Datasets:
sohomghosh
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FinRAD_Financial_Readability_Assessment_Dataset

Dataset card Data Studio Files Community
1
terms
stringlengths
1
156
definitions
stringlengths
3
4.2k
source
stringclasses
15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
float64
-0.5
73
gunning_fog
float64
0.4
56
NONPAR SWAP
An OVER-THE-COUNTER SWAP, such as a PREMIUM SWAP or DISCOUNT SWAP, which is transacted at off-market INTEREST RATES. Also known as OFF-MARKET SWAP.PARTICIPATING GUARANTEED INVESTMENT CONTRACT, SYNTHETIC GUARANTEED INVESTMENT CONTRACT.
palgrave
0
22.41
13.9
0
19.83
18.2
10.17
13.5
15.33
NONPRIME LOAN
See SUBPRIME LOAN.
palgrave
0
93.81
0.9
0
3.43
5.2
9.05
0.5
1.2
NONPUBLIC INFORMATION
See INSIDE INFORMATION.
palgrave
0
9.21
12.7
0
13.12
13
9.05
1.5
14.53
NONPURPOSE LOAN
A LOAN, collateralized by SECURITIES and subject to MARGIN rules, where the proceeds are not used to acquire additional secur- ities. See also PURPOSE LOAN.
palgrave
0
50.33
9.3
0
11.3
9.7
10.57
6.75
9.8
NONRECOMBINING TREE
A LATTICE MODEL used to price OPTIONS where the assumed upward and downward movements are not equal. This yields an uneven or skewed lattice, and causes option value to be weighted more heavily in the direction of the larger market moves. See also BINOMIAL MODEL.
palgrave
0
64.71
8
8.8
9.85
9
9.99
7.5
7.78
NONRECOURSE
The lack of a CLAIM on a contracting party. A nonrecourse transaction is dependent solely on the ASSETS or CASH FLOWS associated with the transaction, indicating that the financial position/capabilities of the sponsor or contracting party are irrelevant and cannot be considered. See alsoNONRECOURSE LOAN, RECOURSE.
palgrave
0
30.57
12.8
15
15.42
13.9
10.92
12
16.55
NONRECOURSE LOAN
A LOAN with repayment that depends solely on the proceeds from the project or ASSET being financed, or the sale of spe- cific COLLATERAL supporting the transaction. The lending BANK has no abil- ity to seek repayment from the BORROWER in the event of a shortfall. See also FULL RECOURSE LOAN, NONRECOURSE, PARTIAL RECOURSE LOAN,RECOURSE.
palgrave
0
61.36
9.2
12.5
11.6
12
10.57
11.833333
11.68
NONREFUNDABLE DEBT
A BOND or NOTE that cannot be redeemed and replaced by alternative DEBT. In some instances the INDENTURE of a non- refundable bond will allow limited refunding, but only if INTEREST RATES decline to a particular level. See also CALL PROTECTION, NONCALLABLE BOND.
palgrave
0
48.5
10
12.5
11.01
9.9
10.59
8.833333
13.16
NONSYSTEMATIC RISK
See DIVERSIFIABLE RISK.
palgrave
0
9.21
12.7
0
13.12
13
14.31
1.5
14.53
NONVOTING STOCK
COMMON STOCK that carries standard RENT RIGHTS, but only limited CONTROL RIGHTS – including the right to obtain financial disclosure and file lawsuits, but not to vote. See also DISENFRAN-CHISING TRANSACTION.
palgrave
0
47.28
10.5
0
14.79
13.4
11.54
10.75
13.94
NOPAT
See NET OPERATING PROFIT AFTER TAX.
palgrave
0
48.47
8
0
7.18
5.1
9.2
3
9.07
NORMAL BACKWARDATION
A market state where the SPOT PRICE on a FUTURE or FORWARD is higher than the FORWARD PRICE, often as a result of temporary ASSET shortages or an excess SUPPLY for future delivery. Also known as BACKWARDATION. See also CONTANGO.
palgrave
0
57.98
8.5
9.7
8.69
7.5
8.64
7
9.32
NORMAL DISTRIBUTION
A continuous probability distribution function that focuses on data centered around the MEAN. The probability density func- tion is given as:p( x) =12s⎝where μ is the mean, and σ is the STANDARD DEVIATION.Given a mean of 0 and standard deviation of 1, the equation simplifies to:p( x) = 1 e 2s2pUnder the properties of the distribution, approximately 68% of observations lie within +/_x0010_ one standard deviation of the mean, 95% within approximately +/_x0010_ two standard deviations, and 99.7% within approximately +/_x0010_ three stand- ard deviations. The normal distribution is widely used in a variety of financial and ACTUARIAL PRICING techniques.Also known as GAUSSIAN DISTRIBUTION. See also LAW OF LARGE NUMBERS, LOGNORMAL DISTRIBUTION.
