Consignment is a business arrangement in which goods are left in the possession of an authorized third party to sell. The owner of the goods (consignor) retains ownership until the goods are sold.
The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve System that determines the direction of monetary policy specifically by directing open market operations.
Financial instruments are monetary contracts between parties. They can be created, traded, modified, and settled. They may be cash (currency), a contractual right to deliver or receive cash (as expressed by a bond), or another type of instrument that conveys ownership (equity).
Foreign companies are corporations or businesses that are registered, operate, or have authorization to conduct commercial activities in a country other than their country of origin. These entities are important players in the global economy and international trade.
A geographic segment is defined as the origin or area from which products or services of an organization are supplied to a third party or another segment within the same organization. This is crucial in segmental reporting to understand performance disparities across different regions.
A journal entry is a detailed record of a business transaction in accounting, consisting of debits and credits and supporting a specific accounting period.
Microsoft Office is a suite of application software designed for various office and business tasks. It typically includes Word, Excel, PowerPoint, Outlook, OneNote, and Access in its Professional Edition.
Economic policies championed by President Barack Obama to achieve economic recovery and effect reforms, calling for increased involvement by the government in the private sector in areas such as health care, banking, automobiles, college education finance, consumer protection, and environmental protection.
Object Linking and Embedding (OLE) is a technology developed by Microsoft that allows embedding and linking to documents and other objects. An example is inserting a drawing created in CorelDRAW into a Microsoft Word document. The OLE object can be embedded as a static copy or linked to reflect changes made to the original drawing. Double-clicking on the drawing in Word opens a CorelDRAW window for editing within Word.
Object Linking and Embedding (OLE) is a technology developed by Microsoft that allows embedding and linking to documents and other objects. It is used to create compound documents, where data from different applications can be included in a single file and edited within the context of the original application.
Object-Oriented Programming (OOP) is a programming paradigm that uses 'objects' to design applications and computer programs. It utilizes several key concepts such as classes, inheritance, encapsulation, and polymorphism to create reusable and modular code.
An objective is a clearly defined and articulated goal or target, free from personal bias or opinion, and representing the ultimate aim of an individual or group's efforts and strategy.
An objective function in linear programming is a mathematical statement that defines the goal of a decision-making problem, often aiming to maximize contribution or minimize costs based on the relationship between production factors.
Objective Value is a term used to describe the value of an asset as determined by market forces, rather than subjective measures like personal opinions or intrinsic valuations.
Understanding the primary goals that financial statements aim to achieve is crucial for determining the scope of information they should provide and the manner in which they should be presented.
Objectivity in accounting aims to minimize subjective actions by preparers of accounts to ensure comparisons of financial statements across different companies are based on consistent principles.
The Objects Clause was a part of a company's articles of association outlining the purposes for which the company was established, but this requirement was removed by the Companies Act 2006.
An obligation is a commitment undertaken by a person or entity to adhere to the conditions defined in a contract or to repay a specified debt.
An obligation bond is a type of mortgage bond in which the face value is greater than the value of the underlying property. The difference compensates the lender for costs exceeding the mortgage value.
An obligee is a person or entity in whose favor a contractual, legal, or fiscal obligation is established. This party is entitled to receive specific performance or payment as per the conditions outlined in the obligation.
An obligor is a person or entity that has a legal or contractual obligation to another party. This term is often used in legal and financial contexts, particularly in relation to bonds, loans, and other forms of debt.
An observation test involves physical and visual verification by inspection of financial statement items or activities. The external auditor observes and evaluates how company employees conduct various accounting-related tasks such as documenting the existence and valuation of assets, safeguarding assets, approving expense accounts, and counting inventory.
Obsolescence refers to the decline in the value of an asset due to its age or reduced usefulness caused by technological advancements or market changes.
Occupancy level is a crucial metric in real estate and hospitality industries, indicating the percentage of currently rented units in a building, city, neighborhood, or complex.
Understanding the concepts of occupancy and occupants is essential for various fields, including real estate, property management, and law.
An occupation refers to a trade, job, business, or vocation of an individual, serving as the principal means by which one earns a livelihood.
Occupational analysis refers to the systematic process of describing an occupation in terms of various characteristics including purposes, task characteristics, task duties, necessary skills, and abilities.
