Money Market Definitions - Starting with O

Here is the list of terms associated with the money market, starting with alphabet O

 

 

OCB

Overseas Corporate Bodies, firms and societies which are held directly or indirectly, but ultimately, to the extent of at least 60% by NRls and trusts in which at least 60% of the beneficial interest is held irrevocably by NRls.

 

OFFER DOCUMENT OR PROSPECTUS

The official document issued by mutual funds prior to the launch of a fund describing the characteristics of the proposed fund to all its prospective investors. It contains information required by the Securities and Exchange Board of India, such as investment objective and policies, services, and fees. Individual investors are encouraged to read and understand the fund's prospectus.

 

OFFERING PERIOD

The period during which the initial offer to subscribe for the units of a scheme is open.

 

OFFER PRICE

The lowest price that a seller is willing to accept from a prospective buyer. In the case of a mutual fund with a sales charge, this price is the net asset value (NAV) plus the sales charge. In the case of no-load funds, it is the NAV.

 

OFFERING DATE

The date on which a distribution of stocks or bonds will first be available to the public.

 

OPEN-ENDED SCHEMES/ FUNDS

A fund whose units are redeemable at any time at asset value, Except for funds that no longer accept new unitholder, new units are offered continuously.

 

OPENING NAV

The NAV disclosed by the fund for the first time after the closure of an IPO.

 

OPTION

A device used to speculate or hedge in securities markets. Buying a "call" option gives an investor the right to buy 100 shares of a stock at a certain price within a specified time; buying a "put" option allows an investor to sell a stock under the same conditions.

 

OPPORTUNITY RISK

The risk that a better opportunity may present itself after you have already committed your money elsewhere.

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