Letter A Dictionary

A shares

This term has two distinct meanings with relatively equal usage.

abandon

To not exercise or sell an option by expiry.

abandonment option

To not exercise or sell an option by expiry.

abatement

Generally, abatement is a reduction or lessoning in intensity.

ABC agreement

When a brokerage firm purchases a New York Stock Exchange membership for an employee, an ABC Agreement details the relationship between the firm and the employee.

ABC Consumer Comfort Index – United States

Assessment of consumer sentiment toward the economy based on telephone interviews of several hundred adults.

abeyance

Estate with no legal title holder or owner.

ability to pay

Generally, ability to pay refers to one’s ability to meet existing or future liabilities.

above par

Refers to the situation where the market value of a security (stock or bond) is above its face value.

absolute advantage

The ability of one state, country,

absolute priority rule

The absolute priority rule specifies the peeking order of creditors during bankruptcy proceedings.

absorption rate

Absorption Rate refers to the ability at which properties are able to be sold…

abstract of title

A transaction record for a piece of land, recording transfers and claims that…

abusive tax shelter

An abusive tax shelter refers to illegally reducing one’s tax obligations.

accelerated benefits

Accelerated Benefits are an insurance option where policy holders may access benefits before an insurance policy is due.

Accelerated Cost Recovery System

The current method of gauging asset depreciation, as required by the United States income tax code,

Accelerated Depreciation

A depreciation method which allows faster write-offs than the straight line method.

Accelerated Depreciation

A depreciation method which allows faster write-offs than the straight line method.

acceleration clause

A provision contained within a loan or credit agreement which allows the lender to call the entire remaining balance

accept

“To agree to specified terms, as in a contract.”,

acceptance

The contractual agreement entered into when the drawee of a time draft writes “”accepted”" on the document and specifies a payment date.

accidental death benefit

The value paid to the beneficiary of a life insurance policy

accommodation paper

A bill or note endorsed by one party (the accommodation party) on behalf of another party

accommodative monetary policy

Central bank policy that strives to stimulate economic growth by increasing the supply of money

account

Financial relationship between two parties involving a transfer of funds, and an agreement to hold them.

account aggregation

The process of combining account information,

accountant

Any trained and qualified person with the requisite skills and knowledge to perform accounting services (aka tax returns, keep/audit/inspect financial records).

accountants letter

An annual statement provided by an independent accountant

accountants opinion

See accountant.s letter

account balance

The amount of money in an account.

account executive

The officer assigned to serve as a liaison between the firm and the customer.

accounting

Accounting refers to a bookkeeping method that records how funds are paid and received for an individual or business.

accounting equation

A form of double entry bookkeeping which identifies the debit and credit elements in a transaction.

account reconciliation

The process of matching all checkbook debits and credits to the final bank statement.

accounts payable

The amount owed by one party to its creditors.

accounts receivable

An amount of money that a firm is owed by another party for goods sold or services rendered.

accounts receivable aging

“A periodic report showing all outstanding receivable balances, broken down by customer and month due.”,

accounts receivable financing

The selling of a firm’s accounts receivable, at a discount, to a factor, who then assumes the risk of the account debtors and receives cash as the debtors settle their accounts.

accounts receivable turnover

The average duration of an account receivable, equal to total credit sales divided by accounts receivable.

account statement

Any document designed to summarize and record all transaction activity in a given accounting period,

account statement

Any document designed to summarize and record all transaction activity in a given accounting period

accredited investor

An investor which meets a certain list of Securities and Exchange Commission (SEC) requirements

Accredited Personal Financial Planning Specialist

A qualified investment planner certified by the Certified Financial Planner (CFP) Board of Standards

accreted value

The price a bond would fetch in the open market assuming current market interest rates were held constant.

accretion

See ‘accretion.’

accretive

Growing in size by external addition.

accrual basis accounting

A method of accounting that tracks revenues and expenses as they are incurred.

accrual bond

A bond which does not pay periodic interest to the bondholder, but accrues interest redeemable upon the bond.

accrual of discount

The annual addition to book value contributed by bonds purchased below par.

accruals

a accretion accretive accrual basis accounting accrual bond accrual of discount accruals accrue accrued benefit accrued dividend accrued expense accrued interest see accrual basis accounting

accrue

To compile events onto an accounting record whether or not any one given event incurred a debit or credit transaction.

