Stock Market Terms By Letter: O


Odd Lot: A parcel of shares which is less than a Marketable or Round Lot.
Open Order: An order for an unlimited number of shares at a fixed price which is good till cancelled.Option: The right to take up certain securities at a pre-determined price on or before a pre-determined date.

Ordinary Share: A certificate of part ownership of limited company, with the right to all assets after paying off creditors, debenture holders and preference shareholders.

Over-the-counter (OTC): Trading of securities outside of recognized stock exchanges. The term is usually only used in the US.

Overbought: A market condition characterized by speculators drastically increasing their long positions. Also, in terms of technical analysis, it refers to prices which have risen too sharply and too quickly in relation to underlying fundamental factors. The opposite is Oversold.

Oversold: A market condition characterized by speculators substantially increasing their short positions. Also, a technical analysis situation where prices have fallen too sharply and quickly in relation to underlying fundamental factors.

Overdraft (OD): An amount owing to a banker on a current account.

Overheating (of the market): Refers to a stock market situation in which stock prices are rising too fast and trading is taking place at heavy volumes.

Over Subscription: Refers to a situation when applications are received for more shares, debentures etc, than the number put on the market. Common in most new issues at the time of listing on the KLSE and SES.