| |
 |
Offer Price |
| |
The price at which a fund
manager or market maker will sell shares to you.
(ie offer them to you) The offer price is higher
than the Bid Price which is the price at which they
will buy shares from you. (ie they will make a bid).
This is one way in which a market maker turns a
profit. A fund manager may use the difference to
cover dealing administration costs. |
 |
 |
|
Offshore |
| |
Located or based outside
of one's national boundaries. Typically these locations
have preferential tax treatments and fund legislation. |
|
|
|
Open-ended Funds |
| |
These are funds where units
or shares can be bought and sold daily and where
the number of units or shares in issue can vary
daily. |
|
|
|
|
|
|
|
|
|
|
Opportunistic Investing |
| |
A general term describing any fund
that is opportunistic in nature. These types of funds
are usually aggressive and seek to make money in the most
efficient way at any given time. Investment themes are
dominated by events that are seen as special situations
or short-term opportunities to capitalise from price fluctuations
or imbalances, such as initial public offering. |
| |
|
|
|
|
Option |
| |
A privilege sold by one party to
another that offers the buyer the right, but not the obligation,
to buy (call) or sell (put) a security at an agreed-upon
price during a certain period of time or on a specific
date. Options are extremely versatile securities that
can be used in m any different ways. |
| |
|
|
|
|
|
| |
Traders use options to speculate,
which is a relatively risky practice, while hedgers use
options to reduce the risk of holding an asset. |
| |
|
|
|
|
Over the Counter- OTC |
| |
A security traded in some context
other than on a formal exchange such as the LSE, NYSE,
DJIA, TSX, AMEX, etc. A stock is traded over the counter
usually because the company is small and unable to meet
listing requirements of the exchanges. Also known as unlisted
stock, these securities are traded by brokers/dealers
who negotiate directly with one another over computer
networks and by phone. The Nasdaq, however, is also considered
to be an OTC market, with the tier 1 being represented
by companies such as Microsoft, |
| |
|
|
|
|
