Similar financial terms
Reopen an issueThe Treasury, when it wants to sell additional securities, will occasionally sell more of an existing issue (reopen it) rather than offer a new issue.
Opening sale
A transaction in which the seller's intention is to create or increase a short position in a given series of options.
Opening purchase
A transaction in which the purchaser's intention is to create or increase a long position in a given series of options.
Opening price
The range of prices at which the first bids and offers were made or first transactions were completed.
Opening, the
The period at the beginning of the trading session officially designated by the exchange during which all transactions are considered made "at the opening".
Open outcry
The method of trading used at futures exchanges, typically involving calling out the specific details of a buy or sell order, so that the information is available to all traders.
Open-market purchase operation
A systematic program of repurchasing shares of stock in market transactions at current market prices, in competition with other prospective investors.
Open-market operation
Purchase or sale of government securities by the monetary authorities to increase or decrease the domestic money supply.
Open-end mortgage
Mortgage against which additional debts may be issued.
Open-end fund
Also called a mutual fund, an investment company that stands ready to sell new shares to the public and to redeem its outstanding shares on demand at a price equal to an appropriate share of the value of its portfolio, which is computed daily at the close of the market.
Open repo
A repo with no definite term. The agreement is made on a day-to-day basis and either the borrower or the lender may choose to terminate. The rate paid is higher than on overnight repo and is subject to adjustment if rates move.
Open (good-til-cancelled) order
An individual investor can place an order to buy or sell a security. That open order stays active until it is completed or the investor cancels it.
Open interest
The total number of derivative contracts traded that not yet been liquidated either by an offsetting derivative transaction or by delivery.
Open contracts
Contracts which have been bought or sold without the transaction having been completed by subsequent sale or purchase, or by making or taking actual delivery of the financial instrument or physical commodity.
Open account
Arrangement whereby sales are made with no formal debt contract. The buyer signs a receipt, and the seller records the sale in the sales ledger.
Open market purchase
An order placed by an insider, after all appropriate documentation has been filed, to buy restricted securities openly on an exchange.
Buy on opening
To buy at the beginning of a trading session at a price within the opening range.
At the opening order
In context of general equities, market order or limited price order that is to be executed at the opening (and corresponding price) of the stock or not at all, and any such order or portion thereof not so executed is to be treated as cancelled.
Open Outcry
Method of public auction required to make bids and offers in the trading pits or rings of commodity exchanges.
Overnight position
Trader's long or short position in a currency at the end of a trading day.
Take a position
To buy or sell short; that is, to have some amount that is owned or owed on an asset or derivative security.
Short position
Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make "good delivery" to the buyer. Eventually, the shares must be bought to close out the transaction. This technique is used when an investor believes the stock price will go down.
Position diagram
Diagram showing the possible payoffs from a derivative investment.
Position
A market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into. The buyer of a commodity is said to have a long position and the seller of a commodity is said to have a short position .
Modigliani and Miller Proposition II
A proposition by Modigliani and Miller which states that the cost of equity is a linear function of the firm's debt/equity-ratio.
Modigliani and Miller Proposition I
A proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions. Also called the irrelevance proposition.
Long position
An options position where a person has executed one or more option trades where the net result is that they are an "owner" or holder of options (i. e. the number of contracts bought exceeds the number of contracts sold). Occurs when an individual owns securities. An owner of 1,000 shares of stock is said to be "Long the stock."
Limitation on asset dispositions
A bond covenant that restricts in some way a firm's ability to sell major assets.
Changes in Financial Position
Sources of funds internally provided from operations that alter a company's cash flow position: depreciation, deferred taxes, other sources, and capital expenditures.
Clear a position
To eliminate a long or short position, leaving no ownership or obligation.
Composition
Voluntary arrangement to restructure a firm's debt, under which payment is reduced.
Position liquidation
The closing out of a long position. The term is sometimes used to denote closing out a short position, but this is more often referred to as covering.
