OCC Prospectus
A prospectus published by the OCC and available to option traders upon request. It contains information on trading options and the risks involved.

OTC Bulletin Board
An electronic service that provides selected quotes on over-the-counter stocks.

Objective
A fund's investment objective states the financial goals it is aiming for, such as "growth," or "income."

Odd Lot
A quantity of securities that is smaller than the standard unit of trading, which is usually 100 shares.

Offer Price
The price at which the market maker will sell shares to investors.

Offer for Sale
A method of bringing a company to the market. The public can apply for shares directly at a fixed price. A prospectus containing details of the sale must be printed in a national newspaper.

Open-End Fund
An investment company that pools money from shareholders and invests in a variety of securities, including stocks, bonds, and money market instruments. They offer growth, income, or both, and the opportunity to invest in everything from a country or industry to the movements of the markets themselves. A mutual fund continually sells new shares to investors and redeems those that are tendered by shareholders. (Also known as "mutual fund.")

Open-End Management Company
A management company that is constantly issuing new shares.

Opening Transaction
Refers to a customer either buying or selling an option contract to open a new position.

Operating Expenses
The normal costs a mutual fund incurs in conducting business, such as the expenses associated with maintaining offices, staff, and equipment. There are also expenses related to maintaining the fund's portfolio of securities. These expenses are paid from the fund's assets before any earnings are distributed.

Option
A contract that entitles the buyer to buy (call) or sell (put) a predetermined quantity of an underlying securities for a specific period of time at a pre-established price.

Option Adjustments
Changes made in the terms of an option contract on ex-dividend date when the underlying stock pays a cash or stock dividend or when there is a stock split, etc.

Option Agreement
The agreement the customer must sign to trade options in which the customer agrees to abide by the rules of the listed option exchanges.

Option Class
The group of options, put or call, with the same underlying security.

Option Fund
A fund which trades options to increase the value of its shares. The fund may either be conservative or aggressive. A conservative fund, commonly called an "option income fund," may buy stocks and increase shareholders' income through the premium earned by writing options on the stocks within the portfolio. An aggressive fund, commonly called an "option growth fund," may buy options in securities that the fund manager thinks will fall or rise sharply in the near term.

Option Series
The group of options having the same strike price, expiration date, and unit of trading on the same underlying stock.

Options Clearing Corporation (OCC)
A clearing corporation owned jointly by the exchanges dealing in listed options. OCC is the central or main clearing corporation for listed options. Options traded on any SEC-regulated exchange can be settled through OCC.

Order Book Official (OBO)
An employee of certain exchanges who executes limit orders on behalf of the membership.

Order Department
The department within a brokerage firm that is responsible for sending the customers' orders to the proper market for execution.

Ordinary Shares
The most common form of share. Holders receive dividends which vary in amount in accordance with the profitability of the company and recommendations of the directors. The holders are the owners of the company. Also known as Common Stock.

Original Issue Zeros
Zero-coupon securities originally issued by a corporation, government, or governmental subdivision as zeros. A zero-coupon security not created by severing interest and principal payments from a preexisting bond.

Out-of-the-Money
Options with no intrinsic value such as a call when the market price is below the strike price of the call or a put when the market price is above the strike price of the put.

Over-The-Counter Market (OTC)
Comprised of a network of telephone and telecommunication systems over which unlisted securities and other issues trade.