Guide to Analysing Companies

NYBOT
See new york board of trade.
NYSE
See new york stock exchange.
NYSE
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Oo
OBU
See offshore banking unit.
Odd lot
A transaction in fewer shares than is normally permitted on a
market. The minimum permitted amount is usually 100 shares.
It costs more to trade in odd lots than in larger amounts because
of the inconvenience for brokers who charge a commission
for each transaction. The difference in price is called the odd-lot
differential.
Off balance sheet
Any transaction by a financial institution that does not have to
appear on its balance sheet, for example, a fiduciary
deposit. leasing is usually off-balance-sheet business for the
lessee, but not for the lessor. Such transactions are particularly
attractive for banks, which have to pay an additional price (in
the form of extra reserves) for every extra cent that appears
on the balance sheet. In recent years, off-balance-sheet financ-
ing has also been used to great effect, and at great cost to share-
holders, by companies such as Enron, an energy-trading firm
that went spectacularly bust in 2001. By piling up debts that
did not appear on its balance sheet, Enron was able to hide its
true financial position from regulators and its shareholders.
Offer for sale
The proposed sale under UK law of a parcel of securities at a
quoted price to the general public. The sale is usually organised
by a group of underwriters who receive a fee for guaran-
teeing the minimum amount under the sale to the vendor and
for taking the risk that the offer might flop if the market goes
against it.
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