What Is Off-Balance Sheet Financing (OBSF)? The term off-balance sheet (OBSF) financing refers to an accounting practice that involves recording corporate assets or liabilities in such a way that doesn’t make them appear on a company’s balance sheet. The practice is used to keep debt-to-equity (D/E) and leverage ratios low, especially if the inclusion of a large expenditure would break
What Is Obsolete Inventory? Obsolete inventory is a term that refers to inventory that is at the end of its product life cycle. This inventory has not been sold or used for a long period of time and is not expected to be sold in the future. This type of inventory has to be written-down or
What Is the Options Clearing Corporation (OCC)? The Options Clearing Corporation (OCC) is an organization that acts as both the issuer and guarantor for options and futures contracts. The largest equity derivatives clearing organization in the world, it operates under the jurisdiction of the Commodities Futures Trading Commission (CFTC) and the U.S. Securities and Exchange
What Is the Occupancy Rate? Occupancy rate is the ratio of rented or used space to the total amount of available space. Analysts use occupancy rates when discussing senior housing, hospitals, bed-and-breakfasts, hotels, and rental units, among other categories. In a call center, occupancy rate refers to the amount of time agents spend on calls compared
What is a One-Cancels-the-Other Order (OCO) A one-cancels-the-other (OCO) order is a pair of conditional orders stipulating that if one order executes, then the other order is automatically canceled. An OCO order often combines a stop order with a limit order on an automated trading platform. When either the stop or limit price is reached
What Is the October Effect? The October effect is a perceived market anomaly that stocks tend to decline during the month of October. The October effect is considered to be more of a psychological expectation than an actual phenomenon, as most statistics go against the theory. Some investors may be nervous during October because some
What is an Odd Date? The odd date refers to the maturity date for a futures contract that does not fall exactly on a fixed term such as three months, but instead falls a few days earlier or later. This can be agreed upon in advance or result from the timing of a holiday such
What Is an Odd-Days Interest? Odd-days interest is the term used to describe interest due on a mortgage to cover an initial, partial month payment before regularly scheduled payments begin. The situation arises because most mortgages have payments scheduled to be due on the first of every month. However, mortgage closings may occur on any weekday during
What Is an Odd Lotter? An odd lotter is an individual or retail investor who buys securities (usually stocks) in odd lots or amounts that are not multiples of 100. An odd lotter differs from larger investors, who typically buy in round lots or multiples of 100. Key Takeaways Odd lotters are individual investors who
What Is Novation? Novation is the replacement of one of the parties in an agreement between two parties, with the consent of all three parties involved. To novate is to replace an old obligation with a new one. For example, a supplier who wants to relinquish a business customer might find another source for the