accrued benefit

The benefits (usually in the form of pension payments) an employee

accrued benefit

The benefits (usually in the form of pension payments) an employee earns

accrued dividend

A liability listed on a company.s balance sheet, where it remains until the payment

accrued expense

An accounting expense that is recognized and already recorded in a firm.s

accrued interest

Interest that has accumulated on a bond from the previous payment date

accrued market discount

The increase in a Discount Bond.s market value due to its approaching maturity

accrued market discount

The increase in a Discount Bond.s market value due to its approaching maturity

accumulated depreciation

The net depreciation expense a producing asset has incurred to date.

accumulated dividend

The dividend due to shareholder.s, but not yet paid.

accumulated earnings

The earnings not paid out as dividends but instead reinvested in the core business or used to pay off debt.

accumulated earnings tax

A penalty tax (labeled at 39.6%) levied on a firm or company.s retained earnings

accumulation

The act of purchasing over a period of time.

accumulation bond

Accumulation Bonds do not make regular payments of interest – instead accumulating

accumulation period

In investment terms, accumulation period refers to the phase of an investor.s

accumulation unit

A measurement of a fixed or a variable payment which increases an individuals,…

Accumulative Swing Index (ASI)

The Accumulative Swing Index, based on the Swing Index, is a swing or wave system…

ACH

Acronym for Automatic Clearing House. A nationwide electronic funds transfer…

acid-test ratio

A test designed to determine whether or not a firm has enough short-term assets…

acknowledge

“Certify the authenticity of a signature on a brokerage or bank document, such as for an account transfer.”,

acquisition

The act of obtaining control of a corporation, called a target, either by stock…

acquisition cost

The net sum of costs required in order to obtain a property, equipment, or client….

across the board

A market-wide fluctuation where most stock and sectors move in the same direction….

ACRS

Acronym for Accelerated Cost Recovery System. Depreciation methods applied to…

action

Price action refers to the movement of price and volume during a certain window…

action to quiet title

A lawsuit brought to court in order to review and preside over all land disputes,…

active account

An account at a brokerage firm or a bank which generates more activity and transactions then normal.

active asset

An item of economic value that is used on a daily basis to facilitate the routine…

active income

Income received in return for a performed service. Examples include wages, tips,…

active management

A portfolio-management strategy which focuses on outperforming a benchmarked…

active market

A condition in the market typified by heavy transaction volume in a certain commodity, security, or stock.

active money

Money and coins that are circulated in the hands of consumers and businesses….

active participant

An individual who participates in a retirement plan sponsored either by his/her…

activity

The volume of a stock or exchange over a given period of time.,

actual market

A condition of the market typified by heavy transaction volume. This may occur…

actuarial assumption

In the case of retirement plans, an estimate made for the purposes of calculating…

actuarial equivalent

An insurance term used to refer to the expectation of loss and the benefits to be paid out in such an occurrence.

actuarial evaluation

A life-expectancy calculation by a professional actuary.,

actuary

A professional statistician in the employ of an insurance agency. Duties include…

additional paid-in capital

“Capital contributed to a corporation by investors on top of the par value of…

additional principal payment

A payment by a borrower of more than the scheduled principal amount due in order…

add-on service

The degree to which the value of asset is protected against potential losses…

adequacy of coverage

The degree to which the value of asset is protected against potential losses…

adhesion contract

A legally binding contract between two parties where one side has essentially…

adjudication

Also known as a court’s ruling. The examination and subsequent settlement of…

adjustable life insurance

A form of insurance coverage where the policyowner can change the face value,…

adjustable rate

“Any kind of interest rate that changes on a periodic basis. The change is generally…

Adjustable Rate Mortgage

An Adjusted Rate Mortgage (ARM) is a loan where the interest rate may vary for…

adjustable rate preferred stock

Preferred stock whose dividend changes, generally quarterly, according to changes…

adjusted balance method

A formula used to calculate finance charges by adjusting for payments and costs…

adjusted basis

A base price from which to compute the capital gains or losses on a particular…

adjusted book value

The .book value. (value transcribed on business records) adjusted for market value.

adjusted debit balance

The balance owed to a broker after factoring in any paper profits or losses,…

adjusted debit balance

The balance owed to a broker after factoring in any paper profits or losses,…

adjusted futures price

The cash-price equivalent reflected in the price of a futures contract.

