Month: January 2020

Accelerated Depreciation

Oversupply

What is excess supply? The excess supply is an excessive quantity of a product. Excess supply occurs when demand falls short of supply, resulting in a surplus. In other words, an oversupply is when there are more products to sell than people are willing to buy. There are many reasons why over-supply can occur. There …

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Asset Financing

Oversubscription Privilege

What is an oversubscription privilege An oversubscription privilege is granted to shareholders of a company when an offer of rights or warrants is issued. The lien allows shareholders to purchase the remaining shares after other shareholders have had the opportunity to purchase them. DISTRIBUTE the oversubscription privilege The oversubscription privileges apply to existing shareholders. In …

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408(k) Plan

Oversubscribed

What is oversubscribed? Oversubscription is the term for which the demand for shares of an IPO exceeds the number of shares issued. When a new issue of securities is oversubscribed, the underwriters or others offering the security may adjust the price or offer more securities to reflect higher than expected demand. Understanding oversubscribed IPOs An …

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2011 U.S. Debt Ceiling Crisis

Overshooting

What is overshoot? The overshoot, also known as the overshoot model, or the exchange rate overshoot hypothesis, is a way to think about and explain the high levels of exchange rate volatility. Understanding the overshoot The overshoot was introduced by German economist Rudiger Dornbusch, the renowned economist specializing in international economics, including monetary policy, macroeconomic …

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Flexible Manufacturing System (FMS)

Overseas Private Investment Corporation (OPIC)

What is the Overseas Private Investment Corporation? An agency of the United States government that helps companies looking to invest abroad. Operated from Washington, DC, the Overseas Private Investment Corporation (OPIC) helps companies investing abroad analyze and manage risks and tries to promote development in emerging markets in addition to supporting domestic foreign policies . …

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Arithmetic Mean

Overreaction

What is an overreaction in finance and investment? The overreaction is an emotional response to new information. In finance and investment, it is an emotional response to security like an action or other investment, which is driven either by greed or fear. Investors, overreacting to the news, cause the security to be overbought or oversold …

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Overnight Rate

What is the night rate The overnight rate is the interest rate at which a deposit-taking institution (usually banks) lends or borrows funds from another deposit-taking institution in the overnight market. In many countries, the overnight rate is the interest rate that the central bank sets to target monetary policy. In most cases, the overnight …

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