Dow Theory Forecasts

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Odd Lot

Refers to an exchange transaction of less than the typical 100-share unit of a stock.

Offer

The lowest price at which a particular security is being offered for sale. Also known as the asked price.

On-line Investing

Investing via the Internet using a computer.

Open-End Investment Company

A mutual fund that issues new shares whenever investors want to buy. These shares are redeemable when the investor wants to sell them back to the issuing company.

Open Interest

The number of outstanding option contracts which have neither been exercised nor reached expiration for a particular security at a particular time.

Open Order

An order to buy or sell a security that remains "open" until it is either executed or cancelled. Technically known as a "Good 'Til Cancelled Order."

Operating Income

Calculated by deducting selling, general, and administrative expense from gross profit.

Option

A right to buy (call) or sell (put) a fixed amount of a security at a specific price within a specific period of time.

Optional Cash Payment

For those participating in a Dividend Reinvestment Plan, it's the ability to buy additional shares of stock directly from a company. Also referred to "OCP."

OTC

"Over the Counter," which refers to any transaction in securities that does not occur on an organized securities exchange but rather via an electronic or telephone network.

Overbought

An opinion that a security (or the overall market) is overvalued due to recent vigorous buying activity and that a downward correction is likely.

Oversold

An opinion that a security (or the overall market) is undervalued due to recent vigorous selling activity and that an upward correction is likely.

Over-the-Counter

See OTC