Adjusted Gross Income

The income used to determine an individual or couple.s federal income tax. The…

Adjusted Retail Sales – Switzerland

Gauge for goods sold at retail outlets in the past month. Retail Sales is a…

adjusting entry

Journal entries recorded into a firm.s accounting records at the end of a predetermined…

adjustment

A deduction made to charge off a loss, as with a bad debt.

adjustment bureau

A company providing claims adjustment services to insurance companies without an internal claims department.

adjustment date

Exact day on which an Adjustable Rate Mortgage becomes effective. This means…

administrative systems

An internal office and accounting functions.

administrator

An individual appointed by a probate court to handle the estate of a person…

admitted carrier

A state-authorized insurance company. Authorization by a particular state implies…

adoption credit

A tax credit issued on a per-child basis given to individuals or couples adopting…

ADP

The ISO currency code for the Andorran Peseta, the currency of Andorra…

ADR

Acronym for American Depositary Receipt. A negotiable certificate issued by…

ADS

Acronym for American Depositary Share. The share issued under an American Depositary…

ad valorem

A term derived from the Latin phrase ad valentiam which translates to: .

advance

1. An increase in the exchange rate for a currency pair or price of a security;…

Advance-Decline Line

This is one the best known market breadth indicators. Each day, a certain number…

advance rate

The amount for which a lender is willing to issue a loan. This is computed…

advance refunding

A method of paying off maturing bonds prior to their expiration date with newer bonds with a later maturation date.

Advance Retail Sales – United States

Monthly measure of sales of goods to consumers at retail outlets. The figure…

adventure capitalist

Entrepreneur willing to invest money in a risky or uncertain venture in an effort to expand the company in a different area.

adverse opinion

A secondary opinion provided by a professional auditor indicating that a firm.s…

advertising

Description or presentation of a product, idea, or organization, in order to…

advertising sales ratio

A key indicator of marketing efficiency, representing the ratio of advertisement expenditure to actual product sales.

advertorial

An advertisement disguised as editorial.

ADV form

A form detailing financial information regarding a registered investment advisor which is filed with the SEC commission.

advisor

An individual or organization employed by an individual or mutual fund to manage…

advisory letter

Newsletters with the purpose of offering financial advisors to subscribers,…

advisory letter

ADX fluctuates between 0 and 100. Readings below 20 indicate a weak trend or…

ADX Directional Movement Index

ADX fluctuates between 0 and 100. Readings below 20 indicate a weak trend or…

AED

The AED, the currency of The United Arab Emirates (UAE)

AFA

The ISO code for the Afghani. Learn more about the Afghanistan and Afghanistan at GoCurrency.com

affidavit

A sworn statement made in writing under the supervision of a notary or other…

affiliate

A corporation which is closely related to another corporation, but not under direct control, much like a subsidiary relationship.

affiliated chains

A group of non-competing retail stores, whose association is designed to exploit economic advantages in large-scale purchasing.

affiliated person

Any person with the individual ability to directly influence the actions of a corporation (i.e. executives, owners, and directors).

affiliated wholesalers

Wholesalers sponsoring a group of affiliated retailers, generally providing…

affinity fraud

Investment fraud which preys upon specific and identifiable religious, demographic, or ethnic groups.

affirmative obligations

An obligation set by the National Association of Securities Dealers (NASD) which…

affordability analysis

A detailed examination of an individual’s ability to afford a house, taking…

affordability index

A standardized gauge used to determine whether a consumer.s financial standing…

Afghani

The official currency of Afghanistan. Learn more about the Afghanistan and Afghanistan at GoCurrency.com

after acquired clause

A clause added to legal contracts in order to afford more protection to lenders….

after-acquired collateral

The property a debtor acquires rights to after the debtor agrees to the creation…

after-hours trading

After Hours Trading involves placing trades after the close of the market. This…

aftermarket

Also known as ‘secondary market.’ The immediate market response to an IPO….

after-tax

An amount (generally income) after taxes have been subtracted.

after-tax basis

The standard used to compare rates of return between a corporate taxable bond and a municipal tax-free bond.

