Glossary of Financial Terms

Offer – Willingness to sell at a given price.

Operating costs – Also known as overhead - costs which are additional to the direct costs of manufacturing or of providing services.

Operating margin – Turnover of a company’s sales minus its direct costs and overhead.

Operating profit – Company's profit after deducting its operating costs from gross profit.

Organic growth – When a company increases the turnover of its existing business.

Outsourcing – Purchasing a professional service for a company from another business such as payroll, taxes, and marketing.

Overdraft – A bank or other financial institution charges an overdraft enabling an account holder to borrow up to an agreed amount over an agreed time.