An occupational group is a classification that organizes various job roles and responsibilities within the same broad occupational category, such as marketing, accounting, and management.
An occupational hazard is a condition surrounding a work environment that increases the probability of death, disability, or illness to a worker. Understanding occupational hazards is crucial when writing workers' compensation insurance or determining underwriting classifications for life or health insurance.
An occupational pension scheme, also known as superannuation or workplace pension, is a pension plan designed for employees within a specific trade, profession, or company, providing retirement benefits through either insured or self-administered schemes.
The Occupational Safety and Health Administration (OSHA) is the federal office responsible for administering and enforcing the Occupational Safety and Health Act of 1970, which regulates workplace safety and health standards to protect employees.
The Occupational Safety and Health Administration (OSHA) is a regulatory agency of the U.S. Department of Labor responsible for ensuring safe and healthful working conditions by setting and enforcing standards and by providing training, outreach, education, and assistance.
State or local taxes applied to various trades or businesses, encompassing permits, licenses, or fees associated with practicing specific professions such as accounting, law, and medicine.
Ocean Marine Protection and Indemnity Insurance provides coverage for bodily injury and property damage liability that are typically excluded under standard ocean marine policies. This insurance extends protections to wharfs, docks, and harbors, and covers costs such as removing wrecks, disinfecting, and quarantining ships.
OCONUS stands for 'Outside Contiguous United States' and refers to locations outside the contiguous 48 states and the District of Columbia. Federal per diem rates for lodging, meals, and incidental expenses for travel OCONUS are published under the Federal Travel Regulations and updated periodically.
An odd lot in securities trading refers to a block of stocks or bonds that is fewer than 100 shares. This is considered a non-standard trading size and can sometimes incur different types of handling fees or treatment by brokers.
Odd-value pricing involves setting retail prices just below even dollar amounts, such as $5.99, $0.39, and $98.99, aiming to create a psychological impression of a better deal.
OEM refers to companies that produce parts and equipment that may be marketed by another manufacturer. The term also describes software or supplies initially bundled with computer peripherals.
The OEX, pronounced as three letters, is Wall Street shorthand for the Standard & Poor's 100 stock index, composed of stocks for which options are traded on the Chicago Board Options Exchange (CBOE).
The term 'of record' refers to the official recording of documents such as deeds or mortgages with the appropriate entity, as well as testimony recorded as the official transcript of a legal case. The 'attorney of record' is the officially designated lawyer for a party upon whom legal papers may be served.
Off Peak refers to periods of minimum usage, often utilized by service providers as a basis for offering reduced usage charges. This concept is commonly applied in industries such as telecommunications, utilities, and transportation.
Off the balance sheet (OBS) refers to financial transactions where the property involved does not appear on the company’s balance sheet. This technique is often used to keep debt-to-equity ratios lower and manage financial reporting more favorably.
Transactions that are concealed from formal accounting records to avoid taxation or government regulation, often referred to as 'off the books' transactions, can occur in the form of cash payments or barter trades.
Off time refers to a period during which a machine, computer, or other equipment is not in service. This can include when it is not scheduled for use, undergoing maintenance, or requiring alterations or repairs.
Off-balance-sheet (OBS) refers to assets or liabilities that do not appear on a company's balance sheet but potentially have a significant impact on the company's financial health.
Denoting assets or liabilities that do not appear on the balance sheet of a company. Various off-balance-sheet arrangements have been entered into by companies wishing to avoid full disclosure of their assets and liabilities through complex legal agreements, joint ventures, specially created subsidiaries, and structured finance arrangements.
Off-balance-sheet financing refers to financial arrangements that do not appear on a company's balance sheet, thus not affecting its borrowing capacity as measured by financial ratios. It is commonly seen in operating leases rather than capital leases. GAAP requires disclosure of such financing in financial statements regarding credit, market, and liquidity risk.
Off-budget items are federal programs that are not counted toward budget limits due to current law provisions. These programs are typically self-funding, such as Social Security and the United States Postal Service. Additionally, supplemental appropriations for emergencies are considered off-budget.
Off-price stores are retail stores that offer merchandise at prices lower than traditional retail stores. These stores acquire out-of-season products and distressed merchandise from other retailers and manufacturers.
