I Need the Definition of...
Financial dictionary terms starting with “a”
A priori probability is a method to determine the likelihood an asset's price will behave a certain way based on odds, not history. See More.
A shares are a type of mutual fund share. They are distinguished from B Shares and C Shares by their load (fee) structure. See More.
A+ and A1 are actually two ratings from different ratings agencies: Standard & Poor's uses the A+ rating, and Moody's uses the A1 rating. Both ratings indicate a relatively high level of creditworthiness. See More.
A- and A3 are actually two ratings from different ratings agencies: Standard & Poor's uses the A- rating, and Moody's uses the A3 rating. Both ratings indicate a relatively high level of creditworthiness. See More.
A. Michael Spence is an economist who won the 2001 Nobel Prize for his work in market-signaling theory. See More.
The ABA Bank Index is a composite market index comprised of small retail and community banks. See More.
An ABA transit number is a unique identifier assigned to banking institutions by the American Bankers Association (ABA). See More.
In the business world, abandonment refers to the purposeful surrender of ownership of an asset. See More.
Abandonment and salvage is a term that refers to one party's relinquishment of an asset and another party's subsequent claim to the asset. See More.
An abandonment clause is a provision in an insurance contract that ensures full compensation in the event of abandonment. See More.
An abandonment option is a clause in a contract that permits either party to leave the contract before obligations have been fulfilled. See More.
Abandonment value refers to the value of a project or investment were it to be liquidated presently. See More.
An abatement cost refers to the cost associated with the voluntary or compulsory removal of an undesirable result of a production process. See More.
An ABC agreement is a contractual agreement between an investment house and its broker which allows the firm to purchase a seat (membership) on the New York Stock Exchange (NYSE). See More.
In the strictest terms, abeyance means temporary inactivity. In the finance world, the term generally refers to unknown ownership. See More.
Ability to pay refers to a borrower’s capacity to make good on his loan obligations. In banking, ability to pay is often called “financial capacity.” See More.
Ability-to-pay taxation is a tax that's assessed based on the taxpayer's ability to pay the tax. See More.
Also called the residual income model, the abnormal earnings valuation model is a method for predicting stock prices. See More.
Abnormal rate of return, also known as "alpha" or "excess return," is the fraction of a security's or portfolio's return not explained by the rate of return of the market. Rather, it is produced from the expertise of the inves See More.
Abnormal return, also known as "alpha" or "excess return," is the fraction of a security's or portfolio's return not explained by the rate of return of the market. Instead, it is a result of the expertise of the investor. See More.
In the business world, abnormal spoilage refers to the unusual loss of goods or work in progress. See More.
Above full-employment equilibrium occurs when a country's gross domestic product (GDP) is higher than normal. See More.
When a bond's price is above par, the bond is selling at a premium above face value. See More.
Above the market describes the price at which a person wants to buy or sell a security. See More.
Above water is a term to describe being financially stable. In accounting, the term often refers to assets whose market value is higher than book value. See More.
An above-the-line deduction is a tax deduction that reduces adjusted gross income. See More.
In the business world, absenteeism refers to the rate at which employees do not arrive for work as scheduled. See More.
Absolute advantage exists when a business can produce a good or service more efficiently than any other business. Famed economist David Ricardo coined the term in the early 1800s. See More.
In an interest rate swap, the absolute rate is the sum of the fixed rate component and the variable bank rate. See More.
An abusive tax shelter is an investment strategy that illegally shields assets from tax liability. See More.
The Accelerated Cost Recovery System (ACRS) is a depreciation method that assigns assets periods of cost recovery based on specific IRS criteria. Since 1986, the Modified Accelerated Cost Recovery System (MACRS) has been far more prevalent. See More.
An accelerated death benefit is a portion of a life insurance policy that allows policyholders to receive their death benefits before they actually die. See More.
Accelerated depreciation is a depreciation method whereby an asset loses book value at a faster rate than the traditional straight-line method. Generally, this method allows greater deductions in the earlier years of an asset and is used to minimize See More.
Accelerated vesting occurs when a stock option becomes exercisable earlier than originally scheduled. See More.
Accident and health benefits are a package of benefits offered by companies to employees and their families covering illness and providing income benefits in the event of accidental death or injury. See More.
Accidental death and dismemberment insurance (AD&D) is coverage for accidental death or injury to the insured. “Dismemberment” usually covers the loss of a limb, paralysis, or the loss of hearing or eyesight. AD&D is typically no See More.
