Offering Period

Offering periods are defined in a Employee Stock Purchasing Plan (ESPP). During the offering period, payroll deductions are accumulated to purchase shares on your behalf.

Opportunity Cost

Opportunity costs represent the potential benefits that an individual, investor, or business forgoes when choosing one alternative over another.


An Option is a contract that gives the buyer the right, but not the obligation, to buy or sell the underlying asset by a certain date (expiration date) at a specified price.

Options Pool

An option pool refers to an allocation of company equity that has been reserved for early investors or employees of a start-up company.

Origination Fee

Fees paid to a lender to process a loan application. 


Out of Pocket Costs

Out-of-pocket costs refers to expenses incurred by employees that require a cash payment. The employer typically reimburses employees for these costs through an expense reporting system. Examples of out-of-pocket-costs include the cost of a business lunch with a client or the purchase of gasoline or tolls while engaged in company business.

Overdraft Facility

Overdraft facilities are agreements drawn between a bank and an account holder that allows the  entity to take out or use more money than what they have in their account. These overdraft facilities work similarly to an approved loan since the account holder only has to pay interest on the amount owed and only for the time it was borrowed.

Overdraft Stake (Owners Equity)

Owner’s equity represents the owner’s rights to the assets of the business. To calculate owners equity, subtract the value of all liabilities from assets.