Secured Loans
When a security is expected to appreciate at a rate faster than the overall
market.
Overreaching
Used in the context of general equities. Creating artificial volume in a stock
through activity not generated by normal/natural buyers and sellers in the market.
Overreaction hypothesis
The supposition that investors overreact to unanticipated news, resulting in
exaggerated movement in stock prices followed by corrections.
Overshooting
The tendency of a pool of M.B.S.s to reflect an especially high rate of
prepayments the first time it crosses the threshold for refinancing, especially if
two or more years have passed since the date of issue without the weighted
average coupon of the pool having crossed the refinancing threshold.
Oversold
Used in the context of general equities. Technically too low in price, and hence a
technical correction is expected. Antithesis of overbought.
Oversubscribed issue
Investors are not able to buy all of the shares or bonds they want, so
underwriters must allocate the shares or bonds among investors. This occurs
when a new issue is underpriced or in great demand because of growth
prospects.
Oversubscription privilege
In a rights issue, arrangement by which shareholders are given the right to apply
for any shares that are not taken up.
Over-the-counter (OTC)
A decentralized market (as opposed to an exchange market) where
geographically dispersed dealers are linked together by telephones and
computer screens. The market is for securities not listed on a stock or bond
exchange. The N.A.S.D.A.Q. market is an O.T.C. market for U.S. stocks.
Antithesis of listed.
