FINANCIAL GLOSSARY








Below is a glossary of financial terms written by us.
Simply click on a term to access its definition.
[For a correct use of this glossary, please consult these "notes"]

puce OEM

[Original Equipment Manufacturer]
A company which sells under its name the products of another company, or which manufactures them by utilising such products.

puce Offering Circular

See Private Placement Memorandum

puce Operating Ratio

A company's operating expenses divided by its operating revenues, or more generally, any of a number of ratios measuring a company's operating efficiency, such as sales to cost of goods sold, net profits to gross income, operating expenses to operating income, and net profit to net worth.

puce Option / Warrant

A contractual right to purchase or sell an item (such as stock) at a future time or within a specified period at a specified price against payment of the option price.

puce Optionee

The holder of an option.

puce Ordinary Shares

A unit of ownership of a corporation.
In the case of a public company, the stock is traded between investors on various exchanges.
Owners of common stock are typically entitled to vote on the selection of directors and other important events and in some cases receive dividends on their holdings.
Investors who purchase common stock hope that the stock price will increase so the value of their investment will appreciate.
Common stock offers no performance guarantees.
Additionally, in the event that a corporation is liquidated, the claims of secured and unsecured creditors and owners of bonds and preferred stock take precedence over the claims of those who own common stock.

puce Organisational Meeting

In the public offering process, the first meeting after the underwriters have been selected, attended by representatives of the issuer, the underwriters, their respective lawyers and the issuer's accountants.
The meeting is spent on reviewing the timeable for the proposed offering and on familiarising the underwriters and their lawyers with the company's business.
See also All Hands Meeting.

puce OTC

[Over-The-Counter]
A security which is not traded on an exchange, usually due to an inability to meet listing requirements.
For such securities, broker/dealers negotiate directly with one another over computer networks and by phone.
Also called unlisted.

puce Out of the Money Option

A call option the exercice price of which is higher than the current market price of the security it allows to purchase.

puce Outside Director

See Independent or Outside Director.

puce Outstanding Stock

The shares of a corporation's stock that have been issued and are in the hands of the public.

puce Over-allotment Option

The option granted to an underwriter in a public offering giving it the option, for a specified number of days after the effective date, to purchase additional securities from the issuer (usually up to 15% of the shares being sold) at the initial price to the public, for the purpose of covering over-subscriptions for the securities.
See also Green Shoe.

puce Overwriting

Strategy of selling call or put options in quantity, hoping that they will not be exercised.





 

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