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Abbreviations / Acronyms

Definitions – O


A position or financial state you wish to achieve. Well-defined objectives are critical to the success of any money management plan because they provide your plan with a sense of purpose and a benchmark against which you can measure your progress.



Another name for debt.



The second party of in a bond. The first party, the surety, agrees to answer to the obligee for the default, failure to perform, or dishonesty of a third party, the principal.


Odd Lot:

An uneven number of securities that represents less than a board lot.


Off-Balance Sheet Instruments:

A contractual principal or notional amount that does not appear as an asset or liability on a traditional balance sheet. The are two broad categories:

(1) credit-related arrangements.

(2) derivatives.


Offer to Purchase (Real Estate):

A formal, legal agreement which offers a certain price for a specified real property. The offer may be firm (no conditions attached) or conditional (certain conditions must be fulfilled).


Ombudsman for Banking Services and Investments

An alternative, industry-sponsored resolution service established in 2002. Complaints from consumers of banks, IDA members, MFDA members, Investment Funds Institute of Canada member firms, and most federally regulated trust and loan companies will be reviewed provided the firm was unable to resolve the matter. Ombudsman reviews are based on fairness and industry best practices.


Open-End Fund:

An open-end mutual fund continuously issues and redeems units, so the number of units outstanding varies from day to day. Most mutual funds are open-end funds.


Open Interest:

In options markets, the number of outstanding contracts for a particular series of options.


Open Mortgage:

A mortgage agreement which allows the borrower to repay the debt more quickly than specified and usually without prepayment charges.


Open Order:

Known as good-till-cancelled or GTC, is when you give your stockbroker a limit order that is valid until you cancel it.


Opportunely Costs:

Money or income that is forgone as a result of missed opportunities.



(1) Call option:A contract sold for a price that gives the holder the right to buy from the writer of the option over a specified period a specified amount of securities at a specified price.

(2) Put option:A contract sold for a price that gives the holder the right to sell to the writer of the contract over a period a specified amount of securities at a specified price.


Ordinary Annuity:

A series of equal payments over a fixed number of years where the payments are made at the end of each period.


Original Maturity:

Maturity at issue. For example, a 5-year note has an original maturity at issue of 5 years; one year later it has a current maturity of 4 years.


OSC - Ontario Securities Commission (SEC):

Agency created by the Ontario Government to protect investors in securities transactions by administering various securities acts.



If an option contract expires when the strike price is on the wrong side of the market price, the contract is out of the money.


Output Gap:

When setting monetary policy, the Bank of Canada's goal is to align interest rates with the non-inflationary rates of economic activity. Finding the right mix involves an estimate of the "optimum growth rates" for the economy. The difference between the optimum rates and the estimated actual rates is the output gap.



The withdrawal from a bank account of an amount greater than the positive balance in the account. Often used to refer to a negative balance in one's account.


Over-The-Counter (OTC) Market:

Market created by dealer trading as opposed to the auction market prevailing on organized exchanges.

This Glossary of financial terms was created by Fiscal Agents Financial Information Services, Research Department. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, mechanical, electronic, photocopying, recording, or otherwise, without the prior written permission of Fiscal Agents. Copyright Fiscal Agents © 2000. All Worldwide Rights Reserved. Click to contact Glossary editor or see the permissions page.

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