Options Contract

Title: What Is an Options Contract — A Practical Guide for Traders and Investors Key takeaways – An options contract gives the buyer the…

Option Writer

An option writer (also called a grantor or seller) is the party who sells an option contract and receives the option premium up front.…

Optimal Capital Structure

Optimal capital structure is the mix of debt and equity financing that minimizes a company’s weighted average cost of capital (WACC) and, by doing…

Opportunity Cost

Overview Opportunity cost is the gain you forgo when you choose one use of limited resources (money, time, capital, labor) instead of the next-best…

Operational Risk

Key takeaways – Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, systems, or from external events. (Source:…

operating ratio

The operating ratio is a simple efficiency metric that compares a company’s total operating costs to its net sales. It shows how much of…

operating margin

Operating margin (also called return on sales, ROS) measures how much profit a company makes from its core operations for every dollar of sales…

Operating Income

Overview / Key Takeaways – Operating income (also called operating profit or operating earnings) measures the profit a company generates from its core business…

Operating Costs

Key takeaways – Operating costs are the everyday expenses required to run a business; they combine cost of goods sold (COGS) and operating (overhead)…

Operating Cash Flow (OCF)

Introduction Operating cash flow (OCF) measures the cash a company produces (or consumes) from its core business operations over a reporting period. Unlike net…