palgrave
0
17.88
17.7
17.7
14.28
19.4
11.42
24.333333
16.53
NORMAL MARKET SIZE
A method of classifying the TRADING volume of STOCKS on the United Kingdom’s LONDON STOCK EXCHANGE, based on 12 different categories. The classifications are used to impose certain require- ments on MARKET MAKERS and to set requirements for publishing transac- tion data.
palgrave
0
50.16
11.5
0
13.81
14.9
12.2
13.5
13.16
NOSTRO
Literally “our account”; a local account a foreign BANK main- tains with a local bank to accommodate local CURRENCY business, e.g., a US bank has a yen nostro with a Japanese bank to manage its yen inflows and outflows. See also VOSTRO.
palgrave
0
58.62
10.3
0
8.53
10.9
10.69
13
12.21
NOTARY
An official that is legally authorized to witness signatures and cer- tify the validity of a document. Also known as PUBLIC.of several currencies; securities are often listed on an EXCHANGE, although most TRADING occurs OVER-THE-COUNTER. (2) A PROMISSORY NOTE. (3) A BANKNOTE. (1) See also BOND, EURONOTE, MEDIUM-TERM NOTE, EURO MEDIUM-TERM NOTE, FLOATING RATE NOTE, GOVERNMENT BOND, LEVERAGED NOTE, NOTE ISSUANCE FACILITY, STRUCTURED NOTE.
palgrave
0
22.08
18.1
0
15.04
22.3
12.38
22.5
18.43
NOTE ISSUANCE FACILITY (NIF)
A EURONOTE program where a BORROWER issues unsecured NOTES to INVESTORS via a TENDER PANEL. If the notes cannot be successfully placed, the underwriting BANKS agree to purchase them through the extension of medium-term LOANS, thus guar- anteeing the borrower good funds. See also REVOLVING UNDERWRITING FACILITY.
palgrave
0
47.08
10.6
13.6
14.38
13.1
12.48
11.166667
13.09
NOTIONAL
A common method of denominating the size, though not necessarily the RISK, of a DERIVATIVE transaction (generally SWAPS and FORWARDS). In most instances notional is used only as a reference to compute amounts payable and/or receivable, although for CURRENCY SWAPS the full notional is typically exchanged on TRADE date and at final MATURITY. Also known as NOMINAL, PRINCIPAL.
palgrave
0
34.97
13.2
15.5
13.52
14
11.4
14.333333
16.69
NOVATION
A process where all contractual payments between two parties are amalgamated and settled during a particular interim period (monthly or quarterly). Remaining CONTRACTS are then rewritten at the current MARKET VALUE and the process is repeated during the next netting period. Novation creates greater efficiencies in the CASH FLOW settlement process. See alsoPAYMENT NETTING, RECOUPONING, SET-OFF.
palgrave
0
31.89
12.3
13.8
16.52
14.3
10.82
10.5
14.17
NOYAU DUR
The French concept of SHAREHOLDER loyalty; stakes taken by certain institutional or corporate shareholders in other companies with which they have long-standing ties or business relationships are used to support EXECUTIVE MANAGEMENT and DIRECTORS in their attempt to dir- ect the company.
palgrave
0
11.93
22
0
17.19
27.3
12.49
33
26.32
NPV MODEL
See CREDIT MARK-TO-MARKET MODEL.
palgrave
0
33.58
9.6
0
14.5
14.7
11.73
2
1.6
N-TH-TO-DEFAULT SWAP
A generalized version of an OVER-THE-COUNTER DEFAULT SWAP comprised of a BASKET of REFERENCE ENTITIES that entitles the purchaser to a payout on the n-th one to DEFAULT, where n is agreed between the two parties to the CONTRACT in advance; once the n-th reference entity occurs, the transaction terminates. See also FIRST-TO-DEFAULT SWAP.
palgrave
0
44.07
13.8
0
12.42
16.9
10.82
19
16.73
NV
See NAAMLOZE VENNOOTSCHAP.
