The financial world has developed a special investment-oriented language to help describe the stock market, investments, securities for the stock market, stock market analysis, and its conditions. At times you may be confronted with a term which is totally alien or has a completely different meaning from what you thought. Misunderstanding these terms can sometimes lead to the wrong conclusion, and that can cost you money!

What you don't know can hurt you.

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Odd Lot When an investor buys or sells less than the tradable lot of a scrip (e.g.tradable lot at the KSE for PIA is 500 shares) at the Karachi Stock Exchange, he or she is said to be trading an odd lot. Traditionally, odd lots involve higher proportional transaction costs than round lots. Some investors look to the ratio of odd-lot buying versus odd-lot selling to see what very small investors are doing, and then do the opposite. Odd lot theory, as it is known, is based on the idea that small investors usually are wrong.   Open The price paid in a security's first transaction of the current trading day.   Open Interest The number of contracts outstanding for a given option or commodities future. Open interest is a measure in literally how much interest there is in a particular option or future, and is reported in the financial press.   Open-End Fund A fund that is open to new investors where both new investors and existing shareholders may purchase as many shares as they want. Most mutual funds are open-ended. The fund grows as more money comes in. When investors sell, the number of outstanding shares drops. Occasionally, open-end funds are closed to new investors when they become too large and difficult to manage. However, current shareholders in the fund can continue to invest money. Conversely, a closed-end fund raises money only once, offers a fixed number of shares, and these shares are traded on exchanges much like stocks.   Operating (Gains) Losses Includes any adjustments that involve the actual operations of the company. These items actually affect the income of the company.