Glossary

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Offer price
The price at which you will deal when you buy investment trust shares, which will be higher than the 'mid-market' and 'bid' prices. See dealing spread.
Official List
A list of securities maintained by the UK Listing Authority. The Official List includes all securities that are approved for trading in the UK.
Offshore fund
An investment scheme in which the fund is legally based outside the home country of the person investing in it. A fund might be established offshore for tax reasons or to avoid legal or regulatory restrictions.
Ordinary shares
The main type of equity capital issued by conventional investment trusts. Investors are entitled to a share of income, in the form of dividends paid by the company, and any capital growth.
Ordinary income shares
Split capital investment trust shares that aim to offer a level of income and prospects for capital growth. They are also sometimes known as highly geared ordinary shares or income and residual capital shares. They have no predetermined capital value but are entitled to all surplus assets after payment of prior charges. Depending on the structure of the trust in which the ordinary income share is issued, their entitlement to income may vary. See structural gearing.
Open-ended fund
A fund that can issue new units/shares and redeem them in response to demand from buyers and sellers. Unit trusts and open-ended investment companies (OEICs) are open-ended funds. Opposite of a closed-ended fund.
Open-ended investment company (OEIC)
An open-ended fund in the form of a company that issues shares rather than units. In practical terms, similar to a unit trust.
Options
Provide the opportunity (a 'right' rather than an obligation) for the buyer to buy or sell a certain number of shares, at a future date and a known price.
OTC Instrument
'Over the counter' instrument, ie a non-exchange traded instrument, directly traded with a counterparty eg Deutsche Bank.
Overweight
Being overweight in a particular sector or country means the fund manager has a higher investment than the market average, perhaps because they favour the returns on offer.