Overdraft

• An overdraft is a short-term loan from your bank that lets a transaction go through when you don’t have enough money in your…

Overdraft Protection

Overdraft protection is an optional bank service that prevents transactions (checks, ATM withdrawals, debit-card purchases, recurring payments) from being rejected when your account balance…

Over Collateralization

Over‑collateralization is providing collateral whose market value exceeds the amount of the loan or security it supports. The excess collateral acts as a cushion…

Overcast

An overcast is a forecasting error that occurs when a projected value is higher than the value actually realized. It can apply to sales,…

Overcapitalization

Overcapitalization occurs when a company’s capital (the sum of its debt and equity) exceeds the value of the assets it has to generate returns.…

Overbought

• Overbought describes a security whose price has risen rapidly and may have moved above a level justified by fundamentals or recent momentum—increasing the…

Overallotment

An overallotment option—commonly called a greenshoe—is a provision in an underwriting agreement that permits the underwriters of an initial public offering (IPO) or a…

Overall Turnover

Overall turnover is a common term—especially outside North America—for a company’s total revenues or gross sales over a reporting period. When a company says…

Overall Liquidity Ratio

• The overall liquidity ratio (OLR) measures a company’s capacity to cover its liabilities using its assets on hand, after accounting for conditional reserves.…

Over Selling

Over‑selling occurs when a salesperson continues to press a sale after a customer has already decided to buy, or when a salesperson aggressively tries…