Overlay Strategy

Overlay Strategy Pensions sponsors use this strategy to minimize the disruption of the money managers’ activities by using futures for allocation of assets. Random Finance Terms for the Letter O Out Trade Outright Rate Outsourcing Outstanding Share Capital Outstanding … [Read more...]

Overnight Delivery Risk

Overnight Delivery Risk Risk arising from difference in time zones because settlement centers are located in different places. Situations may arise where delivery or payment has to be carried out without accurate knowledge of whether funds have been credited into the account at the … [Read more...]

Overnight Repo

Overnight Repo A single day repurchase agreemen Random Finance Terms for the Letter O Overreaction Hypothesis Overseas Private Investment Corporation (OPIC) Overshooting Oversubscribed Issue Oversubscription Privilege Over-the-Counter Market … [Read more...]

Overperform

Overperform The performance of a security when it is expected to do better than the market. Random Finance Terms for the Letter O Overreaction Hypothesis Overseas Private Investment Corporation (OPIC) Overshooting Oversubscribed Issue Oversubscription … [Read more...]

Overreaction Hypothesis

Overreaction Hypothesis Theory that exaggerated price fluctuations occur because investors react out of proportion to unexpected information and news. Subsequent price corrections occur in the market. Random Finance Terms for the Letter O Overreaction Hypothesis Overseas … [Read more...]

Overseas Private Investment Corporation (OPIC)

Overseas Private Investment Corporation (OPIC) Agency of U.S. Government set up to aid businesses interested in overseas investments. Offers risk analysis and management services to enable domestic business growth in foreign markets. Random Finance Terms for the Letter … [Read more...]

Overshooting

Overshooting Reflection of an increased prepayment rate as soon as an MBS crosses the refinance threshold. Most commonly occurs when the WAC of underlying debt security pool has not crossed refinancing limitations for two or three years following the date of issue. Random … [Read more...]

Oversubscribed Issue

Oversubscribed Issue Share or bond issue where all of the issued securities are not taken up by buyers. Underwriters allocate excess shares and bonds among existing shareholders. Typically happens when new issues are in great demand. Random Finance Terms for the Letter … [Read more...]

Oversubscription Privilege

Oversubscription Privilege Term used with Rights issues. Arrangement that allows shareholders the right to apply for ownership of shares that are not subscribed to. Random Finance Terms for the Letter O Overreaction Hypothesis Overseas Private Investment Corporation … [Read more...]

Over-the-Counter Market (OTC)

Over-the-Counter Market (OTC) Market that is not restricted to one location like a stock exchange. Decentralized marketplace where buyers and sellers based in different locations are linked through telephones or computers. The securities traded are not listed on an exchange. For … [Read more...]