OMO meaning in Stock Exchange ?

Answer:

What is Open Market Operations mean?

An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks. The central bank can either buy or sell government bonds (or other financial assets) in the open market (this is where the name was historically derived from) or, in what is now mostly the preferred solution, enter into a repo or secured lending transaction with a commercial bank: the central bank gives the money as a deposit for a defined period and synchronously takes an eligible asset as collateral.

Central banks usually use OMO as the primary means of implementing monetary policy. The usual aim of open market operations is—aside from supplying commercial banks with liquidity and sometimes taking surplus liquidity from commercial banks—to manipulate the short-term interest rate and the supply of base money in an economy, and thus indirectly control the total money supply, in effect expanding money or contracting the money supply. This involves meeting the demand of base money at the target interest rate by buying and selling government securities, or other financial instruments. Monetary targets, such as inflation, interest rates, or exchange rates, are used to guide this implementation.

In the post-crisis economy, conventional short-term open market operations have been superseded by major central banks by quantitative easing (QE) programmes. QE are technically similar open-market operations, but entail a pre-commitment of the central bank to conduct purchases to a pre-defined large volume and for a pre-defined period of time. Under QE, central banks typically purchase riskier and longer-term securities such as long maturity sovereign bonds and even corporate bonds.

reference

Full Form	Category
Office of Marine Operations	Academic & Science
Mostar	Airport Code
Open Market Operation	Banking
Oracle Media Object	Computing
Odd Man Out	General
Obedineta Makedonska Organizacija	General
One Man Operated	General
One Man Operation	General
Online Math Open	General
Outstanding Monetary Operations	General
Old Mother Owl	General
Outpowers Mess Overtime	General
Otoom Movement and Otoom	General
Open Market Order	General
Open Minded Organisation	General
Online Merge Offline	General
Oblivion Mod Organizer	General
Offer More Options	General
Ohio Mini Owners	General
Outboard Motor Oil	General
Office of the Medicare Ombudsman	General
Occupational Medicine Office	Governmental
Old Man Out	Internet
On My Own	Messaging
Orderly Medical Officer	Military and Defence
Open Market Operations	Stock Exchange