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Glossary

After-Hours Trading

The trading of securities after the major markets have closed. Trading is conducted on Electronic Communication Networks (ECNs) which pair buyers and sellers for trade execution.

Agency Security

Federal government agencies issuance of bonds, bills and notes.

Aggressive Growth Funds

Mutual funds seeking to acheive accelerated earnings on small-company stocks with higher levels of risk.

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.

All-Or-None

Type of order stipulating execution of the entire quantity at specified price (or better), or none at all. It is employed to prevent partial filled orders.

Alpha

Often referred to as the "active" return on investment, it is the difference between a fund’s expected performance and its actual returns.

Alternative Investments

Financial instruments other than cash, equities or bonds. Collectively, they are hedge funds, managed futures,  real estate or commodities investments.

American Stock Exchang (AMEX)

The American Stock Exchange (AMEX) is the third-largest stock exchange by trading volume in the United States. In 2009 it was renamed the NYSE AMEX Equities Exchange when it was acquired by the NYSE in the year previous. The Exchange is located in New York City.