after-tax contributions

Any kind of Contributions to a retirement plan which are subject to federal income tax. Also known as voluntary contributions.

against the box

A short sale made by the holder of a long position in the same stock. In other…

agency

Name for the arrangement where an agent intermediates between purchaseers and…

agency bond

A bond issued by a government agency, although the bonds are not fully guaranteed…

agency security

A security, generally a bond, issued by a U.S. government agency. Agency securities…

agent

One party authorized to act on behalf of another. The other is known as the…

agent bank

A bank that has been authorized by an individual to act as his/her agent. An…

age-weighted plan

A retirement plan which allows employers to contribute to an employee.s retirement…

agglomeration

Accumulating companies of several diverse and unrelated activities into a single entity. Examples include conglomerate companies.

aggregate

Total, sum.

aggregate corporation

A corporation with more than one shareholder.

aggregate demand

The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

aggregate demand curve

Parallel to the demand curve, a theoretical graph showing the aggregate demand at different price levels.

aggregate exercise price

The strike price of an option times the number of underlying securities in the…

aggregate supply

The total amount of goods and services produced within an economy at a given…

aggregate supply curve

Parallel to the supply curve, a theoretical graph showing the aggregate supply at different price levels.

aggressive

The strike price of an option times the number of underlying securities in the…

aggressive growth fund

A mutual fund whose purpose is to achieve the highest possible gains in capital….

AGI

Acronym for Adjusted gross income (AGI) is a number used to determine your federal…

aging schedule

A schedule classifying accounts receivable, inventory, or loans by the time…

agreement among underwriters

Contract between participating members of an investment banking syndicate….

AIG Performance of Service Index (Australia)

AIG Performance of Service Index (Australia)Tracks monthly developments in the…

Albanian Lek

The currency of Albania. ISO Code ALL

alert

A notification, often by email or pager, of a market event such as a stock reaching a target price.

Algerian Dinar

The currency of the Algeria. ISO international currency code: DZD. Learn…

alienate

To transfer a property title.

alienation

The transfer of property, whether voluntary or involuntary, from one entity to another.

alienation clause

A type of clause which allows the lender to demand full payment when mortgaged property is conveyed to another owner.

alien corporation

A company that conducts its operations in one country and is registered in another….

alimony

Payments made to after separation or divorce to a former spouse. This is a… ALL

ALL

The Albanian Lek, the currency of Albania. ISO Code ALL

allegation

An assertion of fact, to be proven in court.

allied member

General partner or voting stockholder in a firm which is a member of the New…

alligator spread

A position composed of a combination of put and call options that are collectively…

All Industry Activity Index – Japan

Evaluates the monthly change in overall production by all sectors of the Japanese…

allocation

Designation of an item to a specific purpose or place. This may be done in…

allonge

Paper attached to a document for additional endorsements when there isn’t enough space for the signatures.

all or any part

A stipulation of a purchase or sell order for a discretionary account which…

all or none

A stipulation of a purchase or sell order which instructs the broker to either…

allotment

The number of shares granted to each participating underwriting firm that they are permitted to sell during an IPO.

allottee

Any entity which has subscribed to purchase securities in an underwriting.

allowance

A sum set aside for an occurrence that may or may not come to pass. For example,…

allowance for depreciation

An accumulated expense used to write off a fixed asset. This lasts the duration…

allowance for doubtful accounts

Estimations regarding uncollected receivables which are made by a company and documented on its balance sheet.

all-risks coverage

Property insurance that specifies exclusions to coverage. Losses from all causes…

alpha

A coefficient which measures risk-adjusted performance, factoring in the risk…

alternate account

A type of account which multiple individuals can draw against without permission from each other.

alternate payee

An individual who is recognized as having a right to receive some or all of…

alternative assets

Assets that have the potential to provide economic value to the owner but are…

Alternative Minimum Tax (AMT)

Also known as AMT. An IRS system created to ensure that high-income individuals,…

alternative order

Order giving a broker a choice between two courses of action regarding one security.Also…

amalgamation

A consolidating merger. This is the formation of two or more separate businesses…

AMD

The currency of Armenia. ISO internation currency code: AMD Learn…

amended return

Form filed to correct, supplement, or replace an original tax return. This…

amendment

A change or addition to a legal document which, when properly signed, has the same legal power as the original document.

