What Are Shares Outstanding? Shares outstanding refer to a company’s stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders. Outstanding shares are shown on a company’s balance sheet under the heading “Capital Stock.” The number of outstanding shares is used in
What Is an Out Trade? An out trade is a trade that cannot be placed because it was received by an exchange containing conflicting information. The associated clearinghouse cannot settle the trade because the data submitted by parties on both sides of the transaction is inconsistent or contradictory. Key Takeaways An out trade is a trade that can’t
What Is an Outward Direct Investment (ODI)? An outward direct investment (ODI) is a business strategy in which a domestic firm expands its operations to a foreign country. ODI can take many different forms depending on the company. For example, some companies will make a green field investment, which is when a parent company creates
What Was the Over-55 Home Sale Exemption? The over-55 home sale exemption was a tax law that provided homeowners over age 55 with a one-time capital gains exclusion. Individuals who met the requirements could exclude up to $125,000 of capital gains on the sale of their personal residences. The over-55 home sale exemption has not
What is the Overall Liquidity Ratio? The overall liquidity ratio is the measurement of a company’s capacity to pay its outstanding liabilities with its assets on hand. The overall liquidity ratio is calculated by dividing total assets by the difference between its total liabilities and conditional reserves. This ratio is used in the insurance industry
What Is an Overallotment? An overallotment is an option commonly available to underwriters that allows the sale of additional shares that a company plans to issue in an initial public offering or secondary/follow-on offering. An overallotment option allows underwriters to issue as many as 15% more shares than originally planned. The option can be exercised
What Is Overall Turnover? Overall turnover is a synonym for a company’s total revenues. It is a term that is most commonly used in Europe and Asia. For example, a European or Asian company’s press release that announces overall turnover increased 20% last year simply means that gross revenues or total sales increased by that
What is Overbought? Overbought is a term used when a security is believed to be trading at a level above its intrinsic or fair value. Overbought generally describes recent or short-term movement in the price of the security, and reflects an expectation that the market will correct the price in the near future. This belief
What Is Overcapitalization? The term overcapitalization refers to a situation wherein the value of a company’s capital is worth more than its total assets. Put simply, there is more debt and equity compared to the value of its assets. When a company is overcapitalized, its market value is less than its total capitalized value or
What Is an Overcast? An overcast is a type of forecasting error that occurs when an estimated metric, such as future cash flows, performance levels, or production, is forecast too high. Overcasting thus is when the estimated value turns out to be above the realized or actual value. Overcasting can be contrasted with undercasting, which
