Glossary of Terms

The information presented here is not intended as financial, investment, tax or legal advice and is provided for educational purposes only.
Offer to Bid
The rate of return for a unit investment trust which shows total return to date. This return assumes payment of all sales charges at the time units are purchased and excluded any unpaid deferred sales charges.
Offering Price
The price at which one share of a mutual fund may be purchased; it is net asset value per share plus the maximum applicable sales charge.
Office of the Comptroller of the Currency (OCC)
A U.S. federal agency that serves to charter, regulate and supervise the national banks and the federal branches and agencies of foreign banks. The Office of the Comptroller of the Currency (OCC) is headed by the Comptroller of the Currency, who is appointed by the president and approved by the Senate. See Comptroller/OCC.
On-Balance Volume Index
This is the ratio of shares traded to upward price movement. It was developed to help spot stocks that have been moving higher on increasing volume — a sign that there is developing interest in the company on Wall Street. The calculation is a complicated one, but goes like this: The daily volume and price change for the latest four weeks are compared with the same data for the previous four weeks and then related to trading on days when the stocks price rose. The index will be higher for stocks that are moving up on increasing volume, and can be an indication of significant buying activity.
Open-End Management Company
An investment company that manages a mutual fund that continually offers shares for sale to the public and redeems shares at their current net asset value, which may be higher or lower than the purchase price. Most mutual fund companies are open-end management companies, because they sell and redeem shares of the funds they manage. On occasion, an open-end management company may decide to close itself to new investors, usually when it decides it is too large.
Operating Cash Flow
Cash produced by a company's operations, equal to net income plus depreciation and change in accounts payable, minus change in accounts receivable and change in inventories. Operating cash flow is useful for judging the quality of a company's earnings. If a company continuously produces strong earnings but negative operating cash flow, it's a sign that those earnings may be attributable more to accounting techniques than operations.
Operating Expenses
The day-to-day costs of running a business paid from a fund's assets before earnings are distributed to shareholders. See Expense Ratios.
Operating Income
The sum of revenues over the past four quarters minus the sum of operating expenses over the past four quarters.
Operating Margin
A measure of profitability that considers only current operations. Operating margin is calculated by dividing the sum of a company's operating income over the past four quarters by the sum of its revenues over the past four quarters. The result is expressed as a percentage. Operating margin, unlike net margin, is not affected by one-time credits and charges or accounting adjustments for past activities.
The right to buy or sell an investment in the future at a pre-determined price. This right may become valuable depending on market movements.
Ordinary Dividend
A dividend of net investment income or a realized short-term capital gain.
Other Current Assets
Typical accounts include prepayments, deferred charges and amounts (other than trade accounts) due from parents and subsidiaries. Also includes any other current assets that are not assigned to cash and equivalents, receivables or inventories.
Over the Counter (OTC)
A decentralized market (as opposed to an exchange market) where geographically dispersed dealers are linked by telephones and computers. The market is for securities not listed on a stock or derivatives exchange.