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.
