Financial Dictionary

This dictionary contains:
24549
financial terms

Oversold




Oversold

Used in the context of general equities. Technically too low in price, and hence a technical correction is expected.

RELATED TERMS
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Price
The cost of a good or service to the consumer.

Correction
Reverse movement, usually downward, in the price of an individual stock, bond, commodity, or index.



SIMILAR TERMS
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Over the counter (OTC)
A decentralized market (as opposed to an exchange market) where geographically dispersed dealers are linked by telephones and computer screens.

Over the Counter Bulletin Board
A regulated electronic trading service offered by the National Association of Security Dealers (NASD) that shows real-time quotes, last-sale prices, and volume information for over-the-counter (OTC) equity securities.

Over the counter market
Stock exchange for newer and smaller companies, and those that do not wish to meet all the major stock exchanges' rules.

Over the counter option
An option traded off-exchange, as opposed to a listed stock option. The OTC option has a direct link between buyer and seller, has no secondary market, and has no standardization of striking prices and expiration dates.

Overadvance
When a company obtains a loan in order to increase their inventory prior to an expected increase in sales volume.

Overage
Apples mainly to convertible securities. Difference between how much common stock one party must sell and the other wishes to buy for the same amount of convertible in a swap.

Overall FTC limitation
A limitation on the FTC equal to foreign source income times US tax on worldwide income divided by worldwide income.

Overall market price coverage
Total assets less intangibles divided by the total of the market value of the security issue and the book value of liabilities and issues having a prior claim.

Overallotment
Selling more securities than are available in an IPO.

Overbought
Used in the context of general equities. Technically too high in price, and hence a technical correction is expected.

Overbought oversold indicator
An indicator that attempts to define when prices have moved too far and too fast in either direction and thus are vulnerable to reaction.

Overcapitalization
Said to occur when a firm cannot service its debt even though its debt-equity ratio is not excessive.

Overcollateralization
The posting of more collateral than is needed to obtain financing.

Overdraft
An arrangement by which a customer can withdraw more from an account than has been deposited in it, up to an agreed limit; interest on the debt is calculated daily.

Overdraft checking account
A checking account associated with a line of credit that allows a person to write checks for more that the actual balance in the account, with a finance charge on the overdraft.

Overdue
Owing, late in being paid.

Overextended
Describes a business owing fat more than the value of its current assets.

Overfunded pension plan
A pension plan that has a positive surplus (i.e., assets exceed liabilities).

Overhadging
A hedged position in which the offsetting position is for a greater amount than the underlying position held by the firm entering into the hedge.

Overhang
Used in the context of general equities. Sizable block of securities or commodities contracts that, if released on the market, would put downward pressure on prices; prohibits buying activity that would otherwise translate into upward price movement.

Overhanging bond
A concertible bond issue that investors do not convert into common stock because the stock has not appreciated in value.

Overhead
The various expenses of operating a business that can't be charged to any one product, process or department.

Overheating
Economic expansion at a rate that cannot be sustained.

Overinvestment
In corporate finance, this refers to managers not acting in the best interests of the shareholders and investing too much (potentially in negative net present value projects).

Overissue
An excess of issued shares over authorized shares.

Overlap the market
Used in the context of general equities. Create a crossed market by expressing a willingness to sell on the bid side of the market and buy on the offer side.

Overlapping debt
The portion of debt of political subdivisions or neighboring special districts that a municipality is responsible for.

Overlay strategy
A strategy of using futures for asset allocation by pension sponsors to avoid disrupting the activities of money managers.

OVERLY EMPLOYEES Credit Union
OVERLY EMPLOYEES is a credit union with head office in GREENSBURG, PA

Overnight delivery risk
A risk brought about because differences in time zones between settlement centers require that payment or delivery on one side of a transaction be made without knowing until the next day whether the funds have been received in an account on the other side.

Overnight index swap
An interest rate swap involving the overnight rate being exchanged for some fixed interest rate.

