Education Glossary

Showing Terms 1 - 20 out of 533 found.

All Terms

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Term Definition
90/10 Strategy

An investment strategy where 90% of the trader's investment capital is in interest-bearing, low risk financial instruments and the remaining 10% is placed in higher risk investments.

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.

Above Par

In the Bond markets, this refers to the current price above face value. This happens when the coupon paid on the bond is higher than the market interest rate for securities that are similar. In this situation, the investor will incur a capital loss upon Bond maturity.

Above the Market

Refers to a buy or sell order set at a specific price higher than the current market price of the security. Examples include: stop order (buy), limit order (sell), or stop-limit (buy).

Absolute Return

An investment strategy designed to provide positive investment performance regardless of the market environment. 

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.

Accrued Interest

Interest on a bond or loan that has accumulated since the investment's inception, or since the previous coupon payment, if applicable.

Accumulating Shares

Shares of common stock provided to current shareholders of a company that is in place of, or in addition to a dividend distribution.

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.

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.

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. 

Active Management

The constant supervision of a portfolio's holdings by experienced financial professionals to maximize gains. This is a popular benefit of investing in mutual funds where Fund Managers monitor performance and make adjustments to strategies when needed.

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.

Actuary

An individual who specializes in statistical analysis to measure and manage risk. 

Adding to a Loser

Increasing an active position in a given market although the price direction is opposite of the trader's wishes.

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.

Advance/Decline Index

A technical indicator that conveys the total difference between the number of advancing and declining security prices.

Advancing Issues

A quantity of securities that have increased in price during a specific time frame.

Advancing Volume

Represents the trading volume for all Advancing Issues on an Exchange or Index for a given day.

After Hours Market Close

The last price transaction of a security that is traded during the after-hours market.

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