Glossary
Offer
The offer (or bid) made for the target company by the Newco offeror established by the private equity provider and the participating directors of the target company (those directors who are part of the management buyout team).
Offer document
The document by which the offeror makes the formal legal offer to target shareholders.
Offer period
The period from announcement of an offer or potential offer until the closing date for the offer or the date when the offer becomes or is declared unconditional as to acceptances (that is, the acceptance condition, which requires a certain percentage of shareholders to accept, has been satisfied) or the offer lapses.
Offeror
The Newco entity established to make the offer for the target company.
OMX
Stock exchange operator created in 2003 and which includes stock exchanges in Copenhagen (DK), Stockholm (SE), Helsinki (FI), Tallinn (EE), Riga (LV) and Vilnius (LT).
Open-end fund
A fund which sells as many shares as investors demand.Compare closed-end fund, mutual fund.
Opening price
The price at which a security trades at the beginning of a day or, in the case of an IPO, at the commencement of its first day of trading.
Option
A contractual right to purchase something (such as stock) at a future time or within a specified period at a specified price.
Option pool
The number of shares set aside to be issued to employees of a private company.
Ordinary shares (or common shares/stock)
In a public company, the stock which is traded between investors on various exchanges. Owners of ordinary shares are typically entitled to vote on the selection of directors and other important issues. They may also receive dividends on their holdings, but ordinary shares do not guarantee a return on the investment. If a company is liquidated, the owners of bonds and preferred stock are paid before the holders of ordinary shares.
OTC Bulletin Board
See Nasdaq Bulletin Board.
Overhang
Private equity funds still available for investment in the industry.
Over-the-counter (OTC)
A security which is not traded on an exchange, usually due to an inability to meet listing requirements. For such securities, broker/dealers negotiate directly with one another over computer networks and by phone.See Nasdaq Bulletin Board.