palgrave
0
59.97
5.6
0
18.92
17.8
14.31
0.5
1.2
NYSE
See NEW YORK STOCK EXCHANGE.
palgrave
0
100.24
0.5
0
4.96
3.7
7.04
1.5
2
NYSE EURONEXT
An international HOLDING COMPANY formed from the 2007 MERGER of the NEW YORK STOCK EXCHANGE and EURONEXT, itselfthe product of a merger of the STOCK exchanges of Amsterdam, Brussels, Paris, and Lisbon, and the DERIVATIVES exchange London International Financial Futures and Options Exchange. The NYSE Euronext group exchanges are active in TRADING, SETTLEMENT, and CLEARING of stocks, BONDS, and a range of derivatives.
palgrave
0
31.04
16.8
0
15.15
21
11.72
19.75
15.14
OAS
See OPTION-ADJUSTED SPREAD.
palgrave
0
9.21
12.7
0
18.92
19.3
14.31
1.5
14.53
OBJECTIVE RISK
A measure of the deviation between an INSURER’s actuallosses and its EXPECTED LOSSES (as predicted through ACTUARIAL PRICINGtechniques). The greater the objective risk, the larger the losses and the lessaccurate the pricing methodologies.
palgrave
0
29.35
13.3
0
17.75
16.2
11.63
13.25
18.72
OBLIGATION
The requirement of a BORROWER to repay a LENDER underthe terms of a CONTRACT.
palgrave
0
57.27
8.8
0
8.23
7.1
11.1
9
14.17
OBLIGATIONS FONCIERES
In France, a form of COVERED BONDbacked by MORTGAGES, issued exclusively by Sociétés de Crédit Foncier.See also CEDULAS HIPOTECARIAS, HYPOTHEKENPFANDBRIEFE, IRISHASSET COVERED SECURITIES, JUMBO PFANDBRIEFE, LETTRES DE GAGE,OFFENTLICHE PFANDBRIEFE.
palgrave
0
25.12
17
0
25.3
28.6
15.96
18.5
15.74
OCCURRENCE LIMIT
The maximum amount an INSURER is required topay the INSURED for a loss occurrence that leads to a CLAIM, even if thetotal loss is larger than the amount specified by the limit. See also CLAIMSOCCURRENCE BASIS.
palgrave
0
61.67
9.1
0
9.97
10.3
10.67
11.5
12.76
ODD LOT
An ORDER that is smaller than the standard institutionalTRADING size in a particular SECURITY or market. Odd lots, which are mostoften associated with RETAIL INVESTORS, are generally subject to higherCOMMISSIONS/fees than ROUND LOTS.
palgrave
0
29.35
13.3
0
16.88
15.5
10.68
11.25
13.87
ODD LOT THEORY
A theory indicating that as ORDERS executed on anODD LOT basis rise, speculative forces may be at work in pushing individualSECURITIES or broader markets to new peaks, as individual INVESTORS oftendrive the final stages of a BUBBLE.
palgrave
0
8.54
21.3
0
13.59
22
13.15
25.5
22.37
OFF-BALANCE SHEET ACTIVITIES
Contingent financial transactions thatare not fully reflected through the corporate BALANCE SHEET. For FINAN-CIAL INSTITUTIONS this may include STANDBY LETTERS OF CREDIT,IRREVOCABLE LETTERS OF CREDIT, REVOLVING CREDIT FACILITIES,ACCEPTANCES, DERIVATIVES, and certain types of LEASES; for companies itmay be limited to leases, SUBSIDIARY guarantees and/or derivatives. Institutionsactive in these businesses face varying degrees of contingent risk exposure andmust generally set aside sufficient CAPITAL to cover potential risks.
palgrave
0
-1.63
19
18.9
22.33
22.6
13.58
18.666667
20.92
OFF-MARKET
A price or feature assigned to a SECURITY, DERIVATIVE, orother financial transaction that is different than the current market or acceptedmarket standard. An off-market transaction may be created in order to shift profit and loss parameters, alter funding costs, or reduce RISK exposures. See also NONPAR SWAP.
palgrave
0
38.62
11.8
14.1
14.03
12.9
11.81
11.5
13.09
OFF-THE-RUN SECURITIES
A SECURITY that has been issued at some time in the past. Off-the-runs continue to trade until they mature or are redeemed, but often feature less LIQUIDITY and wider SPREADS thanON-THE-RUN SECURITIES.