Accord and satisfaction is a legal term that denotes accepting compensation in lieu of some contractual obligation from another party. See More.
An account executive is a person responsible for managing a relationship with a customer. See More.
Also called an account hold, an account freeze occurs when a bank or other financial institution prevents any transactions from hitting an account. See More.
An account history is a statement of all the activity that has occurred in an account for a given period of time. See More.
Also called an account freeze, an account hold occurs when a bank or other financial institution prevents any transactions from hitting an account. See More.
An accountant is trained to compile, inspect, interpret, and/or report financial statements and tax returns that comply with governmental and regulatory authority requirements. See More.
An accountant's letter, also called an auditor opinion, is a written statement describing an auditor’s independent, unbiased and qualified evaluation of the accuracy and completeness of a company’s financial statements and practices, See More.
An accountant's opinion is a concise written statement by a certified accountant concerning the accuracy of a company's financial records. See More.
Accounting is the process of systematically recording, measuring, and communicating information about financial transactions. See More.
Accounting conservatism is one of the four accounting conventions, which are standards, customs or guidelines regarding the application of accounting rules. See More.
Accounting conventions are standards, customs or guidelines regarding the application of accounting rules. See More.
Accounting earnings are some of the most closely followed numbers a company publishes. Care should be taken when comparing accounting earnings over time, as many companies and industries are cyclical and/or seasonal. As a result, comparison See More.
An accounting error is an error in the process of systematically recording, measuring and communicating information about financial transactions. See More.
An accounting period is the time interval reflected by the data in a financial statement. See More.
Accounting principles govern the rules of accounting and reflect the latest accounting methodologies. See More.
The accounting rate of return (ARR) is a simple estimate of a project's or investment's profitability that subtracts money invested from returns without regard to interest accrual or applicable taxes. See More.
Accounting research bulletins (ARBs) are publications from the Accounting Principles Board of the American Institute of Chartered Public Accountants. See More.
Accounts payable (A/P) are amounts owed to suppliers and other creditors for goods and services bought on credit. See More.
The accounts payable turnover ratio is a company's purchases made on credit as a percentage of average accounts payable. The formula for accounts payable turnover ratio is: Accounts Payable Turnover = Net Credit Purchases/Average Accounts Pa See More.
Accounts receivable (AR) are amounts owed by customers for goods and services a company allowed the customer to purchase on credit.Said another way, when a company delivers a product or service to its customers, in many instances those customer See More.
Accounts receivable aging is a report showing the various amounts customers owe a company and the length of time the amounts have been outstanding. See More.
Accounts receivable financing, also called factoring, is a method of selling receivables in order to obtain cash for company operations. Accounts receivable (A/R) are amounts owed by customers for goods and services a company has sold to those custom See More.
Accounts uncollectible, also called allowance for doubtful accounts (ADA), is a reduction in a company's accounts receivable. Accounts uncollectible equals the amount of those receivables that the company's management does not expect to actually coll See More.
An accredited investor is an individual or organization allowed to participate in higher risk investments such as hedge funds, angel investor networks, and some limited partnerships. See More.
An accreting principal swap is a swap in which the two parties to the contract agree to pay interest on a growing principal amount. See More.
Accretion is growth, typically in earnings, usually after an acquisition or other significant event. In the bond world, accretion refers to the capital gains earned on a bond purchased at a discount. See More.
An accretive acquisition is an acquisition that increases the acquirer's earnings per share. See More.
Accrual accounting is an accounting method whereby revenue and expenses are recorded in the periods in which they are incurred. See More.
Accruals are records of revenue and expenses in the periods in which they are incurred. They are a key component of the accrual method of accounting. See More.
To accrue is to record revenue and expenses in the periods in which they are incurred. Accruals, the result of accruing, are key components of the accrual method of accounting. See More.
An accrued expense refers to any expense incurred and reported during an accounting period, but for which payment has not yet been made. See More.
Accrued interest refers to interest that builds up on a company's outstanding payables and receivables. This interest has been accounted for, but not yet transacted. See More.
Accrued liabilities are records of revenue and expenses in the periods in which they are incurred. They are a key component of the accrual method of accounting. See More.
Accrued market discount refers to the steady increase in value of a discounted bond from the time of purchase until maturity. See More.
Accrued revenue is revenue recorded in the periods in which it is incurred. See More.
Accumulated depreciation is the sum total of the depreciation recorded for certain assets. See More.