Overnight position
A broker dealer's position in a security at the end of a trading day.

Overnight rate
The interest rate at which a depository institution lends immediately available funds (balances within the central bank) to another depository institution overnight.

Overnight repo
A repurchase agreement with a term of one day.

Overnight trade
A term used by the London Stock Exchange to denote that a transaction was reported after 17:15 on one day and before 7:15 on the following day.

Overperform
To appreciate at a rate faster than appreciation of the overall market.

Overproduction
When supply exceeds demand, which soon leads to cutbacks in production, unemployment, and a recession.

Overreaching
Used in the context of general equities. Creating artificial volume in a stock through activity not generated by normal-natural buyers and sellers in the market.

Overreaction hypothesis
The supposition that investors overreact to unanticipated news, resulting in exaggerated movements in stock prices followed by corrections.

Overrun
In the context of project financing, the amount of capital expenditures or funding above the original estimate to complete the project.

Oversea-Chinese Banking
Oversea-Chinese Banking is a top Singaporean corporation in the field of banking, and its estimated market value is 10,980 million US dollars.

Overseas and General Limited
Overseas and General Limited is a large Australian company in the field of materials. Their Australian Stock Exchange (ASX) code is OGL.

Overshooting
The tendency of a pool of MBS to reflect an especially high rate of prepayments the first time it crosses the threshold for refinancing, specially if two or more years have passed since the date of issue without the weighted average coupon of the pool crossing the refinancing threshold.

Overstay
The act of holding an investment for too long.

Oversubscribed
Of a new share issue, one for which there are more buyers than shares available.

Oversubscribed issue
Investors are not able to buy all the shares or bonds they want, so underwriters must allocate the shares or bonds among investors.

Oversubscription
The excess number of shares or bonds that investors want to buy but are not available due to high demand.

Oversubscription privilege
In a rights issue, arrangement by which shareholders are given the right to apply for any shares that are not taken up.

Overtime
Time worked in excess of an agreed number of bouts per day or week.

Overtrading
A situation where a company tries to produce and sell goods with too little capital.

Overvalued
A stock price that is seen as too high according to the company's price-earnings ratio, expected earnings, or financial condition.

Overweight
Usually refers to recommendation that leads an investor to increase their investment in a particular security or asset class. The increase is usually with respect to a benchmark.

Overwithholding
Deducting and paying too much tax that may be refunded to the taxpayer or applied against the next period's obligation.

Overwrite
A type of covered-call strategy that consists of writing call options on stocks that the writer already owns to generate maximum current income from options premiums and dividends.

Overwriting
A speculative option strategy that involves selling call or put options on stocks that are believed to be overpriced or under priced; the options are expected not to be exercised.



PREVIOUS AND NEXT TERMS
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Overproduction
When supply exceeds demand, which soon leads to cutbacks in production, unemployment, and a recession.

Overreaching
Used in the context of general equities. Creating artificial volume in a stock through activity not generated by normal-natural buyers and sellers in the market.

Overreaction hypothesis
The supposition that investors overreact to unanticipated news, resulting in exaggerated movements in stock prices followed by corrections.

Overrun
In the context of project financing, the amount of capital expenditures or funding above the original estimate to complete the project.

Overshooting
The tendency of a pool of MBS to reflect an especially high rate of prepayments the first time it crosses the threshold for refinancing, specially if two or more years have passed since the date of issue without the weighted average coupon of the pool crossing the refinancing threshold.

Oversold

Overstay
The act of holding an investment for too long.

Oversubscribed
Of a new share issue, one for which there are more buyers than shares available.

Oversubscribed issue
Investors are not able to buy all the shares or bonds they want, so underwriters must allocate the shares or bonds among investors.

Oversubscription
The excess number of shares or bonds that investors want to buy but are not available due to high demand.

Oversubscription privilege
In a rights issue, arrangement by which shareholders are given the right to apply for any shares that are not taken up.

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This dictionary contains 24549 terms.







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