palgrave
0
55.24
9.5
0
11.95
11.6
10.35
9
11.4
OFFENTLICHE PFANDBRIEFE
A form of COVERED BOND in the German market that is fully collateralized by public sector LOANS. Also known as PUBLIC PFANDBRIEFE.
palgrave
0
60.31
7.6
0
9.72
7.4
9.21
5
6.22
OFFER
A quoted selling price for an ASSET from a DEALER or MARKET MAKER. Also known as ASK. See also BID.
palgrave
0
81.59
3.5
3.1
2.09
0.7
7.92
2.333333
2.68
OFFER BY PROSPECTUS
The offering of a NEW ISSUE of SECURITIES dir- ectly by the ISSUER to INVESTORS by means of a PROSPECTUS. An offer by prospectus is a relatively uncommon method of placing new securities. See also OFFER BY SALE.
palgrave
0
58.58
8.2
10.5
7.76
6.5
9.25
7
9.29
OFFER BY SALE
The offering of a NEW ISSUE of SECURITIES through one or more INTERMEDIARIES (e.g., a SYNDICATE of UNDERWRITERS), and the most common means of placing new securities with INVESTORS. See alsoOFFER BY PROSPECTUS.
palgrave
0
46.27
10.9
0
12.29
12.2
10.68
11.75
13.87
OFFER DOCUMENT
A document submitted to SHAREHOLDERS of a com- pany that is the subject of an ACQUISITION offer that contains relevant details of the proposed transaction.
palgrave
0
29.18
15.4
0
12.94
15.8
11.82
18.5
19.6
OFFERING MEMORANDUM
A document used to describe relevant details of a PRIVATE PLACEMENT, including information related to the ISSUER and particulars of the transaction. See also PROSPECTUS.
palgrave
0
33.41
11.7
0
14.78
12.1
11.84
8.75
16.2
OFFICIAL LIST
The list of all STOCKS traded on the main board of theLONDON STOCK EXCHANGE.
palgrave
0
82.65
5.2
0
7.82
6.8
8.84
7
8.46
OFFICIAL RECEIVER
In the United Kingdom, a RECEIVER that is appointed to manage the BANKRUPTCY of a company. The official receiver may also serve as liquidator of ASSETS in the event of a LIQUIDATION.
palgrave
0
46.78
10.7
0
9.28
8.8
8.87
12
13.9
OFFSET
(1) The right of a CREDITOR to take possession of financial ASSETS of a delinquent DEBTOR through a process known as garnishment. (2) The right of a firm with amounts payable to a COUNTERPARTY in DEFAULT to deduct any amounts receivable from the counterparty. (2) See also NETTING.
palgrave
0
39.68
19.6
0
10.81
25.6
11.94
31
24.2
OFFSHORE COMPANY
(1) A company or SPECIAL PURPOSE ENTITY that is generally established in a TAX-friendly jurisdiction to help fulfill specific INVESTMENT or tax goals. (2) Any company or SUBSIDIARY operating outside the national borders of a PARENT or HOLDING COMPANY.
palgrave
0
6.51
22
0
13.94
23.8
12.45
30.5
23.81
OID
See ORIGINAL ISSUE DISCOUNT.
palgrave
0
33.58
9.6
0
11.6
10
15.68
2
11.6
OLD LADY
A term for the BANK OF ENGLAND, abbreviated from the “Old Lady of Threadneedle Street” in reference to the location of the Bank’s headquarters.
palgrave
0
47.12
12.7
0
11.55
14.1
9.43
17
17.93
OLIGOPOLY
A marketplace with only a few sellers who can collectively influence selling prices. If each has enough of a market share, then the actions of other sellers must be considered when developing pricing and distribution strategies. See also DUOPOLY, MONOPOLY, OLIGOPSONY.
palgrave
0
49.11
9.8
12.5
13.51
11.6
10.09
8.5
13.28
OLIGOPSONY
A marketplace with only a few buyers who can collectively influence overall purchase prices. If each has enough of a market share, then the actions of other buyers must be considered when developing pricing and acquisition strategies. See also DUOPSONY, MONOPSONY, OLIGOPOLY.
palgrave
0
48.81
9.9
11.9
13.62
11.8
10.35
8.333333
12.27
OMEGA
See THETA.
palgrave
0
120.21
-3.1
0
-7.41
0.8
11.63
0
0.8
OMNIBUS ACCOUNT
An ACCOUNT held by one BROKER or FUTURES COMMISSION MERCHANT in the name of a second one, and which contains individual subaccounts for separate clients.