Accumulated earnings is the sum of a company's profits, after dividend payments, since the company's inception. It can also be called retained earnings, earned surplus, or retained capital. See More.
The accumulated earnings tax is a charge levied on a company's retained earnings. Also called the accumulated profits tax, it is applied when tax authorities determine the cash on hand to be an excessively high amount. See More.
Accumulation phase refers to the period of time (often several years or even decades) during which an annuitant (annuity policy holder) is making cash contributions to an annuity account. After the accumulation phase ends, the annuitizatio See More.
The acid-test ratio is a measure of how well a company can meet its short-term financial liabilities. See More.
An acquiree, also called a target, is a company that is purchased by an acquirer. See More.
An acquirer is a person or company that purchases all or a portion of an asset or company. See More.
An acquisition is the purchase of all or a portion of a corporate asset or target company. See More.
Acquisition debt is money that is borrowed in order to purchase a company or asset. A leveraged buyout (LBO) is a method of acquiring a company with money that is nearly all borrowed. See More.
An acquisition loan is money borrowed specifically to purchase a company or asset. See More.
An acquisition premium is the difference between the actual price paid to acquire a company and the estimated real value of the acquired company before the acquisition. It is often recorded as "goodwill" on the balance sheet. See More.
An active bond is a corporate bond that is traded actively on the New York Stock Exchange (NYSE). See More.
Active bond crowd refers to the group of bond traders of the New York Stock Exchange (NYSE) that trades the highest volume of active bonds. See More.
The opposite of passive investing, active investing is an investment strategy that advocates significant trading and a short-term horizon. See More.
Active management is an investment strategy that tries to create excess returns through the recognition, anticipation, and exploitation of short-term investment trends. See More.
Also called tracking error, active risk is the difference between a portfolio’s returns and the benchmark or index it was meant to mimic or beat. There are two ways to measure active risk. The first is to subtract the benchmark’s cumul See More.
An activist investor invests in a company for the purpose of changing or influencing the company's decisions. See More.
Activity based management (ABM) is an administrative method which examines how a company incurs costs from the standpoint of its activities rather than its final products. See More.
An activity ratio is a metric which determines the ability of a company to convert its balance sheet accounts into revenue. See More.
Actual return refers to the nominal return made on an investment during a given period. See More.
An actuary is a person who evaluates the likelihood of certain events and creates plans to deal with those events. See More.
An ad valorem tax is a property tax levied based on the value of the property in question. See More.
Adam Smith is one of the world's most famous economists. Modern capitalism owes its roots to Adam Smith and his Wealth of Nations, which many consider the single most important economic work in history. Though other economists such as Marx and Keynes See More.
Additional paid-in capital (APIC), also called capital in excess of par value, is a measure of how much money investors have pumped into the company since inception in return for equity. The line item appears on the balance sheet. See More.
As you can see, ARMs can have complex implications. Thus, as is the case with any loan, borrowers must be sure to read and understand the lender's documentation and contemplate the implications of changes in margins. Borrowers should be sure th See More.
The adjusted balance method determines the finance charges on an account once all credits and debits for the accounting period have been posted. See More.
Adjusted basis refers to the increase or decrease in an asset's value due to depreciation or capital enhancements. See More.
Adjusted cost base (ACB) is an income tax term that refers to an adjustment in an asset's book value resulting from the cost of improvements, payouts, and similar improvements or dispositions. See More.
Adjusted gross income (AGI) is the figure used by the Internal Revenue Service to determine a taxpayer's eligibility for certain tax benefits. See More.
Adjusted present value (APV) refers to the net present value (NPV) or investment adjusted for the interest and tax advantages of leveraging debt provided that equity is the only source of financing. See More.
Advance refunding occurs when a bond issuer, usually a municipality, invests the proceeds from the sale of new bonds in U.S. Treasurys with the intent of using the Treasurys to pay off the old bonds. See More.
An adverse opinion refers to the conclusion by an auditor that a company's financial statements inaccurately characterize the company's financial standing. See More.
Adverse selection refers to an insurance company's coverage of life insurance applicants whose risk as policyholders, due to their way of life, is significantly higher than the company perceives. See More.
In the finance world, an advisor (also spelled adviser) is an educated investment professional who helps people and businesses set and meet long-term financial goals. See More.
An affirmative obligation is a responsibility incumbent upon New York Stock Exchange (NYSE) specialists to ensure that a market for a stock still exists in the absence of sufficient supply or demand. See More.