The off-sale date refers to the specific date when newsstand returns are tabulated and reported back to the wholesaler or distributor, marking the end of a publication's sales period on the newsstand.
Off-Site Costs refer to expenditures related to construction that are incurred away from the actual construction site. These costs are commonly associated with infrastructure improvements essential to support the construction project, such as extending roads, sewers, and water lines.
An offer is a clear proposal to sell or buy goods or services at a specified price, creating a legally binding contract upon acceptance.
Learn about 'Offer and Acceptance', crucial concepts in contract law that form the basis of legally binding agreements.
Learn about the 'Offer by Prospectus', a method of offering new shares or debentures to the public, including requirements, examples, FAQs, related terms, and further resources.
An invitation to the general public to purchase the stock of a company through an intermediary, such as an issuing house or merchant bank. It is one of the most frequently used means of corporate flotation.
The price at which a security is offered for sale by a market maker, and the price at which an institution sells units in a unit trust.
An offeree is a person or party that receives an offer from another individual or entity. The offeree has the authority to accept, reject or counter the offer.
An offerer is the party who presents an offer in a contractual agreement and has the ability to rescind the offer any time before it is accepted.
An offering circular is an essential document used in securities offerings to provide detailed information about the investment opportunity, its terms, and the issuer. It serves a similar purpose to a prospectus but is typically used for different types of offerings.
The offering date is the specific date on which a distribution of stocks or bonds becomes available for sale to the public. It marks the first opportunity for investors to purchase the securities being offered by a company.
The offering price is the price per share at which new or secondary distribution of securities is offered for sale to the public. It is also commonly referred to as the public offering price.
The Offeror is a party who makes an offer to enter into a contractual agreement with another party (the offeree) in some legal contexts. It is an essential aspect of contract law, advertising, and various business transactions.
A structure used primarily for the conduct of business, such as administration, clerical services, and consultation with clients and associates. Such buildings can be large or small, and may house one or more business concerns.
The Office for Budget Responsibility (OBR) is the independent economic forecasting watchdog established by HM Treasury in May 2010 to provide economic data and analysis for the UK government.
The Office for National Statistics (ONS) is the UK's independent statistical unit responsible for collecting and publishing economic and population statistics. Formed by merging the Central Statistical Office and the Office of Population Censuses and Surveys in 1996, it plays a crucial role in informing government policies and decisions.
Office management involves organizing and administering activities that occur in a day-to-day business office environment. An office manager is responsible for handling these administrative responsibilities.
The Office of Fair Trading (OFT) was a UK government department established in 1973 to enforce competition law and consumer protection regulations. It was abolished in 2014, and many of its functions were transferred to the Competition and Markets Authority (CMA).
The Office of Government Commerce (OGC) was an office of HM Treasury responsible for improving the efficiency and effectiveness of government departments and other public sector organizations by delivering best value for money. OGC issued standards on best practices in procurement, project management, and service management, and measured performance against these standards.
The Office of Government Commerce (OGC) was a UK government department established to improve government procurement processes, enhance project management, and deliver efficiency savings across the public sector.
A division of the Department of Housing and Urban Development (HUD) that oversees the sale of building lots or recreational lots across state borders to protect consumers from fraud and provide transparency.
The Office of Management and Budget (OMB) at the federal level is an agency within the Office of the President responsible for preparing and presenting the President's budget to Congress, developing fiscal programs in cooperation with the Council of Economic Advisers and the Treasury Department, reviewing administrative policies and performance of government agencies, and advising the President on legislative matters.
A planned development designed especially for office buildings and supportive facilities, catering to specific tenant requirements such as research parks or medical services parks.
Office suite software packages are essential tools in modern business environments, offering a range of applications designed to facilitate office-related tasks. These software suites typically include applications for word processing, spreadsheets, presentations, email management, and more.
The term 'Officers of a Company' typically refers to the individuals who hold significant managerial or administrative positions within an organization, including Directors and the Company Secretary. These officers play crucial roles in the governance and operational oversight of the company.
The official exchange rate of a country's currency as determined by that country's government.
The Official List refers to two primary components within the London Stock Exchange framework: a comprehensive list of all traded securities and a daily record of transactions, dividends, rights issues, prices, and other relevant data.
