Offer
The wish to sell.
Glossary
This glossary is available to download as a PDF
O
Offer for Sale
A method of bringing a company to the market. The public can apply for shares directly at a fixed price. A prospectus giving details of the sale must be published in a national newspaper.
Option
An agreement between two parties that gives the Holder (buyer), the right but not the obligation to buy or sell a specific instrument at a specified price on or before a specific future date. On exercise the Seller (writer) of the option must deliver, or take delivery of the underlying instrument at the specified price.
Order Book
Otherwise known as SETS (Stock Exchange Trading System). Introduced on October 20th 1997, the electronic order book automatically executes orders when the bid and offer prices match.
Orders
Firm order given by a dealer to a counterparty to execute a transaction under certain specified conditions, e.g., Limit order, stop loss order etc.
Ordinary Share
The most common form of share. Holders may receive dividends on the recommendation of directors. Known in the USA as 'common stock'.
OTC or Over the Counter
A bilateral transaction between a client and a bank, negotiated privately between the parties.
Out-of-the-Money Option (OTM)
An option with an exercise price more disadvantageous than the current market level of the underlying. An Out-of-the-Money option has time value but no intrinsic value.
Outright
The purchase or sale of a currency for delivery on any date other than spot.
Overnight
Transaction for settlement tomorrow, taken out today.