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![Sources of Financing Sources of Financing](/web/20060205060001im_/http://strategis.ic.gc.ca/epic/home.nsf/images/so_banner_e.gif/$FILE/so_banner_e.gif)
Glossary of Financial Terms - O
O
- Offering Memorandum
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A "prosperous-like" document providing detailed descriptions of a company's past, present, and prospective business operations. It is normally prepared for the use of potential purchasers of
securities offered under the seed capital or private placement prospectus exemptions.
- Operating Lease
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One where the risks and benefits, as well as ownership, stays with the lessor.
- Operating Line of Credit
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A bank's commitment to make loans to a particular borrower up to a specified maximum for a specified period, usually one year.
- Operating Loan
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A loan advanced under an operating line of credit.
- Option
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Right to buy or sell a specified property at a specified amount at some time in the future.
- Overdraft
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The amount by which a check or other payments exceeds the funds on deposits.
- Overdraft Protection
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Is an agreement with the Bank or Financial Institution to cover overdrafts. This service will typically involve a fee and
be limited to a pre-set maximum amount.
- Overdraft System
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System whereby a depositor may write cheques in excess of the balance, with the bank automatically extending a loan to cover the shortage.
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