The Affordable Care Act (ACA), which is known formally as the Patient Protection and Affordable Care Act (PPACA) and is also known as "Obamacare" and even the more generic "health care reform," is a bill signed into law on March 23, 2010, by Presiden See More.
After hours trading is the trading that occurs on electronic market exchanges after regular stock market trading hours have ended. See More.
After market trading occurs on an electronic market exchange after regular trading hours have ended. See More.
After the bell is a phrase referring to the end of an exchange's daily trading session. See More.
After-tax operating income (ATOI) is a company's operating income after taxes. ATOI is very similar to net operating profit after tax (NOPAT) See More.
After-tax profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total revenue. See More.
Agency costs usually refers to the conflicts between shareholders and their company's managers. A shareholder wants the manager to make decisions which will increase the share value. Managers, instead, would prefer to expand the business and incr See More.
Aggressive accounting refers to an accounting department's deliberate and purposeful tampering with its company's financials in order to outwardly characterize its revenues as higher than they truly are. See More.
An aggressive growth fund is a mutual fund which invests exclusively in high-risk/high-return stocks in an attempt to benefit from the potentially high returns on start-up companies and IPOs. See More.
An aggressive investment strategy emphasizes a substantially higher portfolio allocation of high-return equity over debt in order to generate high returns through exposure to high risk. See More.
An air pocket stock is one that experiences an abrupt and severe price decline. See More.
Alan Greenspan was the chairman of the Federal Reserve Board of Governors from 1987 to 2006. See More.
Alimony is a series of payments made to an ex-spouse or separated spouse according to a divorce decree or separation agreement. See More.
AON trades prevent investors from having orders partially filled. This is why they are particularly useful for thinly traded securities. However, AON orders (for both buyers and sellers) have the disadvantage of being lower in priority than ord See More.
An all weather fund is a mutual fund that performs well regardless of market conditions. See More.
An allowance for bad debt is essentially a reduction in a bank's accounts receivable. The allowance for bad debt equals the amount of the banks loans that it does not expect to collect. See More.
An allowance for doubtful accounts (ADA) is a reduction in a company's accounts receivable. The ADA equals the amount of those receivables that the company's management does not expect to actually collect. See More.
The fundamental quandary for investors of how get the highest return possible for the least amount of risk can be measured by alpha. It is a measurable way to determine whether a manager's skill has added value to a fund on a risk-adjusted bas See More.
An alternative asset is an item that has intrinsic value, but is not traditionally considered a financial asset. See More.
The alternative minimum tax (AMT) is income tax owed using a parallel tax code designed to ensure that every taxpayer, particularly rich ones and corporations, pay at least some income tax each year. See More.
An alternative order is a group of limit orders linked together within a brokerage account. If one order is executed, all other linked orders are automatically canceled. See More.
The Altman Z-Score (named after Edward Altman, the New York University professor who devised it) is a statistical tool used to measure the likelihood that a company will go bankrupt.Though Altman devised the Z-Score in the 1960s, the notion of t See More.
Altman's Z-score is a financial statistic that is used to measure the probability of bankruptcy. See More.
It is important to note that the taxpayer may also need to revise his or her state tax return after revising a federal return. Additionally, the IRS typically catches simple math errors while processing the return and may contact a taxpayer if a r See More.
The American Association of Retired Persons (AARP) is a nonprofit organization that advocates and promotes the well-being of Americans 50 years of age or older. See More.
An American Depositary Receipt (ADR) is a certificate that represents shares of a foreign stock owned and issued by a U.S. bank. The foreign shares are usually held in custody overseas, but the certificates trade in the U.S. Through this system, a la See More.
The American National Standards Institute (ANSI) is a private, non-profit organization that oversees the development and enforcement of standards for products, services and personnel in both the United States and around the world. See More.
The American Opportunity Tax Credit (formerly known as the Hope Tax Credit) is a tax credit available to college students or their parents to help pay for college expenses. See More.
An American option is a put option or call option that can be exercised at any time on or before its expiration date. See More.
The American Rule, in law, is a rule by which each party pays its legal fees resulting from litigation. This contrasts with the English Rule, which is the global norm, where the losing party pays the legal fees of the winning party. See More.
The American Stock Exchange (AMEX) is a stock and options exchange in New York. See More.
The AMEX Biotech Index is the benchmark index for the Biotechnology industry. This index was started on October 18, 1991 with a value of 200. The index broke below 100 several times prior to 1999 and then peaked during 2000 when it briefly reached 80 See More.
