Education Glossary
Definitions Starting with "a"
| Term | Definition |
|---|---|
| Accrual Bond | A bond sold at a substantial discount on its face value and pays no coupons. Although there is no actual cash flow , the presumptive interest on an accrual bond is taxable under U.S. tax laws. |
| At-The-Market | A broker's instruction (order) to buy or sell at the prevalent bid or ask at the time the order is processed. |
| At-Or-Better | A broker's instruction (order) to fill the order at a specific price or above. |
| Annual Report | A corporation's year-end financial statistics and operations summary filed annually with the Securities and Exchange Commission. The report details the company's financial condition, liabilities and forward-thinking plans. |
| Annuity | A financial product that is designed to accept and grow funds from an individual and then, upon pay out, a schedule of payments to the individual at a later time. |
| Accumulation/Distribution | A leading indicator that tracks the relationship between price and volume. Following a stock's accumulations or distributions may signal significant price moves. |
| Auction Market | A market in which buyers specify the highest price they will pay and sellers indicate the lowest price they will accept. A transaction occurs when the buyer and seller reach an agreement on price. The New York Stock Exchange (NYSE) operates as an Auction Market. |
| Arms Index | A market sentiment indicator designed by Richard Arms that evaluates Advance/Decline data and trading volume. |
| Aggregate Exercise Price | A put or call option's strike price multiplied by its contract size. |
| Advancing Issues | A quantity of securities that have increased in price during a specific time frame. |
| Assessment Bond | A special Municipal bond used primarily for development projects, where the interest due to the lender is collected through taxes levied on the community benefiting from the development project. |
| Active Trading | A speculative trading strategy that buys and sells securities to take advantage of short-term movements in price on high demand markets such as stocks and currencies, typically within one day. |
| Adjusted Closing Price | A stock's closing price on any specific day of trading that has been changed to include distribution and company activity that took place at any time prior to the next day's open. |
| Average Directional Index | A techncial indicator designed by J. Welles Wilder that measures the strength or weakness of a trend. |
| Amplitude | A technical analysis term that refers to the difference in price from the midpoint of a trench to the midpoint of a peak of a security. |
| Accumulative Swing Index | A technical indicator designed by J. Welles Wilder that quantifies the breakout potential of a given market. The current Open, High, Low and Close are compared to the prices of a previous period, with results plotted on a scale of 0 to +100 and 0 to -100. |
| Advance/Decline Index | A technical indicator that conveys the total difference between the number of advancing and declining security prices. |
| Algorithmic Trading | A technology driven system of trading which facilitates transaction decision making using advanced mathematical tools. It is also often referred to as algo trading or black box trading. |
| Abandon | A trader's decision to not sell or excercise an option. This typically occurs when an option has reached its time expiration or has reached "out-of-the-money' status. |
| Accumulation Bond | Also known as a "Discount Bond", this is a bond sold at a price below its face value and then redeemed at its face value at maturity. |
