Stock market terms starting with O

Off-Market Transfer Orders, Execution & Market Structure qualitative A movement of securities between demat accounts that is settled directly through the depository rather than through an exchange trade. Test: securities move by depository instruction without an exchange trade and without clearing corporation involvement

Offer for Sale Market Basics & Instruments qualitative A sale of shares by existing shareholders to the public, in which the proceeds go to those sellers and not to the company. Test: the shares offered already exist and the issuer receives none of the proceeds

Old Tax Regime Indian Market, Regulation & Taxation ₹ India's original personal income tax structure, with higher slab rates but a wide range of deductions and exemptions. Taxable Income = Gross Income - Deductions and Exemptions claimed; tax computed on the old slab schedule

Omission Bias Market Psychology & Behavioural Finance qualitative Judging harmful actions as worse than equally harmful failures to act. Test: an identical outcome is judged more acceptable when it results from inaction than from action

On-Balance Volume Indicators & Oscillators shares A running total that adds a period's volume when the close rises and subtracts it when the close falls. OBV = Previous OBV + Volume if Close > Previous Close; - Volume if Close < Previous Close; unchanged if equal

Open Interest Derivatives, Futures & Options shares The total number of derivative contracts that remain open and have not been closed or settled. Open Interest rises when a new buyer and a new seller create a contract, and falls when both sides close

Open Market Buyback Corporate Actions, Dividends & Governance qualitative A buyback in which the company purchases its own shares on the exchange over a period, rather than through a tender offer. Test: shares are acquired through normal market purchases within a stated price ceiling and time window

Open Market Operations Economy, Macro & Market Cycles ₹ crore A central bank's buying or selling of government securities to add or remove liquidity from the banking system. Test: the central bank transacts in government securities with the market, changing system liquidity by the transaction value

Open Offer Corporate Actions, Dividends & Governance qualitative A mandatory offer to buy shares from public shareholders, triggered when an acquirer crosses a control threshold. Trigger: acquiring 25% or more of voting rights, or acquiring control; the offer must be for at least 26% of the expanded voting capital

Open Order Orders, Execution & Market Structure qualitative An order that has been accepted by the exchange but not yet executed, cancelled or expired. Test: the order rests in the book with unexecuted quantity remaining and validity not yet lapsed

Open, High, Low, Close Technical Analysis & Chart Patterns ₹ The four prices that summarise a trading period: the first trade, the highest, the lowest and the last. Range = High - Low; Change = Close - Open; True Range also considers the previous Close

Opening Price Market Basics & Instruments ₹ The price at which a security's first trade of the session is executed, determined in India by a pre-open call auction. Opening Price = the price in the pre-open auction that maximises executable quantity

Operating Cash Flow Financial Statements & Accounting ₹ crore The cash generated by a company's core business activities during a period, after working capital movements and taxes paid. Operating Cash Flow = Net Profit + Non-Cash Charges - Increase in Working Capital - Taxes Paid

Operating Expenses Financial Statements & Accounting ₹ crore The costs of running the business that are not direct costs of production, such as employee benefits, selling costs and administration. Operating Expenses = Employee Benefits + Selling and Distribution + Administrative and Other Expenses

Operating Leverage Fundamental Analysis & Valuation ratio (x, times) The degree to which a company's fixed costs amplify the effect of a revenue change on its operating profit. Degree of Operating Leverage = Percentage Change in Operating Profit / Percentage Change in Revenue

Operating Margin Fundamental Analysis & Valuation % Operating profit as a percentage of revenue, showing what the core business keeps before interest and tax. Operating Margin = Operating Profit (EBIT) / Revenue x 100

Operating Profit Financial Statements & Accounting ₹ crore Profit from the core business after all operating costs including depreciation, but before interest and tax. Operating Profit (EBIT) = Revenue - Operating Expenses - Depreciation and Amortisation

Optimism Bias Market Psychology & Behavioural Finance qualitative The tendency to expect better outcomes for oneself than the base rate justifies. Test: personal probability estimates for favourable outcomes exceed the observed frequency in the relevant population

Option Derivatives, Futures & Options qualitative A contract giving its buyer the right, but not the obligation, to buy or sell an underlying at a set price by a set date. Test: the holder may exercise or let the contract lapse; the writer must perform if the holder exercises

Option Chain Derivatives, Futures & Options qualitative A table listing all available strikes for an underlying and expiry, with prices, volumes and open interest for calls and puts. Test: the display lists every listed strike for one expiry, with call data on one side and put data on the other

Option Intrinsic Value Derivatives, Futures & Options ₹ The value an option would have if exercised immediately, which is never less than zero. Call Intrinsic Value = max(Spot - Strike, 0); Put Intrinsic Value = max(Strike - Spot, 0)

Option Premium Derivatives, Futures & Options ₹ The price paid by an option's buyer to its writer for the rights the contract confers. Premium = Intrinsic Value + Time Value; Total Cost = Premium x Lot Size

Option Writer Derivatives, Futures & Options qualitative The party that sells an option and takes on the obligation to perform if the holder exercises. Test: the party received the premium at inception and must deliver or take delivery at the strike if assigned

Order Book Orders, Execution & Market Structure qualitative The exchange's live record of all unexecuted buy and sell limit orders in a security, ranked by price and then by time. Test: an order rests in the book until it is matched, modified, cancelled, or expires at the session close

Terms starting with O