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Welcome to our Glossary section! We are very happy to see you here! This is the place where we will do our best to include as many terms from the accounting and financial world as possible so that we fully respond to your research and business needs.

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Ostrich: An investor who neglects important information or other factors influencing the market or the stocks’ price. The terms comes from the resemblance with the animal’s behavior which in danger hides its head into the sand.

Opportunity costs: Costs arising from keeping of a certain asset, expressed as a missed income which would have been realized if keeping an alternative asset instead.

Overnight money:Money which is traded on the interbank market and is due to the creditor in the beginning of the following working day.

Overdraft: A debit (negative) balance of a current account, sometimes with a status of a loan.

Oligopoly: A union of big companies with the purpose of increasing the market presence and modeling the market conditions.

Operational activity: The basic activity of the company which generates income, as well as other activity which is not investment or financial.

Offshore: The offshore jurisdictions are locations which apply considerably less regulations and maintain considerably lower corporate tax rates. Another significant part of the offshore jurisdictions is the opportunity for full anonymity of the owners of legal entities. Registering a company in an offshore location, the investor can realize serious savings on his tax burden.

Ordinary shares: Shares which secure equal rights to all of the shareholders with reference to the profit, the right for voting, the liquidation quota, etc.

Off-balance-sheet financing: Investments in a business which are not presented in the balance sheet. This form of financing is used when the company has used loans which amount is close to the maximum allowed by the law or when the company is willing to avoid an increase of its indebtedness in order to prevent uncertainty in the price levels of its shares on the stock markets. During the last years, the institutions which are responsible for controlling the companies’ financial reports are more and more insisting on more exhaustive and open preparation of the financial reports.

Overtrading: Overtrading is when a certain company is working while lacking working capital. The lack of enough cash makes impossible the timely payment of remunerations and taxes, as well as the payments to the trade creditors.

Optimum firm: A firm which production is produced with minimum average expenses involved. Optimum is possible only with companies which average costs, graphically represented have the form of the letter U. In this situation the optimum is possible only for a short period of time.

Overaccumulation: Investing a considerable part of the income which leads to a restriction of the current consumption. Investing in projects with low percent of return.

Optimal peg: Defining the maximum of the cash amount in circulation with the purpose of stabilizing the prices of the traded goods or a balance in the trading to be reached as well as in the inflation level in a certain economy.

Opportunity cost: The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.

Opportunistic behavior: The behavior of a partner on the stock market, who has an informative or other advantage. For example, he has obtained additional information that the others don’t have access to.

Option for purchase: This is the right of the lessee to buy the object of the lease deal, as well as the right of the lessor to request from the lessee to buy it.