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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

OPEX

Definition:

Just a fun way of saying operating expenses. (Hey, something about finance has to be fun, right?)

The term refers to the cost of running a business. It can include the cost of staples and ink or the cost of paying employee wages. When companies start getting into trouble, they sometimes think about trimming back on their OPEX. This can result in a leaner, meaner company—or in disaster. Cut operating expenses too far and you won't have enough staff and stuff to offer your customers a good product or service.