Amortization is an accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time. See More.
An amortization schedule is a complete table of periodic loan payments over the term of a loan. It shows the amount of principal and the amount of interest that make up each payment. See More.
An analyst gathers and interprets data about securities, companies, corporate strategies, economies or financial markets. Analysts are sometimes called financial analysts, securities analysts, equity analysts or investment analysts (although there is See More.
An analyst expectation is typically a prediction of a company's quarterly or annual earnings per share. See More.
An angel investor is a person who invests in highly risky companies, typically before those companies have any revenue or profits. Usually these companies are start-ups and/or small businesses that typically have little or no access to capital market See More.
Same as the effective annual interest rate, the annual equivalent (AER) rate is the rate of interest an investor earns in a year after accounting for the effects of compounding. The formula for AER is: (1 + i/n)n - 1 Where: i = the stated annual i See More.
An annual general meeting (AGM) is an SEC-mandated gathering of a public company's senior management and shareholders for the purpose of exchanging important information. See More.
Annual Percentage Rate (APR) is the interest rate that reflects all the costs of the loan during a one year time period. See More.
Annual percentage yield (APY) is the rate of interest an investor earns in a year after accounting for the effects of compounding. APY is not the same as annual percentage rate (APR). The formula for APY is: APY = (1 + (i / n))n - 1 Where: i = th See More.
An annual report is an audited corporate document that details the business activity and financial status of a publicly-held company over the previous year. See More.
An annuitant is the person whose age and life expectancy affect the size of the monthly payments to the owner of an annuity. See More.
Annuitization is the act of triggering a series of payments, usually from an annuity. See More.
To annuitize is to choose to receive a series of payments, usually from an annuity. See More.
An annuity is a financial contract written by an insurance company that provides for a series of guaranteed payments, either for a specific period of time or for the lifetime of one or more individuals. See More.
An anti-dilution provision is a clause in an option, security, or merger agreement that gives the investor the right to maintain his or her percentage ownership of a company by buying a proportionate number of shares of any future issue of the securi See More.
An anti-greenmail provision is a clause in a corporation's charter that deters the corporation's board from conducting a stock buyback. See More.
The anti-Martingale system is an investment strategy that doubles the position sizes of securities that experience gains. By using this method, investors will overweight their winning investments in hopes that they continue to rise. See More.
An anti-takeover measure is a precautionary strategy used by companies to avoid being bought by another company. See More.
An anti-takeover statute is a law designed to deter companies from launching hostile takeovers of other companies. See More.
Antitrust refers to federal laws disallowing companies from monopolizing markets, engaging in price discrimination or price fixing, or otherwise restraining free trade. See More.
An any-and-all bid is an offer to acquire a company whereby the potential buyer offers to purchase any and all of the shareholders' shares at a specific price by a certain deadline. See More.
An appraisal is an estimate of the market value of an item by a certified professional. See More.
Arbitrage is the process of exploiting differences in the price of an asset by simultaneously buying and selling it. In the process the arbitrageur pockets a risk-free return. Differences in prices usually occur because of imperfect dissemination of See More.
Arbitrage pricing theory (APT) is a well-known method of estimating the price of an asset. The theory assumes an asset's return is dependent on various macroeconomic, market and security-specific factors. See More.
An arbitrage trading program is a software program that attempts to take advantage of very small price differences between securities, such as index futures and the underlying stocks represented. The program automatically scans for opportunities and See More.
An arbitrageur is a person who exploits the differences in the price of a given security by simultaneously purchasing and selling that security. See More.
Arbitration is a process in which impartial parties (arbitrators) help disagreeing parties resolve a dispute. Contracts, particularly financial ones, with disputes often go to arbitration. See More.
The arithmetic mean average is the average of a series of numbers. See More.
The Arms Index (Trin) uses the ratio of advancing issues to declining issues to signal when the market is deeply overbought or oversold. See More.
It is important to note the difference in the business laws of each state before considering opening a business in a certain domicile. Most business owners consult attorneys before filing their articles of incorporation. See More.
The ascending triangle is marked by two significant technical features. At its top, there is a line of resistance. This is a supply line, or a price at which sellers step into the market and unload their shares. The second aspect of the ascending tri See More.
The ask price is the lowest price a prospective seller is willing to accept in exchange for a specific security. See More.
Ask size is the number of shares a seller is selling at a quoted ask price. The ask size is the opposite of the bid size, which is the number of shares a buyer is willing to buy at the quoted bid price. See More.