palgrave
0
46.1
13
0
12.48
15.4
9.93
16.5
14.8
OMNIPRESENT SPECTER
A legal rule requiring a BOARD OF DIRECTORS to demonstrate that it is not acting in its own self-interest when rejecting a corporate control transaction such as a TAKEOVER, i.e., that rejec- tion of the bid and the creation of any ANTITAKEOVER DEFENSES are required in order to protect SHAREHOLDERS.
palgrave
0
20.73
22.8
0
11.8
27.1
12.12
34
27.2
ONE-FACTOR MODEL
See SINGLE FACTOR MODEL.
palgrave
0
50.5
7.2
0
5.8
5.3
11.73
1
1.6
ONE-MAN PICTURE
A market situation where the only available BID and OFFER on a transaction come from the same source.
palgrave
0
61.67
9.1
0
9.16
9.6
8.04
11
11.64
ONE-SIDED MARKET
A market in which only one price, either a BID or OFFER, is quoted. This tends to be characteristic of ILLIQUID markets or those that are undergoing a period of financial stress, when DEALERS and SPECULATORS are unwilling to put up RISK CAPITAL.
palgrave
0
49.65
11.7
0
9.4
11.6
9.11
14.25
13.25
ONE-TOUCH OPTION
See BINARY-BARRIER OPTION.
palgrave
0
-50.02
21
0
16.95
17.8
19.58
1.5
27.87
ONE-WAY MARKET
A market situation in which interest or activity exists only on one side, typically the selling or OFFER side. A one-way market may arise during a period of FINANCIAL CRISIS, when RISK appetite is on the wane.
palgrave
0
52.7
10.5
0
9.05
9.9
9.68
12.25
13.89
OPEN CONTRACT
A LONG POSITION or SHORT POSITION in a single unit of an EXCHANGE-TRADED DERIVATIVE. See also OPEN POSITION.
palgrave
0
45.42
9.2
0
9.31
6.9
7.59
6
8.04
OPEN DISPLAY
The electronic LIMIT ORDER book of BIDS and OFFERS in a given STOCK as supplied by an ELECTRONIC COMMUNICATIONS NETWORK. Open displays provide full visibility on all orders that are not held back as RESERVE ORDERS or HIDDEN ORDERS.
palgrave
0
51.68
10.9
0
11.14
11.6
9.46
11.75
10.88
OPEN-END FUND
See MUTUAL FUND.
palgrave
0
59.97
5.6
0
-0.46
2.1
14.31
1.5
14.53
OPEN INTEREST
A measure of EXCHANGE-TRADED DERIVATIVE CONTRACT LIQUIDITY, generally computed as the number of outstanding FUTURES or OPTION contracts that are not offset by opposing transactions or accommodated by DELIVERY.
palgrave
0
-0.27
20.5
0
18.92
22.5
13.24
24.5
24.01
OPEN MARKET PURCHASE
The purchase of a block of a company’s COMMON STOCK in the open market by another firm, generally as a prelude to a formal TENDER OFFER.
palgrave
0
53.55
12.3
0
7.32
11.7
9.78
16
13.48
OPEN ORDER
See GOOD TILL CANCELLED ORDER.
palgrave
0
83.32
2.9
0
7.28
5.6
7.04
1.5
2
OPEN OUTCRY
A TRADING process/mechanism based on physical commu- nication between FLOOR TRADERS working on an EXCHANGE. Floor traders agree on purchase and sale terms through verbal discussion and/or hand- signals.
palgrave
0
56.76
8.9
0
15.71
14.1
11.98
7.75
9.94
OPEN POSITION
A LONG POSITION or a SHORT POSITION in a financial ASSET, COMMODITY, or DERIVATIVE, which exposes the holder to one or more RISK FACTORS. The risk of an open position can only be offset through a HEDGE, closeout, or offsetting position. See also OPEN CONTRACT.
palgrave
0
56.25
9.1
13
8.92
8.7
8.94
10.5
11.33
OPEN REPURCHASE AGREEMENT
A REPURCHASE AGREEMENT with no specific MATURITY, cancellable on 24 hours’ notice by either party to the
palgrave
0
45.76
11.1
0
12.12
11.5
10.98
11.5
13.86
OPENING BANK
A BANK that creates a LETTER OF CREDIT at the request of an importer so that payment for an exporter’s goods can be arranged.