An Official Receiver (OR) is a person appointed by the Secretary of State for Business, Innovation and Skills to act as a receiver in bankruptcy and winding-up cases. Official receivers are officers of the court, usually acting as liquidators in company windups.
An Official Receiver (OR) is an officer of the court, appointed to manage the estates of insolvent companies or bankrupt individuals. They are responsible for administering the insolvency processes, including the realization and distribution of assets.
An in-depth exploration of official reserves which encompass deposits of gold, currency, and Special Drawing Rights (SDRs) held at the International Monetary Fund (IMF) by member countries.
The term 'offline' typically refers to a state where a device, application, or user is not connected to a network or the Internet. This can pertain to printers lacking active connections or users who download content to access and work on it without an active Internet connection.
In various contexts such as accounting, banking, printing, and securities, the term 'offset' refers to actions or functions intended to counterbalance or neutralize other actions or amounts. It is used differently across diverse fields, reflecting its versatile nature.
An offset account reduces the gross amount of another account to derive a net balance, such as a fixed asset account that is offset by a depreciation account.
An offshore company is a business entity not registered in the same country as that of its funding residents or it's an entity established in a foreign country, often a tax haven, for capitalizing on specific tax laws and exchange control regulations.
An offshore exchange rate is the market price of a regulated currency outside the legal jurisdiction of the regulating government. It operates similarly to a legal black market rate.
Centres that provide advantageous deposit and lending rates to non-residents due to low taxation, liberal exchange controls, and low reserve requirements for banks. These centres often serve as tax havens, offering economic appeal while reducing customers' tax liabilities legally.
The term 'offshore' refers to financial organizations with headquarters outside their primary country of operation or to oil and gas drilling ventures in the sea. Offshore activities are significant in both finance and energy sectors.
The OFHEO Price Index, also known as the FHFA House Price Index, is a home price index compiled by the Office of Federal Housing Finance Agency, based on data from loans held by government-sponsored enterprises (GSEs).
An Oil and Gas Lease is an agreement that grants the right to explore, extract, and sometimes market oil, gas, and other minerals from the land. These leases typically involve payments to the landowner in the form of bonuses, royalties, or rental fees.
A partnership consisting of one or more Limited (Special) Partners and one or more General Partners that is structured to find, extract, and market commercial quantities of oil and natural gas.
The term 'Oil Patch' refers to states in the United States that produce and refine significant amounts of oil and natural gas. Key states include Texas, Oklahoma, Louisiana, California, and Alaska. Economists often refer to Oil Patch states when assessing the impact of oil price fluctuations on the regional economy.
An empirical relationship between unemployment and gross domestic product (GDP), developed by economist Arthur Okun, which states that for every 1% increase in unemployment, there is a corresponding 2% decrease in the national GDP.
An oligopoly is a market structure characterized by a small number of large firms dominating the market. This structure lies between perfect competition and monopoly and encompasses industries like automobiles, airlines, and telecommunications.
An oligopsony is a market structure where a small number of large buyers exert a significant control over the purchase of products from numerous sellers. This imbalance of power typically impacts pricing and bargaining dynamics.
An ombudsman historically serves as an appointed representative for citizens’ complaints and queries about governmental activities. In modern usage, it can refer to any official tasked with addressing external or internal complaints within an organization, including government agencies.
An omitted dividend refers to a dividend that was scheduled to be declared by a corporation but was not voted for the time being by the board of directors. This situation often arises when a company faces financial difficulty and decides it is more important to conserve cash than to pay a dividend to shareholders.
OMX is a company that owns and operates several stock exchanges in Scandinavia, the Baltic States, and Armenia. It also markets advanced electronic trading systems for derivatives products used worldwide. OMX was acquired by NASDAQ in 2008.
This term refers to a partial payment of an obligation or an arrangement of credit terms between a seller and a buyer, where payment is expected at a later date and is not documented by a promissory note.
The term 'On Demand' signifies an obligation that must be fulfilled upon request, often used in financial settings such as notes payable and demand notes.
The term 'On Margin' refers to the act of purchasing securities by paying only a fraction of their price and borrowing the rest from a broker or a financial institution. This practice allows investors to buy more securities than they could with their available funds, using leverage to amplify potential gains or losses.
On order refers to goods or services that have been requested through a purchase order but have not yet been received or paid for.
