Obligation: A responsibility for repaying a debt.
Odd Lot: A securities holding that contains less than the normal trading unit. Compare Round Lot.
Odd-Lot Dealer: A broker or dealer who buys or sells securities in quantities smaller than the normal trading unit. Offer: The price at which an owner is willing to sell a security.
Offering: The means by which securities are sold to buyers. Usually states the price and terms.
Offering Price: The price at which members of an underwriting syndicate for a new issue will offer securities to investors.
Official Statement: Document prepared by or for the issuer that gives detailed security and financial information about the issue.
Offset: The buying or selling of a security in an exact amount to counterbalance the sale or purchase of a similar type of security. Upon completion of an offset transaction, the initiator’s position remains unchanged.
Open Order: An order to buy or sell a security at a designated price, usually within a certain time limit. See Good ’till Canceled Order.
Option: The right to trade a security during a certain period of time.
Optional Redemption: A right to retire all or part of an issue prior to the stated maturity during a specified period of years, often at a premium. The right can be exercised at the option of the issuer.
Original Issue Discount: A municipal bond issued at a dollar price less than par that qualifies for special treatment under federal tax law. Under that law, the difference between the issue price and par is treated as tax-exempt income rather than capital gain, if the bonds are held to maturity.
Overbought/Oversold: Describes a security or a market that has undergone a sharp rise or fall due to vigorous buying or selling. Being overbought or oversold indicates that such buying or selling may have left prices temporarily too high or too low. Overlay or Overlevy: An amount included in the general property tax to cover abatements and taxes that will probably not be collected.
Over the Counter: A securities market in which dealers negotiate directly, as opposed to an organized securities exchange auction system. The market for U.S. government and municipal bonds is primarily an over-the-counter market.