Business glossary

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Obligations - Technically defined as "amount of orders placed, contracts awarded, services received, and similar transactions during a given period which will require payments during the same or a future period."

Offer Rates - The rate at which a market maker is willing to sell the quoted asset. Also known as ask rates.

Offering Statement - In the United States, a shortened registration statement required by the Securities and Exchange Commission on debt issues with less than a 9-month maturity.

Oligopoly - A market dominated by so few sellers that action by any of them will impact both the price of the good and the competitors.

One-Stop Capital Shops - OSCSs are the SBA's contribution to the Empowerment Zones/Enterprise Communities Program, an interagency initiative that provides resources to economically distressed communities.

Open-end Fund - A mutual fund in which the amount of money under management grows/shrinks as investors buy/sell the fund.

Operating Leverage - The trade-off between fixed and variable costs in the operation of the firm.

Ordinary Interest - Simple interest based on a year of 360 days, contrasting with exact interest having a base year of 365 days.

Outlays - Net disbursements (cash payments in excess of cash receipts) for administrative expenses and for loans and related costs and expenses.

Out-of-the-money option - An option that has no value if exercised immediately.

Outward Swap - Purchasing foreign currency today and reselling it at a forward rate against the domestic currency.

Owner's Draw - Amount of money taken from the business by the owner.

Ownership-specific Advantages - Property rights or intangible assets, including patents, trademarks, organizational and marketing expertise, production technology and management, and general organizational abilities, that form the basis for the multinational’s advantage over local firms.