What Is an Orderly Market? An orderly market is any market in which supply and demand are reasonably equal. An orderly market is said to be in a state of equilibrium. This term can also refer to a site of exchange for goods, services, or financial securities that are traded in a fair, reliable, secure
What Is the Order Protection Rule? The Order Protection Rule is one of the four main provisions of the Regulation National Market System (NMS). The rule is meant to ensure that investors receive an execution price that is equivalent to what is being quoted on any other exchange where the security is traded. The rule eliminates
What Is an Ordinary Annuity? An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time. While the payments in an ordinary annuity can be made as frequently as every week, in practice they are generally made monthly, quarterly, semi-annually, or annually. The opposite
What Are Ordinary Dividends? Ordinary dividends are a share of a company’s profits passed on to the shareholders periodically. One of the primary advantages of owning stocks, also known as equities, is the regular payment of dividend income. Dividends are considered “ordinary” by default, although there are cases when a dividend may be classified as
What Is an Ordinary Loss? An ordinary loss is loss realized by a taxpayer when expenses exceed revenues in normal business operations. Ordinary losses are those losses incurred by a taxpayer which are not capital losses. An ordinary loss is fully deductible to offset income thereby reducing the tax owed by a taxpayer. Understanding Ordinary Loss Ordinary losses
What Are Ordinary Shares? Ordinary shares, also called common shares, are stocks sold on a public exchange. Each share of stock generally gives its owner the right to one vote at a company shareholders’ meeting. Unlike in the case of preferred shares, the owner of ordinary shares is not guaranteed a dividend. The vast majority
What Is Organic Growth? Organic growth is the growth a company achieves by increasing output and enhancing sales internally. This does not include profits or growth attributable to mergers and acquisitions but rather an increase in sales and expansion through the company’s own resources. Organic growth stands in contrast to inorganic growth, which is growth related
What Is Operating Netback? Operating netback is a non-generally accepted accounting principle (GAAP) financial measure commonly used in the oil and gas industry to determine how much profit companies generate from their ventures. It is calculated by subtracting all costs associated with getting the oil to market, including transportation, royalties, and production expenses, from revenues. O
What Is the Operating Ratio? The operating ratio shows the efficiency of a company’s management by comparing the total operating expense (OPEX) of a company to net sales. The operating ratio shows how efficient a company’s management is at keeping costs low while generating revenue or sales. The smaller the ratio, the more efficient the
What Is Operating Revenue? Operating revenue is the revenue that a company generates from its primary business activities. For example, a retailer produces its operating revenue through merchandise sales; a physician derives their operating revenue from the medical services that they provide. What constitutes operating revenue varies based on the business or the industry. Key
