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Open‑End Lease An open‑end lease (also called a finance lease) is an agreement in which the lessee makes periodic payments during the lease term and is responsible for a final “balloon” payment at lease end. That final payment equals the difference between the contract’s estimated residual value and the asset’s fair market value at termination….

Open‑End Fund Key takeaways An open‑end fund pools investor money into a professionally managed portfolio and issues or redeems shares on demand. Shares are priced at the fund’s net asset value (NAV), calculated daily for mutual funds; most ETFs are also open‑end but trade intraday. Open‑end funds offer diversification and liquidity but may hold cash…

Open‑End Credit Open‑end credit (also called revolving credit) is a type of loan that lets a borrower draw funds repeatedly up to a preapproved limit and repay over an indefinite period. There’s no fixed payoff date; as you repay, your available credit is restored. How it works A lender sets a credit limit based on…

Open Cover: Meaning, How It Works, and Requirements Key takeaways * Open cover is a form of marine cargo insurance that provides blanket coverage for multiple shipments under a single policy. * It’s commonly used by companies that make frequent or high-volume international shipments to avoid arranging insurance for each voyage. * Policies can be…

Open Banking Open banking is a set of practices and technologies that allow consumers to share their financial data securely with third-party providers through application programming interfaces (APIs). By enabling banks and fintechs to exchange account and transaction information (with customer consent), open banking fuels new financial products and services while reshaping how consumers manage…

Open Architecture Open architecture describes a financial institution’s approach of offering both its own (proprietary) products and third‑party products to clients. The goal is to let advisers recommend the best available solutions for a client’s needs, rather than being limited to the firm’s in‑house offerings. Properly implemented, open architecture reduces conflicts of interest and creates…

Open: What It Means, How It Works, and Types Definition In financial markets, “open” refers to either: * the start of the trading period on an exchange (when orders become active), or * an order that remains active until it is executed, canceled, or expires. Market open The market open marks the beginning of the…

OPEC Basket Overview The OPEC Basket (also called the OPEC Reference Basket or ORB) is a weighted average of crude oil prices reported by member countries of the Organization of the Petroleum Exporting Countries (OPEC). It serves as a reference benchmark for tracking OPEC members’ collective oil revenue and for setting organizational price targets, but…

Operating Company / Property Company (Opco/Propco) Deals An opco/propco structure splits a business into two affiliated entities: the operating company (opco), which runs the core business, and the property company (propco), which owns the revenue-generating real estate. The two entities typically enter into lease or rental arrangements so the opco can use the properties while…

Opco Key takeaways An opco (operating company) runs day‑to‑day business operations but does not own real estate in an opco/propco structure. A propco (property company) owns the real estate assets and related debt; the opco leases those assets. Separating operations from property ownership can improve the operating company’s credit profile, reduce on‑balance‑sheet debt, and create…

Opaque Pricing Opaque pricing is a strategy where sellers offer lower, hidden prices to certain customers without revealing full details (such as the brand or exact product) until after purchase. It is a form of price discrimination aimed at price‑sensitive buyers and is commonly used to move excess inventory while protecting a brand’s full‑price channels….

Ontario Teachers’ Pension Plan Board (OTPPB) Overview The Ontario Teachers’ Pension Plan Board (OTPPB) manages the defined-benefit pension plan for public school teachers in Ontario, Canada. Established in 1990, it has grown into one of Canada’s largest institutional investors, combining long-term obligations to retirees with active global investing. At a glance Plan type: Defined-benefit pension…

Ontario Securities Commission (OSC) Overview The Ontario Securities Commission (OSC) is the primary securities regulator in the province of Ontario and the largest securities regulator in Canada. Established as a crown corporation, the OSC is accountable to the provincial government and is responsible for enforcing provincial securities and commodity futures laws. What the OSC Regulates…

Online-to-Offline (O2O) Commerce: Definition and Trends Online-to-offline (O2O) commerce is a business strategy that uses digital channels to attract customers and drive transactions in physical stores. It combines online marketing and discovery with brick-and-mortar fulfillment and service, treating online and offline channels as complementary parts of the customer journey rather than direct competitors. How O2O…

Online Shoplifting: What It Is, How It Works, and Types What is online shoplifting? Online shoplifting is the theft of goods or content from an internet-based merchant or distributor. It can take many forms, from abusing payment dispute processes to downloading copyrighted material without paying. Although the theft often happens without face-to-face contact, it is…

Online Banking Online banking lets you manage finances from a computer, smartphone, or tablet without visiting a branch. Most banks and credit unions offer web and mobile platforms that enable everyday tasks—checking balances, transferring funds, paying bills—and more advanced services depending on how robust the platform is. How online banking works Access your account through…

Understanding Onerous Contracts An onerous contract is an agreement whose unavoidable costs to fulfill exceed the economic benefits expected from it. When a contract becomes onerous, it creates a financial burden that companies must address in their financial statements under International Financial Reporting Standards (IFRS). How onerous contracts arise — examples Long-term property leases that…