palgrave
0
72.5
9.1
0
7.43
10.6
8.77
12
9.6
OPERATING CASH FLOW
The portion of the STATEMENT OF CASH FLOWS that reflects the cash activities of a firm’s core operations, and can be com- puted as NET INCOME plus DEPRECIATION, benefits, and provisions, and DEBIT/CREDIT adjustments related to changes in ACCOUNTS RECEIVABLE, INVENTORIES, accrued LIABILITIES, and deferred income TAXES. It can also be computed as EARNINGS BEFORE INTEREST AND TAXES minus TAXES plus DEPRECIATION, or NET OPERATING PROFIT AFTER TAX plus DEPRECIATION. See also FINANCING CASH FLOW, INVESTING CASH FLOW.
palgrave
0
19.71
17
17.1
14.63
18.1
11.81
19
18.09
OPERATING CYCLE
The time between the acquisition of raw materials or other resources needed to prepare goods and the sale of goods to customers. The difference between cash outflows in support of raw material acquisition and cash inflows from sales must be financed through internal (e.g., cash on hand) or external sources (e.g., LOANS). The operating cycle can be viewed as the sum (in days) of the INVENTORY cycle (as measured through e.g., DAYS SALES INVENTORY) and the CASH FLOW CYCLE (as measured through, e.g., DAYS SALES OUTSTANDING). See also CASH CONVERSION CYCLE, CASH FLOW CYCLE.
palgrave
0
56.08
11.3
13
11.03
14.5
9
14.75
13.23
OPERATING EXPENSE
The cost associated with supporting the normal business operations of a company, typically including COST OF GOODS SOLD, DEPRECIATION, administrative costs (e.g., salaries, rent, research and devel- opment); some companies exclude cost of goods sold in the computation. Operating expenses always exclude INTEREST and TAX EXPENSES.
palgrave
0
14.29
17
0
17.18
19.3
11.99
19
20.5
OPERATING INCOME
The results of a company’s operations before taking account of INTEREST and TAX EXPENSES. It can be computed as REVENUE less OPERATING EXPENSES (if operating expenses includes COST OF GOODS SOLD) or GROSS INCOME less operating expenses (if operating expenses exclude cost of goods sold). Also known as OPERATING PROFIT.
palgrave
0
29.14
13.3
15.5
12.93
12.3
8.25
13
11.48
OPERATING LEASE
A LEASE with a CONTRACT period that is shorter than the expected economic life of the underlying ASSET; the contract is generally cancellable at the option of the LESSEE. Operating leases, which are gener- ally classified as OFF-BALANCE SHEET ACTIVITIES, are commonly written on equipment. See also CAPITAL LEASE.
palgrave
0
38.01
12
14.1
12.82
12.2
11.21
11.833333
13.87
OPERATING LEVERAGE
The degree to which a company’s costs are fixed; the greater the percentage of a company’s costs that are fixed, rather thanvariable, the greater the resources it has flowing to the NET INCOME account once the breakeven point has been reached. Also known as OPERATIONAL GEARING. See also LEVERAGE.
palgrave
0
71.85
7.3
9.7
11.19
10.7
8.96
8.5
8.97
OPERATING MARGIN
A measure of a company’s ability to translate REVENUES into OPERATING INCOME, computed as:where OI is operating income, Rev is revenueThe higher the margin, the more efficient a company is in managing the costs of its business.
palgrave
0
17
20.1
0
12.49
21.4
11.45
26.5
21.29
OPERATING PROFIT
See OPERATING INCOME.
palgrave
0
9.21
12.7
0
9.23
9.9
9.05
1.5
14.53
OPERATING RISK
The RISK of loss arising from temporary or permanent dis- ruption in the daily physical operating and production activities of a firm and/ or changes in nonfinancial inputs and outputs. See also FINANCIAL RISK.
palgrave
0
45.76
11.1
0
11.95
11.6
11.91
12.5
16.21
OPERATIONAL ERROR RISK
The RISK of loss due to problems or errors involving internal operations, such as late or misdirected payments or mis- handling/misdirecting securities. A subcategory of PROCESS RISK.
palgrave
0
32.39
12.1
0
14.78
12.7
12.49
10.25
15.77
OPERATIONAL GEARING
See OPERATING LEVERAGE.
