Omitted Dividend
Dividend that had to be declared at the board meeting but is not taken up by the directors for the time being. This may be because the company has run into financial losses and it thinks better to conserve the company’s resources than to pay out cash. Omitted dividend typically causes a fall in the company’s share prices, particularly if a dividend was eagerly awaited.
Open Economy
An economy which engages in international trade, without many of the import quotas and restrictive import policy. The Indian economy is only partly open.
Open Offer
A secondary market offering that is similar to a rights issue in which a shareholder is given the opportunity to purchase stock at a price that is lower than the current market price. The purpose of such an offer is to raise cash for the company.
Operating Profit or Loss
These measure a company’s operating efficiency by comparing various income and expenditure figures from the balance sheet and profit and loss account. Some of these ratios are: sales to cost of goods sold, operating income to operating expenses, net profit to gross income, net income to net worth. These ratios are compared with the company’s previous results, and the industry averages.
Opportunity Cost
The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.
Where there are alternative investment possibilities, a company must compare the benefit derived from choice A with the possible benefit fro choice B.
Options Contract
An options contract confers the right to buy or sell a specific quantity of a particular asset at a specific price at or before some date of the future. The obligation rests only with the seller or the writer of the contract. If the buyer chooses not to exercise his option, the maximum loss he suffers is the premium he has paid to the write of the contract.
Option Holder
option holder is the person who hasn’t exercised or sold the call or put option he has bought. If he is a call option holder he is probably waiting for the price to rise, whereas if he is a put option holder he may be waiting for the price to fall.
Option Money
if it is a traded option the the price one pays to buy an option also called premium is termed as option money , . The price of a call option is also known as call money, and that for a put option as put money.