American Association of Individual Investors (AAII)

American Association of Individual Investors is a non-profit organization that…

American Depositary Receipt

An issue made by the U.S. depositary bank, representing one or more shares of a foreign stock or a fraction of a share.

American Depositary Share

Share issued under a deposit agreement representing the underlying ordinary share which trades in the issuer’s home market.

American Municipal Bond Assurance Corporation

AMBAC. A corporation which offers insurance policies on new municipal bond offerings….

American option

An option which can be exercised anytime during its lifespan. The lifespan…

American Stock Exchange

Abbreviated as AMEX, refers to the second-largest stock exchange in the U.S.,…

American-style option

A type of option that can be exercised at any time between the purchase date…

AMEX

See ‘American Stock Exchange.’

amortization

The gradual elimination of debt in regular payments over time. This is a specified…

amortization method

A distribution calculation method for making penalty-free early withdrawals…

amortization of premium

Charges made against the interest received on a debt in order to offset a premium…

amortization schedule

See ‘amortization.’

amortization term

Time it takes to completely pay off a debt.

amortize

See amortization.

amortized

See amortization.

amortized value

The value of a security as determined by the process of amortization.

amount

Quantity or value, as in a transaction or account balance.

amount recognized

The amount of gain reportable and subject to tax.

analysis

The examination and evaluation of the relevant information to select the best course of action from among various alternatives.

analyst

An employee of a bank, brokerage, advisor, or mutual fund who studies firms…

analyze

To study and interpret past, present and projected corporate, economic and market…

Andorran Franc

The currency of Andorra.See GoCurrency World Currencies Page & Currency Converter

Andorran Peseta

The currency of Andorra (ADP). First, it was pegged to the Spanish Peseta,…

Andrews Pitchfork

The lines formed by Andrews’ Pitchfork can help predict channels of support…

ANG

The currency of Netherlands-Antilles. ISO internation currency code:…

angel

An individual who provides capital to one or more startup firms. The individual…

angel investor

An individual who funds small start-ups. This individual is usually a family…

Angolan Kwanza

The currency of Angola. ISO international currency code: AOA Learn…

announcement date

The date on which a firm’s directors meet to announce the date and amount of…

annual

Yearly.

annual exclusion

The maximum amount that an individual is allowed to give another person without…

Annual Gross Domestic Product (GDP) – Germany – Euro-zone

The Gross Domestic Product is a comprehensive measure of a Germany’s overall…

annualize

To extrapolate a value so that it reflects an expected or approximate total for a full year.

annualizing

The making of calculations for a period of less than a year as if the period…

annual meeting

The firm gathering, generally held at the end of each fiscal year, at which…

annual mortgagor statement

A report sent to the mortgagor once a year, detailing the taxes and interest…

Annual Percentage Rate

The effective interest rate charged on an installment loan.Abbreviated ‘APR.’…

Annual Percentage Yield

The effective annual rate of return including the effect of compounding interest.Abbreviated…

annual report

Audited document required by the SEC and sent to a public firm’s or mutual fund’s…

annual return

The increase in value of an investment, expressed as a percentage per year….

annuitant

An individual who is entitled to receive benefits from an annuity.

annuitize

To begin to receive payments from an annuity.

annuity

Payment received over a period of regular intervals. This typically refers…

annuity factor method

A distribution calculation method for making penalty-free early withdrawals…

annuity unit

An accounting measure used to determine the quantity of an annuity payment….

antedate

A date assigned to a contract or instrument which precedes the date that contract or instrument was written or executed.

anticipated holding period

The projected duration of a limited partner’s possession of an asset. In the…

anticipation

The paying of a bill or debt obligation before it is due.

anticipation note

A type of short term bond which will be paid off with the proceeds from a subsequent,…

antidilutive

Term used to describe a convertible security which could increase a corporation’s…

antique

A collectible or other item which is old (generally at least 100 years old)…

antitrust laws

The Federal laws forbidding businesses from monopolizing a market or restraining free trade.

