Education Glossary

Showing Terms 1 - 20 out of 54 found.
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Definitions Starting with "a"

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Term Definition
Away From the Market

Describes the occurrence of a bid on a limit order being lower, or an offer price being higher than the current market price, for a specific security.

Average True Range

Designed by J. Welles Wilder, this is a technical indicator that measures volatility in Commodities markets.

Average Directional Index

A techncial indicator designed by J. Welles Wilder that measures the strength or weakness of a trend.

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.

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.

At The Money

Refers to the strike price of an option being equal to the market price of the underlying asset.

Assymetrical Distribution

This is imbalance of variable values that are occurring at irregular frequencies where the mode, mean and media are also at different points.

Asset Allocation Funds

Funds that seek to provide an optimal blend of stocks, bonds, and cash.

Asset Allocation

An investment strategy where an investor strives to balance risk versus reward by adjusting the percentage of the portfolio invested in a particular asset based upon the risk tolerance, goals and time frame of the investor.

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.

Ask

Ask is the price that a seller is willing to accept for a security. Also commonly referred to as the offer price.

Ascending Channel

Price data activity where high and low prices are trending upwards for a sustained period of time

Arrearage

Overdue dividends or interest for a preferred share of stock or bond.

Arms Index

A market sentiment indicator designed by Richard Arms that evaluates Advance/Decline data and trading volume.

Arithmetic Mean

The result of adding a sum of numbers then dividing by the number of elements in the group.

Arbitrage

The simultaneous buying and selling of a financial instrument in different markets to profit from differing prices for the same asset.

Appreciation Funds

Funds that invest in stocks where value is projected to increase substantially.

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.

Annualized Returns

An investment's return over a specific duration, represented somewhat as an average as it takes the cumulative return for the period and divides this evenly over each year for the period.

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