October 1, 2018

Glossary

Glossary

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There are 11 names in this directory beginning with the letter O.
Offering Price
The per share price at which a stock or mutual fund is offered to the public. The market price may be more or less than the offering price.

Officers
Officers are people who are appointed by the directors. They manage the daily affairs of the corporation. A corporation's officers usually consist of a president, vice-president, treasurer and secretary. In most states, one person can hold all of these positions.

Old-Age, Survivors and Disability Insurance (OASDI)
Also known as Social Security. OASDI is a comprehensive federal benefits program that includes retirement benefits, disability income, veterans' pensions, public housing and food stamps.

Operating Agreement
An agreement among the LLC members which govern the LLC operations and the rights of its members. It is analogous to corporate bylaws.

Option
The right to buy or sell a security at a set price on or before a given date. "Call" options are bets that the security will be worth more than the price set by the option, the strike price, plus the price of the option. "Put" options are bets that the security's price will fall below the price set by the option.

Options
Marketable securities that provide for future exchange of cash and common shares contingent upon the option owner's choice.

Ordinary Income
Income derived from normal business activities, such as wages and salary, as opposed to capital gains.

Organizational Meeting
The initial meeting where the formation of the corporation is completed. At the organizational meeting a number of initial tasks are completed, such as the articles of incorporation are ratified, the initial shares are issued, officers are elected, bylaws approved and a resolution authorizing the opening of bank accounts is passed. If the initial directors are named in the articles of incorporation, they can hold the organizational meeting. If they are not named, then the incorporator holds the organizational meeting.

Over-the-Counter (OTC)
A security traded in contexts other than a formal exchange. OTC can also refer to a market where security transactions are conducted by telephone and computer, rather than on the floor of an exchange.

Overhead
Fixed costs not directly applicable to the production of a product. For example, costs of lighting and heating a factory.

Owner's Equity
What the business is worth to the owner. See Capital and Equity.