palgrave
0
9.21
12.7
0
13.12
13
14.31
1.5
14.53
OPERATIONAL RISK
The RISK of loss arising from control/process inadequa- cies or failures, including DISASTER RECOVERY RISK, BUSINESS RECOVERY RISK, COLLATERAL RISK, KEY MAN RISK, OPERATIONAL ERROR RISK, and REGULATORY COMPLIANCE RISK. Also known as PROCESS RISK.
palgrave
0
28.33
13.7
0
15.89
15.9
11.27
13.75
16.14
OPIC
See OVERSEAS PRIVATE INVESTMENT CORPORATION.
palgrave
0
-1.29
14.7
0
23.52
18.8
16.52
3.5
18
OPM
Abbreviation for “other people’s money,” typically employed in describing a company’s use of financial LEVERAGE in its operations or in the context of a potential ACQUISITION.
palgrave
0
11.25
18.2
0
16.02
18.7
12.21
21
22.71
OPPORTUNITY COST
The cost or value lost in opting not to pursue the next best alternative. Analysis of opportunity costs is integral for those involved in INVESTMENT and CAPITAL EXPENDITURES, for example. Also known asECONOMIC COST.
palgrave
0
43.09
10.1
13
11.93
9.4
9.77
7.666667
13.93
OPTION-ADJUSTED ANALYSIS
Quantitative analysis that is performed on a SECURITY that has one or more EMBEDDED OPTIONS. The analysis may focus on determining the OPTION-ADJUSTED DURATION, OPTION-ADJUSTED CONVEXITY, and/or OPTION-ADJUSTED SPREAD.
palgrave
0
6
16
0
18.55
16.7
10.89
12.75
16.83
OPTION-ADJUSTED CONVEXITY
The CONVEXITY of a CALLABLE BOND, PUTABLE BOND, or other FIXED INCOME SECURITY with OPTIONALITY, which reflects the actual convexity of the security after adjusting for the effects of the EMBEDDED OPTION(s). The option-adjusted convexity of a cal- lable bond is given as:⎣⎦where Pnoncall is the price of the equivalent NONCALLABLE BOND, Pcall is the price of the callable bond, Cvx is the convexity of a noncallable bond, Dur is the DURATION of a noncallable bond, and Γ is the GAMMA of the option.Similar computations can be made for other option-embedded securities. See also OPTION-ADJUSTED DURATION, OPTION-ADJUSTED SPREAD, OPTION-ADJUSTED YIELD.
palgrave
0
20.76
18.6
18.2
13.99
21.2
10.03
23.666667
18.12
OPTION-ADJUSTED DURATION
The DURATION of a CALLABLE BOND, PUTABLE BOND, or other FIXED INCOME SECURITY with OPTIONALITY, which reflects the actual duration of the security after adjusting for the effects of the EMBEDDED OPTION(s). The option-adjusted duration of a callable bond is given as:⎡ P⎦where Pnoncall is the price of the equivalent NONCALLABLE BOND, Pcall is the price of the callable bond, Dur is the duration of a noncallable bond, and Δ is the DELTA value of the option.Similar computations can be made for other option-embedded securities. See also OPTION-ADJUSTED CONVEXITY, OPTION-ADJUSTED SPREAD, OPTION-ADJUSTED YIELD.OPTION-ADJUSTED DURATION, OPTION-ADJUSTED YIELD, OPTION- ADJUSTED CONVEXITY.FIXED STRIKE LOOKBACK OPTION.
palgrave
0
11.59
20.1
19.6
16.66
23.9
9.97
25
18.31
OPTION REPRICING
The practice of converting an OPTION that is OUT-OF- THE-MONEY into one with INTRINSIC VALUE by resetting the STRIKE so that the contract is IN-THE-MONEY. See also UNDERWATER.
palgrave
0
57.27
8.8
0
11.36
10.5
8.84
8
11.31
OPTIONAL REDEMPTION
The right granted to the ISSUER of a SECURITY, particularly those with long or perpetual MATURITIES, to repurchase or redeem the outstanding securities at a predefined fixed price, or a price thatsteps up over time. Optional redemption may be incorporated into the terms of HYBRID CAPITAL SECURITIES.
palgrave
0
22.24
16
0
13.76
15.8
10.85
18.25
18.76
OPTIONALITY
See CONVEXITY.
palgrave
0
-6.7
14.7
0
4.2
10.2
11.63
1
20.8
ORDER
Instructions from one party (e.g., BROKER or client) to a second party (e.g., DEALER or MARKET MAKER) to execute the purchase or sale of SECURITIES or other ASSETS. There are four broad classes of orders: MARKET S, LIMIT S, STOP S, and TIME S, each with their own variations related to time, price, and discretion.