Although assessed value is a term used in conversations about property taxes, it is also an important factor in municipal bond issues. Because many municipalities receive a large portion of their local revenue from property taxes, See More.
An asset is an economic resource that a) can be owned, and b) is expected to provide future economic benefits. See More.
Similar to diversification, asset allocation refers to the portioning of a portfolio among various types of investment asset classes so as to maximize return for a given level of risk. See More.
An asset class is a group of investments that have similar characteristics, behave similarly and are subject to similar market forces, laws and regulations. See More.
Asset management has two general definitions, one relating to advisory services and the other relating to corporate finance. In the first instance, an advisor or financial services company provides asset management by coordinating and overseeing a See More.
The asset turnover ratio is a measure of how efficiently a company's assets generate revenue. It measures the number of dollars of revenue generated by one dollar of the company's assets. See More.
Asset-backed securities have several important benefits. Primarily, they give lenders a way to obtain cash for more lending, and they offer investors a way to invest in a diversified group of income-producing assets. The ABS market is not always a See More.
An asset-or-nothing call option either pays the value equal to one unit of the underlying asset if that asset is above the strike price or pays nothing if the asset is below the strike price at expiration. See More.
An asset-or-nothing put option is an option with two possible outcomes: a fixed amount if the market value is below the strike price and no payment at all if it is higher than the strike price. See More.
Assets under management (AUM) refers to the total market value of investments managed by a mutual fund, money management firm, hedge fund, portfolio manager, or other financial services company. See More.
An assignable contract allows a contract holder to assign his or her rights and obligations under the contract to a third party. The most common assignable contracts are futures contracts. See More.
An assumed interest rate is used to calculate an annuity's periodic income payments. See More.
An asymmetric digital subscriber line (ADSL) is a modem technology that enables information and video to be transmitted over regular telephone lines. See More.
Although the existence of asymmetric information is debated, the presumption of the existence of asymmetric information in the markets is often why some investors simply invest in indexes and mutual funds, which simply diversify the investor's See More.
In the bond world, at par means "equal to face value." Face value, also known as par value, is the amount the issuer promises to pay the bondholder when the bond matures. See More.
An auction market is a market in which buyers indicate the highest price they are willing to pay and sellers indicate the lowest price they are willing to accept. A trade occurs when the buyer and seller agree on a price. See More.
In the tax world, an audit refers to the review of a taxpayer's tax return for accuracy. In the accounting world, an audit is the examination and verification of a company's financial statements and records, and in the United States, See More.
An audit trail refers to the complete record of events that occurred in the execution of a transaction. See More.
In the accounting world, an auditor is a professional who examines and verifies a company's financial statements and records and in the United States examines a company's compliance with Generally Accepted Accounting Principles (GAAP). In con See More.
An auditor's opinion is a written statement describing an auditor's independent, unbiased and qualified evaluation of the accuracy and completeness of a company's financial statements and practices, as well as an evaluation of a company's compliance See More.
An auditor's report is a statement included in a company's annual financial report that certifies the validity of a company's financial statements according to an outside auditor. See More.
An auto loan allows someone to borrow money to purchase a car or truck. Auto loans are usually simple-interest loans that are to be paid back over a period of typically three or five years. A car is often the second-largest purchase someone will m See More.
The Automated Bond System (ABS) is a computerized platform that tracks the prices for inactive bonds on the New York Stock Exchange (NYSE). See More.
ACH or Automated Clearing House is a fund transfer system operated by NACHA, the National Automated Clearing House Association. Launched in 1974, ACH is used for a wide range of financial transactions. You are likely familiar with ACH as a See More.
An automatic investment plan (AIP) is a strategy whereby an investor can arrange for funds to transfer into an investment account automatically on a regular basis. See More.
The average annual growth rate (AAGR) is the arithmetic mean of a series of growth rates. See More.
The average annual return (AAR) is the arithmetic mean of a series of rates of return. See More.
Average balance is either the simple or the weighted average balance of a financial account during some period of time. See More.
The average daily balance method is a way of calculating interest by considering the balance owed or invested at the end of each day of the period rather than the balance owed or invested at the end of the week, month or year. See More.
Average down (or averaging down) refers to the purchase of additional units of a stock already held by an investor after the price has dropped. Averaging down results in a decrease of the average price at which the investor purchased the stock. See More.
Average Revenue Per User (ARPU) is a measurement of profit in terms of customers. See More.