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O
OEICs
Open-ended investment companies. These are very similar to *unit trusts*, but are constituted as companies rather than trusts. They are the established structure in many other European countries and can be *single* or *dual-priced*.
Offer price
Some *unit trusts* and *OEICs* have separate prices for buying and selling *units*/*shares*. The offer, or buying, price is usually higher than the bid, or selling, price as it includes an *initial charge*.
Open-ended fund
Funds such as *unit trusts* and *OEICs* which expand and contract by issuing or cancelling *units*/*shares* depending upon demand.
Options
Provide the opportunity (a ‘right’ rather than an obligation) for the buyer to purchase or sell a certain number of *shares*, at a future date and a known price.
Overseas funds
*Unit trusts* and *OEICs* which are based outside of the UK (but within Europe) and which are authorised by the *Financial Services Authority* and sold into the UK via *distributor status*.