ANZ Commodity Price Index – New Zealand

Measures the monthly price change of New Zealand ‘s seventeen main commodity…

ANZ Job Advertisements – Australia

A monthly report measuring the number of jobs advertised in the major daily…

ANZ Job Vacancies – New Zealand

Figure that gauges the availability of employment in the New Zealand job market…

AOA

The currency of Angola. ISO international currency code: AOA Learn…

applicable federal rate

The interest rate published by the U.S. Treasury that is used in computing the…

applied economics

Employing economic theories in real-world business.

applied research

Utilizing pure research to develop real-world products.

appraisal

A professional opinion, generally written, of the market value of a property,…

appraiser

An individual qualified by education, training, and experience to provide appraisals. Also known as evaluator.

appreciation

The increase in value of assets such as stocks, bonds, currency, and property. opposite of depreciation.

appropriation

1. In government spending, appropriation refers to the authorization of a government…

approved list

Bonds or other securities that a bank may hold as investments.Also known as…

APR

Acronym for Annual Percentage Rate. The yearly cost of a loan, including interest,…

APT

Acronym for Arbitrage Pricing Theory. An alternative asset pricing model to…

APY

Acronym for Annual Percentage Yield. The rate of return on an investment for…

arbitrage

Profit made from a price discrepancy between markets when securities are purchased…

arbitrage house

A financial institution that generates revenue primarily by exploiting price…

Arbitrage Pricing Theory

A theory held in asset pricing which holds that the expected return of a financial…

arbitrageur

An investor who pursues profit from price inefficiencies. This is attempted…

arbitration

A process in which a disagreement between two or more parties is resolved by…

arbitrator

A private, neutral person chosen to arbitrate a disagreement, as opposed to…

Argentine Peso

The currency of Argentina. ISO international currency code: ARS Learn…

arithmetic mean

Simple average, equal to the sum of all values divided by the number of values.This…

Armenia Dram

The currency of Armenia. ISO internation currency code: AMD Learn…

Arms Index

A technical indicator which determines market balance.Also known as ‘TRIN.’…

Arms Index (TRIN)

The Arms Index, also referred to as TRIN, was developed in 1967 by Richard Arms….

arm's length price

A transaction between two related or affiliated parties that is conducted as…

arm's length transaction

A transaction between two related or affiliated parties that is conducted as…

arrearage

Unpaid, overdue debt. This may refer specifically to the portion of a serial…

arrears

The amount of debt due to be paid, overdue in payment.

ARS

The currency of Argentia.. ISO international currency code: ARS Learn…

Articles of Association

Petitions of grievances made by the 13 colonies to Great Britain drafted by the first Continental Congress in 1774.

Articles of Incorporation

A set of documents filed with a government body for the purpose of legally documenting the creation of a corporation.

Aruban Guilder

The currency of Aruba. ISO international currency code: AWG Learn more about Aruba and the Aruban Guilder at GoCurrency.com

ascending bottoms

A technical analysis term for a chart pattern in which each successive low price…

ascending tops

A technical analysis term for a chart pattern in which each successive high…

Ascending Triangles Chart Pattern

With ascending triangles, trend lines converge with a horizontal trend line…

Asian dollars

U.S. dollars located in Asia.

Asian option

An option whose payoff depends on the average price of the underlying asset…

as is

Term in an agreement, such as for software licensing, indicating that no expressed or implied warranty is provided.

ask

The lowest price that any investor or dealer has declared that he/she will sell…

asked price

The price at which a security or commodity is offered for sale on an exchange or in the over-the-counter market.

asking price

The sale price of a given item.Also known as ‘ask price,’ ‘asked price,’ ‘ask,’…

ask size

The number of shares a seller is willing to sell at any given price. Often…

assembly plant

Location of physical assembly plant where an assembly line is located and production-line assembly work occurs.

assessed value

Dollar value assigned to property for purposes of assessing taxes. This value…

assessment

The process of placing a value on an asset for the purpose of taxation. Also…

assessment bond

Municipal bond that is repaid from taxes imposed on those who benefit directly…

assessor

A public official who performs assessments

asset

Any item of economic value owned by an individual or corporation, particularly…

asset acquisition

A buy-out strategy in which key assets of the target firm are purchased, rather…

asset allocation

Long-term investment plan strategy under which all of the investor’s investable…

asset allocation fund

A mutual fund that splits its investment assets among stocks, bonds and other…

asset-backed security

Bonds or debt securities collateralized by the cash flow from a pool of auto…

asset-based finance

A specialized method of providing structured working capital and term loans…

asset-based lending

A business loan secured by offering collateral such as inventory, accounts receivable and/or other balance-sheet assets.

