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OAS
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See Old Age Security
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OECD
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See Organization for Economic Co-operation and Development.
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OFF BALANCE SHEET FINANCING
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Financing from sources other than debt and equity offerings, such as joint ventures, R&D partnerships and operating leases, which are not visible on the balance sheet, but should appear in footnotes.
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OFFER
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The lowest price at which an individual is willing to sell; as opposed to bid, which is the highest price at which one is willing to buy. Sometimes called the asking price.
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OFFERING PRICE
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The price that an investor pays in order to purchase shares in an investment fund. The offering price normally includes the charge or load that is deducted when the purchase is made.
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OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS (OSFI)
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A federal agency established in 1987 under the Financial Institutions and Deposit Insurance System Amendment Act to oversee all federally regulated financial institutions. These include all banks, all federally incorporated or registered insurance companies, trust, and loan companies, co-operative credit associations, and fraternal benefit societies. OSFI is also in charge of supervising all federally regulated pension plans.
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OLD AGE SECURITY (OAS)
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A government pension plan that is payable at age 65 to all Canadian citizens and legal residents.
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OPEN-END MUTUAL FUND
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An Open End mutual fund constantly issues and redeems units, so the amount of units outstanding fluctuates from day to day. Most mutual funds are open-ended.
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OPEN ORDER
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An order to buy or sell a security at a specified price that is valid until either executed or cancelled.
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OPERATING INCOME
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Measurement of the earning power of a company from continuing operations, equal to the earnings before any deductions of interest payments and income taxes. It is also called operating profit or EBIT (earnings before interest and taxes).
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OPERATING LEASE
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A lease for which the lessee purchases the property for only a small portion of its useful life. An operating lease is commonly used to purchase equipment on a short-term basis. Any lease that is not a capital lease can be considered to be an operating lease.
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OPTION
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The right to purchase or sell a specific amount of a security at a specific price within a specified period of time.
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ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD)
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An organization based in Paris with a membership totaling 29 industrialized countries, which is responsible for co-operation on a broad range of economic, trade, scientific and educational issues. Canada has been a founding member since the organization was instituted in 1961.
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OSFI
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See Office of the Superintendent of Financial Institutions.
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OTC
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See Over-the-Counter
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OVER-CONTRIBUTION
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An amount over and above the annual limit made to an RRSP. A contribution over $2,000 results in a penalty at a rate of 1% per month.
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OVER-CONTRIBUTION ALLOWANCE
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An amount of up to $2,000 of excess contributions are permitted into a registered retirement savings plan (RRSP) per annum without incurring a penalty tax of 1% a month.
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OVERNIGHT FINANCING RATE
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The overnight financing rate is the interest rate at which financial market participants borrow and lend funds for a single business day. This rate is set by the Bank of Canada through its daily operations. The Bank of Canada modifies the level of settlement balances in the financial system in order to influence the overnight interest rate. For example, if a bank requires funds in order to cover the transactions at its branches during the day, it can borrow from the Bank of Canada at the bank rate, or on the overnight financing market from another banking entity that has excess funds.
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OVER-THE-COUNTER (OTC)
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A security that is not traded on a recognized exchange, which is usually due to an inability to meet certain exchange listing requirements. For these types of securities, brokers &/or dealers trade directly with one another and their activities are monitored. Also called unlisted stocks.
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OWNERSHIP RESTRICTION
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Limitation of the ownership by certain buyers or of certain assets. An example would be limits on the number or percentage of shares an individual investor or entity may own.
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