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Official Journal (OJ)

The Official Journal of the European Union is a directory of official record. Legal acts published in the Official Journal are binding.

Open-ended fund

An open-ended fund is a fund where the number of shares or units in existence can increase or decrease. The fund manager creates units for new investors and cancels units for those selling out of the fund. The term ‘open ended’ is used because the number of units that can be created is theoretically unlimited.

Open transaction

A trade with no fixed maturity date.

Over-the-counter (OTC)

Over-the-counter or off-exchange trading is done directly between two parties, without the supervision of an exchange. It is contrasted with exchange trading, which occurs via exchanges.

Over collateralisation

With overcollateralisation, excess collateral is used to enhance credit in order to get a better debt rating from a credit rating agency. An issuer backs a loan with assets or collateral which has value in excess of the loan, thereby, limiting credit risk for the creditor and enhancing the credit rating assigned to the loan.

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