OneCoin: How the $4 Billion Cryptocurrency Ponzi Worked and What Happened Overview OneCoin, launched in 2014 by Ruja Ignatova, presented itself as a new cryptocurrency but was a large-scale Ponzi scheme that raised roughly $4 billion between 2014 and 2016. It combined multi-level marketing (MLM) recruitment with the sale of educational packages and false claims…

One-Touch Option: Definition, How It Works, and Key Considerations What is a one-touch option? A one-touch option is an exotic, path-dependent derivative that pays a fixed amount if the underlying asset reaches (or “touches”) a predetermined price level at any time before expiration. If the touch never occurs, the buyer loses the premium paid to…

One-Time Item A one-time item is a gain, loss, or expense reported on the income statement that is nonrecurring and not part of a company’s ongoing operations. Because these items can distort a firm’s true operating performance, analysts and investors commonly exclude them when evaluating core business results. Where one-time items appear They may be…

One-Time Charge: Definition, How It Works, and How to Evaluate It What is a one-time charge? A one-time charge is a non-recurring expense or write-down recorded against a company’s earnings that management expects will not recur. It can be: * A cash charge (e.g., severance payments, settlement costs). * A non-cash charge (e.g., asset write-downs,…

One-Third Rule: What it Means and How It Works The one-third rule is a simple rule of thumb used in growth accounting to estimate how changes in capital per worker affect labor productivity. It says that roughly one-third of a percentage increase in capital per hour of labor translates into a percentage increase in labor…

One-Tailed Test A one-tailed test (directional test) is a statistical hypothesis test that evaluates whether a sample statistic is significantly greater than or significantly less than a population parameter, focusing on only one direction of interest. It concentrates the rejection region in one tail of the sampling distribution rather than splitting it between both tails….

One-Stop Shop: Definition, How It Works, History, Pros & Cons What is a one-stop shop? A one-stop shop is a business model in which a single company or location provides multiple, complementary products or services so customers can meet several needs in one place. Examples range from big-box retailers and supermarkets to financial institutions and…

One Percent Rule: A Quick Rental Property Screening Tool The 1% rule is a simple guideline real estate investors use to quickly evaluate whether a rental property’s monthly rent will roughly cover its mortgage payment. It’s a screening tool—not a substitute for full financial analysis. What it is The rule states that a property should…

China’s One-Child Policy Overview Introduced in 1979 and phased out between 2015–2016, China’s one-child policy was a nationwide family-planning program intended to curb rapid population growth. It combined incentives for compliance with penalties for violations and had major, long-lasting demographic, social, and economic consequences. Key takeaways Implemented from 1979; effectively ended in 2015 with gradual…

One-Cancels-the-Other (OCO) Order Overview A one-cancels-the-other (OCO) order links two conditional orders so that when one executes, the other is automatically canceled. Traders commonly pair a stop order with a limit order. OCO orders help manage risk and automate responses to price moves, especially in volatile markets. How OCO Orders Work You submit two orders…

One Belt One Road (OBOR) One Belt One Road (OBOR), also called the Belt and Road Initiative (BRI), is a large-scale Chinese infrastructure and economic program to improve connectivity and cooperation across Asia, Africa, and Europe. Launched in 2013, it aims to build transport, energy, and trade links that revive and expand routes between China…

One-Bank Holding Company A one-bank holding company is a corporate entity that owns a controlling interest in a single commercial bank. Unlike a bank, the holding company does not itself provide banking services; it exists to control, manage, and hold the bank as a subsidiary. What is a bank holding company? A bank holding company…

On-Us Item: Transactions Paid and Deposited at the Same Bank Key takeaways An on-us item is a check, draft, electronic debit, or transfer presented to the same bank that holds the payer’s account. Because the payer’s (drawing) account and the depositary account are at the same bank, the transaction can be settled internally without external…

On-the-Run Treasury Yield Curve: What It Is and How It Works Definition The on-the-run Treasury yield curve plots yields against maturities using the most recently issued U.S. Treasury securities (the “on‑the‑run” issues). It serves as a primary benchmark for pricing fixed‑income securities and for market participants who need a quick read on current Treasury yields….

Understanding On-the-Run Treasuries: Key Features and Trading Tips What are on-the-run Treasuries? On-the-run Treasuries are the most recently issued U.S. Treasury notes or bonds of a given maturity. Because they are the newest issues, they are the most actively traded and therefore the most liquid. Market participants often reference on-the-run securities when quoting Treasury yields…

On-Chain Governance On-chain governance is a mechanism for managing and implementing changes to a blockchain by encoding the proposal and voting process directly into the protocol. Stakeholders—such as token holders, validators, or delegated representatives—vote on proposals, and the results are recorded on-chain. The system aims to let the community decide the network’s direction without relying…

On-Balance Volume (OBV) What is OBV? On-Balance Volume (OBV) is a volume-based momentum indicator developed by Joseph Granville in 1963. It tracks cumulative trading volume and uses the direction of price changes to infer whether volume is flowing into (accumulation) or out of (distribution) a security. The central idea is that volume often precedes price:…

On Account: Definition, Journal Entries, and Examples Definition “On account” means a purchase or payment made on credit or a partial payment applied to an outstanding balance. It can describe: – A buyer acquiring goods or services on credit (purchase on account). – A payment made against an existing account balance without specifying a particular…