asset class

Category of Assets, such as cash equivalents, stocks, bonds, and their subcategories,…

asset conversion loan

A short-term loan that repaid by converting an asset into cash. Examples of…

asset coverage

The extent to which a company’s net assets cover a particular debt obligation, class of preferred stock, or equity position.

asset/equity ratio

Total assets divided by shareholder equity. Asset/equity ratio is often used…

asset financing

Financing which converts assets into working cash in exchange for a vested security interest in those assets.

asset-liability management

A form of management employed by companies which coordinates the handling of…

asset management

1. The management of a client’s investments by a financial services company….

asset management account

Record of financial transactions which is held in a brokerage house.Also known…

asset play

A stock which is valued incorrectly but is still attractive because its combined asset value is greater than its market capitalization.

asset stripper

An individual or corporate raider who takes over a company planning to sell large assets in order to repay debt.

assets under management

The total value of assets that a mutual fund, hedge fund, or other portfolio…

asset swap

Exchange of one asset for another for the purpose of improving the quality of a bank’s loan portfolio.

asset turnover

Measure of efficiency of asset use in generating sales revenue. This is a ratio…

assign

To transfer ownership of a property or right to another party by signing a document.

assignability

The ability of an asset to be transferred from one party to another.

assignee

Individual to whom a title, claim, property, interest, or right has been transferred.

assignment

The receipt of an exercise notice by an option writer that requires him/her…

assignment of mortgage

A written document serving as evidence of a transfer of a loan obligation from the original borrower to a third party.

assignment of rents

A contract which transfers rents and income from the tenant of a property to…

assignment to creditors

The transfer of a property for the benefit of creditors or in trust.

assignment to creditors

The transfer of a property for the benefit of creditors or in trust.

assignor

An individual who transfers a title, claim, property, interest, or right to another person.

assimilation

When a new issue of a stock or a bond is fully absorbed by the public the issue…

associate member

Designation for a member of a stock exchange who does not have a seat on the exchange.

association

A group of individuals who meet for a common purpose.

assumable mortgage

A form of mortgage which allows the borrower to transfer the unpaid balance…

assumed bond

Corporate bond which is issued by one company but payable by another because the liability has been assumed by the latter.

assumption

The taking over of an obligation or liability from another party.

at best

Most advantageous outcome. This is an idiom used to describe not the ideal,…

at call

Any transaction which occurs in the call money market.

ATM

Automated Teller Machine. Located at bank branches among other places, this…

at par

An idiom used to state that a price is the same as the face value. Usually…

at risk

Any security which is exposed to the danger of loss. More than the possibility…

ATS

The currency of Austria. ISO international currency code: ATS. The…

at sight

Denotes a negotiable instrument when presented to the drawee. Examples include a bill of exchange.

attachment

The act of seizing a debtor’s property and placing it under a court’s control.

attest

To affirm as true.

at the bell

The immediate open or close of trading. This term comes out of the tradition…

at the close

Also known as ‘on close.’ The end of a trading session. Sometimes this refers…

at the figure

At the nearest whole number. Often meaning the integer closest to a decimal bid or ask.

at the full

At the nearest whole number. Often meaning the integer closest to a decimal bid or ask. Also known as at the figure.

at the market

A purchase or sell order in which the broker is to execute the order at the…

at the money

A condition in which the strike price of an option is equal to (or nearly equal to) the market price of the underlying security.

at the opening order

An order to purchase or sell a given equity at the price when the market opens….

attorney in fact

An order to purchase or sell a given equity at the price when the market opens….

auction

A method for selling an asset to the highest bidder.

auction market

A system in which purchasers enter competitive bids and sellers enter competitive…

AUD

The currency of Australia. ISO international currency code: AUD….

audit

An examination and correction (if necessary) of any individual or firm’s financial…

audited financial statements

A firm’s financial statements which have been prepared and certified by a Certified…

auditor

An individual licensed to check the accuracy of financial records. Generally…

auditor's report

The official report made by a public accountant following the completion of…

audit trail

A record from which all accounting data can be tracked back to their source….

