Letter A Vocabulary Flashcards
An individual or institution that meets certain financial criteria and is thereby allowed to invest in certain types of investments not available to the general public.
Accredited Investor
Trading of securities that occurs after the official trading hours of a stock exchange.
After-Hours Trading
An order to buy or sell a stock that must be executed in its entirety or not at all.
All-Or-None Order (AON)
A measure of an investment’s performance relative to a benchmark, indicating the excess return generated by an investment compared to the market as a whole.
Alpha
Investments in assets different from traditional stocks, bonds, or cash, such as real estate, commodities, or hedge funds.
Alternative Investment
A certificate representing a specified number of shares in a foreign stock that is traded on a U.S. exchange.
American Depository Receipt (ADR)
The process of gradually reducing a debt through installment payments of principal and interest.
Amortization
A financial product that provides regular payments to the holder, often used as a retirement income.
Annuity
The simultaneous buying and selling of securities, currency, or commodities in different markets to take advantage of differing prices for the same asset.
Arbitrage
A method of resolving disputes outside of court, where both parties agree to abide by the decision of an appointed arbitrator.
Arbitration
The lowest price at which a seller is willing to sell a security.
Ask Price
The difference between the ask price of a security and its current market price.
Ask Spread
The strategy of dividing investments among different kinds of assets, such as stocks, bonds, and cash, to achieve a desired risk and return profile.
Asset Allocation
The professional management of various securities and assets to achieve specified investment objectives.
Asset Management
The ratio of a company’s sales to its total assets, measuring how effectively a company uses its assets to generate sales.
Asset Turnover
A measure of a company’s efficiency in using its assets to produce revenue.
Asset Turnover Ratio
Financial securities backed by the cash flows from a specific pool of underlying assets, such as mortgages or credit card receivables.
Asset-Backed Securities
A financial security that represents a claim on the cash flows from specific assets.
Asset-Backed Security
An options term indicating that the strike price is equal to the current market price of the underlying asset.
At-The-Money
A market where buyers and sellers enter competitive bids and offers simultaneously.
Auction Market
A debt security whose interest rate is periodically reset through auctions.
Auction Rate Security
The maximum number of shares that a corporation is legally permitted to issue.
Authorized Shares
The total number of shares a company is authorized to issue as specified in its articles of incorporation.
Authorized Stock
A technical analysis indicator that measures price volatility by calculating the difference between high and low prices for a given period.
Average True Range
