Glossary of Terms

  • OEICs (Open Ended Investment Companies)

    Also known as ICVCs.
  • Offer Price

    This is the price at which you can buy. Your broker will always quote you a two-way price which includes the offer price (the price you can buy at) and the bid price (the price you can sell at).
  • Official List

    This is the main market of the London Stock Exchange. To become listed, companies have to apply to the UK Listing Authority, which is operated by the FSA.
  • One Cancels the Other Order (OCO)

    An order that states that if one part of the order is filled then the other part of the order is cancelled. For example, an investor can place a stop-loss order and a limit order on one stock as a one cancels other order. If the price of the stock declines then the limit order is cancelled and the stop order is executed in order to minimize losses. If the price of the stock increases then the stop order is cancelled and the limit order is executed.

  • Open Offer

    This is an offer to existing shareholders, giving them the option to subscribe for further shares, pro-rata to their holding, usually at a discount to the current market price.
  • Options

    These instuments confer the right (but not the obligation) to buy or sell securities at a fixed price within a specified period.
  • Order book security

    A security that is admitted to trading on the order book.
  • Order book

    An automatic execution facility operated by the Exchange. Order books facilitate the trading of order book securities.
  • Order

    An offer to buy or sell a tradable instrument. An order can take a multitude of varities - at market, limit, fill or kill etc.
  • Ordinary Shares

    Ordinary shares allow the owner to vote at company meetings. Ordinary Shares carry no guarantees, and reflect the success (or failure) of the company.
  • Over the counter (OTC) contracts

    OTC contracts are off-exchange contracts.