palgrave
0
52.02
12.8
0
8.42
14.6
10.17
16.75
15.36
ORDER-DRIVEN MARKET
A physical or electronic marketplace where SECURITIES ORDERS are grouped in the books of INTERMEDIARIES such as PRINCIPALS, SPECIALISTS, or AGENTS, and are then matched according to certain auction-based rules, often related to price-time priority; many pub- lic EQUITY markets are order-driven. See also AUCTION, QUOTE-DRIVEN MARKET.
palgrave
0
22.24
16
0
16.95
19.2
12.53
18.75
18.76
ORDER GENERATION LOGIC
The mathematical instructions embedded in an ALGORITHM that dictate how a PARENT ORDER is to be parceled into sep- arate CHILD ORDERS for individual execution over a specific time horizon. See also ORDER PLACEMENT LOGIC, ROUTER LOGIC.
palgrave
0
35.78
12.9
0
13.11
13
11.38
12.75
14.97
ORDER IMBALANCE
An excess of purchase or sale ORDERS waiting to be filled via an EXCHANGE or OVER-THE-COUNTER that can disrupt LIQUIDITY and cause divergences between BIDS and OFFERS; in more extreme cases an imbalance can lead to temporary suspension of TRADING. An imbal- ance can arise from positive or negative news or rumors about a company or marketplace.
palgrave
0
42.55
14.4
0
11.78
16.7
11.42
19.25
17.01
ORDER PLACEMENT LOGIC
The mathematical instructions embedded in an ALGORITHM that indicate how each individual CHILD ORDER in a PARENT ORDER should be executed, e.g., as a LIMIT ORDER, a MARKET ORDER, a limit order that converts to a market order after a period of time, and so forth. See also ORDER GENERATION LOGIC, ROUTER LOGIC.
palgrave
0
27.66
16
0
10.04
14.7
9.42
17.75
17.39
ORDINARY SHARE
In the United Kingdom, COMMON STOCK.
palgrave
0
73.85
4.5
0
7.18
5.9
6.57
2
2.4
ORGANIC GROWTH
The natural business expansion a company gains in products/markets through its own resources, improvements, or innovations, rather than through external ACQUISITIONS.
palgrave
0
16.32
16.2
0
21.64
21.8
12.2
18.5
19.83
(OECD)
An international economic organization, comprised primarily of industrialized countries (and a small number of NEWLY INDUSTRIALIZED COUNTRIES) created to assist members in developing policies to promote eco- nomic growth and general financial stability.global oil prices over the short term. Member countries have at various points included Algeria, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela.
palgrave
0
7.19
19.7
0
18.69
23.5
14.34
22
20
ORIGINAL EXPOSURE METHOD
A regulatory method of computing SWAP CREDIT RISK, under the original 1988 BASLE ACCORD put forth by the BANK FOR INTERNATIONAL SETTLEMENTS, which focuses solely on future credit exposure (de facto ignoring ACTUAL EXPOSURE or MARK-TO-MARKET value). Since the methodology takes no account of ongoing mark-to-market value, it features higher future exposure risk factors. See also CURRENT EXPOSURE METHOD, INTERNAL RATINGS-BASED APPROACH.
palgrave
0
25.08
14.9
17.1
16.48
17.4
12.56
16.333333
16.02
ORIGINAL ISSUE DISCOUNT (OID)
The size of the price DISCOUNT to PAR VALUE at the time of a BOND’s issuance. Accretion of the price from OID to par value is treated as INTEREST income for TAX purposes.
palgrave
0
71.65
7.4
0
6.32
6.5
8.76
8.75
10.24
ORIGINAL MARGIN
See INITIAL MARGIN.
palgrave
0
59.97
5.6
0
5.35
6.8
14.31
0.5
1.2
OSAKA STOCK EXCHANGE (OSE)
The second largest STOCK EXCHANGE of Japan, originally established in 1878, consolidated in 1943, and reformed in 1949. In addition to electronic TRADING of individual STOCKS, the OSE lists and trades FUTURES and OPTIONS on the BENCHMARK NIKKEI 225 INDEX, in both standard and MINI form. See also TOKYO STOCK EXCHANGE.
palgrave
0
54.22
9.9
11.2
12
11.8
12.53
10.5
11.51