Australian Dollar

The currency of Australia. ISO international currency code: AUD….

Austrian Schilling

The currency of Austria. ISO international currency code: ATS. The…

AutEx

Electronic alert system for brokers. This system notifies brokers that other…

authentication

The verification that a legal document is genuine or valid, such as through a seal from an authorized public official.

authority bond

Bond issued by and payable from the revenue of a government agency or a corporation…

authorize

Grant the right to perform certain acts.

authorized shares

The company.s maximum number of shares which it can legally create under its Articles of Incorporation.

authorized stock

The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation.

autocorrelation

A technique used to detect cyclic activity within the market.Also known as ‘lagged…

Automated Order Entry System

An electronic system which bypasses the floor broker in order to expedite the execution of smaller orders.

Automated Pricing and Reporting System

The system the NYSE uses to process and determine the price for qualified odd-lot…

Automatic Clearing House

A system of the U.S. Federal Reserve Bank that provides electronic funds transfer (EFT) between banks.

automatic exercise

The procedure that prevents in-the-money equity options from expiring and becoming…

Automatic Funds Transfer

Direct transfer of funds between accounts without direct management. Facilitated…

automatic investment plan

An investment plan where contributions are allowed to be made over a period…

automatic investment plan

An investment plan where contributions are allowed to be made over a period…

automatic reinvestment plan

An investment program which reinvests capital gains or other income received from investments automatically.

automatic stabilizers

Built-in changes in government spending and taxation which usually serve the purpose of cooling down the economy.

automatic withdrawal

A mutual fund program that fixes payments to shareholders each month or each quarter.

autoregressive

Predicting future data using past information.

Auto Sales – Japan

The number of automobiles sold in Japan each month, based on the number of new…

availability float

The time period (or sometimes, the dollar amount) represented by checks that have been deposited but not cleared.

available assets

Assets that may be sold relatively quickly, to meet an immediate need.

average

An arithmetic mean of a group of stocks designed to represent the overall market…

average accounting return

The average accounting return measures the return on an investment, after taxes…

average collection period

The average time period for which receivables are outstanding. Equal to accounts…

average contribution percentage

A test applied to retirement plan contributions in order to prevent the plan…

average daily balance

The average amount that exists in an account over a period of time. The number…

average daily balance method

A technique for calculating finance charges (such as in a bank account, charge…

average daily volume

The number of shares traded per day, averaged over some time period, generally one year.

Average Directional Index ADX

ADX fluctuates between 0 and 100. Readings below 20 indicate a weak trend or…

average down

The purchasing of additional shares of a stock that one already holds a position…

Average Earnings Increase (AEI) – UK

An indicator for earnings growth. The data excludes bonuses, which might distort…

average effective maturity

A measure of a bond’s maturity which takes into consideration the possibility…

average equity

Average daily balance in a brokerage account. Brokerages use this amount to calculate their mark-to-market.

average life

The length of time that will pass before one-half of a debt obligation has been retired.

average nominal maturity

A measure of a bond’s maturity which, unlike average effective maturity, does…

average option

An option whose payoff depends on the average value of an underlier over a specified period.

average price per share

The most common method for calculating taxes owed on mutual fund redemptions,…

Average True Range

Average True Range (ATR) is a volatility indicator. It is also used as part…

average up

The purchasing additional shares of a stock which one holds a position in, and…

average weighted maturity

The length of time until the average security in a fund will mature or be redeemed…

averaging

see dollar cost averaging, value averaging, averaging down. More generally,…

away from the market

Idiom used to describe when the bid on a Limit Order is lower or the offer price is higher than the current market price.

AWG

The currency of Aruba. ISO international currency code: AWG Learn more about Aruba and the Aruban Guilder at GoCurrency.com

Azerbaijan Manat

The currency of Azerbaijan. ISO international currency code: AZM Learn…

Azerbaijan Manat New Spot

The new currency of Azerbaijan. ISO international currency code: AZM Learn…

AZM

The currency of Azerbaijan. ISO international currency code: AZM Learn…

AZN

The currency code for the new currency of Azerbaijan. The full name of the…

Azores Escudo

The currency of Azores.

Japanese Yen

The currency of Japan. Learn more about the Japanese yen and Japan at GoCurrency.com