Paper Trade

Paper trading is practicing buying and selling securities without using real money. Historically it meant recording hypothetical trades on paper; today most people use…

Paid in capital (PIC)

Why paid‑in capital matters – Shows how much investors have funded a company via equity versus what the company earned from operations (retained earnings).…

P Value

Key takeaways – A p‑value quantifies how compatible the observed data are with a specified null hypothesis: it is the probability of obtaining results…

owner financing

What is owner financing? – Owner financing (also called seller financing) is a purchase arrangement in which the seller of real estate lends all…

Overnight Trading

What is overnight trading? – Overnight trading refers to buying and selling financial instruments between an exchange’s official close and its next official open.…

Overfunded Pension Plan

Key takeaways – An overfunded pension plan holds more assets than the present value of its pension liabilities (funding ratio > 100%). – Surplus…

Over the Counter (OTC) Market

An over‑the‑counter (OTC) market is a decentralized trading environment in which two parties transact directly (often via a broker or market maker) without routing…

Outstanding Check

An outstanding check is a written check that the payee has not yet cashed or deposited (or that has been presented but is still…

Output Gap

Key takeaways – The output gap is the percentage difference between actual GDP and an estimate of potential GDP (the economy’s capacity output at…

Out-of-Pocket Expenses

Key Takeaways – “Out-of-pocket expenses” are costs an individual must pay directly; they may be later reimbursed (for work expenses) or not reimbursed (healthcare…