Glossary
Not sure about the terminology? This is the place to find out what everything means.
O
Occupational pension
A type of pension scheme provided by an employer, who must make contributions into it.
OEIC
Open Ended Investment Company. A collective investment fund similar to a unit trust. The major differences are that OEICs quote a single price rather than a bid and offer price and they are governed by Company law rather than trust law. Most new funds launched today are established under the OEIC structure and it is widely predicted that, over time, most Unit Trusts will convert to OEICs.
Offer
This indicates that a shareholder is prepared to sell at a particular price.
Offer for Sale
One method by which a company can issue new shares and gain stock market listing. The company or its advisers invite the public to buy shares not yet in issue at a given price. Sometimes there is a minimum subscription level and if subscriptions fall below this level, the issue will be aborted.
Offer for Subscription
Here the company coming to the market prepares all the necessary documentation itself and invites applications for the shares. Very rarely used now.
Offer price
The price at which a market maker will sell shares to investors, therefore the price that the buyer pays. This is generally lower than the bid price. The difference between the two is known as the bid/offer spread.
Open offer
Often accompanies additional share placings by quoted companies and gives the right to claw back shares, usually at below the market price, that have been placed with instructions.
Opening purchase
A transaction in which the seller of an option becomes the writer.
Opening price
The price at which a stock starts dealing. Can refer to market opening or to when stock first became listed.
Optional / voluntary offer
An offer in which a client must make a decision in which to participate or not, e.g. Open Offer.
Options
The right (but not obligation) to buy or sell an underlying investment at a certain point in the future at the price agreed today.
Order
A dealing instruction submitted to Barclays Stockbrokers
Order expiry period
The number of trading days that you instruct Barclays Stockbrokers to monitor your order. This can be for a number of trading days up to a maximum of 30.
Ordinary shares
A common form of share. The holder of ordinary shares are the owners of that company, the holders also receive dividends which vary in amount.
Out of the money
When the exercise price is above, in the case of calls or below, in the case of puts, the current market price of the underlying security, that is, it has no intrinsic value.
Outstanding orders
All orders with a status of 'Pending' and 'Limit'. If you have 'Outstanding Orders' on your account there will be a difference between the 'Cash Available to Invest' sum and the 'Amount Available to Invest' sum displayed in Account View. You can view your list of 'Outstanding Orders' via the Order Status area.
Oversubscribed
Circumstances where people have applied for more shares than are available in a new issue.
