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FINANCIAL
GLOSSARY : O
Occupational
pension scheme
A scheme run by
the employer for whom you work, to build up a retirement pension. The
maximum pension under this kind of scheme is two-thirds of final salary.
Offer price
The price at which
you buy shares or units.
Open-ended
Investment fund
which has no set limit either in time or money.
Open-Ended
Investment Company (Oeic)
An investment company
fund set to replace unit trusts. The main differences are that they
quote a single price rather than a bid/offer spread and have a company
structure like investment trusts.
Operating
profit
The profit that
a company makes before the deduction of interest and tax.
Option
A contract which
allows you to speculate about future share (or assets) price movements
by giving you the option to buy or sell the shares at a set price on
or before a set date. It is an option and not an obligation to buy or
sell, therefore if you don't exercise the right within the agreed period,
the option lapses. The right to buy is called a 'call option' and the
right to sell is called a 'put' option.
These are the most
common and largest type of shares issued by a company.
Orphan assets
These are the surplus
assets which a life insurance company has once it has met all its liabilities
to its policyholders and shareholders.
