long). Antithesis of closing transaction. (2) First transaction of the day in a stock.
Operating Assets
Definition: Another term for working capital.
Operating Cash Flow
Definition: Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements.
Operating Cycle
Definition: The average time between the acquisition of materials or services and the final cash realization from that acquisition.
Operating Expenses
Definition: The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted.
Operating Exposure
Definition: Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows.
Operating In The Red
Definition: Doing business while losing money.
Operating Lease
Definition: Short-term, cancelable lease. A type of lease in which the contract period is shorter than the life of the equipment, and the lessor pays all maintenance and servicing costs.
Operating Leverage
Definition: Fixed operating costs, which are characterized as leverage because they accentuate variations in profits.
Operating Profit (or Loss)
Definition: Revenue from a firm's regular activities less costs and expenses and before income deductions.
Operating Profit Margin
Definition: The ratio of operating profit to net sales.
Operating Rate
Definition: The percentage of total production capacity of a company, industry, or country that is being used.
Operating Ratio
Definition: A ratio that measures a firm's operating efficiency.
Operating Risk
Definition: The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk.
Operationally Efficient Market
Definition: Market in which investors can obtain transactions services that reflect the true costs associated with furnishing those services. Also called an efficient market.
Opinion Shopping
Definition: Attempts by a corporation to attain reporting objectives by following questionable accounting principles, with the help of an auditor willing to sanction the practices. Prohibited by the SEC.
OPM
Definition: Stands for "other people's money," which refers to borrowed funds used to increase the return on invested capital.
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