| A
|
| Accounts
Payable: The amount of money owed to
suppliers and vendors. |
| Accounts
Receivable: The amount of money due
a business from its customers. |
| Accrued
Interest: Interest that is payable
to you but you haven't received yet.
|
| Accumulated
Dividends: Within a mutual fund,
dividends from companies that haven't
yet been distributed to the fund
shareholders. |
| Adjusted Gross
Income: All the money earned in the
year from all sources, "adjusted" by
various tax credits that are deducted
off the top of your income to reduce
what is taxable. |
| Affidavit:
A written statement certified by a
notary public as to its authenticity
|
| After Hours
Trading: Some brokers offer Nasdaq
trading from 4-8:00 pm EST and from
7-9:30 am EST. |
| Allocation of
Investments: Also called asset
allocation, this is placing a set amount
or percent of your money in one type of
investment such as stocks, another part
in maybe bonds, real estate or
treasuries. |
| American
Depository Receipts (ADR):
Securities representing a fixed number
of shares of stock of a foreign
corporation, and traded like regular
common stock on U.S stock exchanges.
|
| Amortization,
Amortize: The payoff of a debt with
regular payments, with part going to
interest and the remainder of the
payment to the principal. |
| Annual Report:
A yearly report issued by corporations
and mutual funds that detail their
financial condition. |
| Annualized:
Converting a monthly or daily figure to
an annual basis. |
| Annuity: A
plan that pays you a minimum amount,
either for a given number of years, or a
fixed amount for the rest of your life.
There are immediate annuities that begin
now, or delayed to begin at retirement.
Variable annuities pay an amount that is
affected by the success of the
underlying investments. |
| Arbitrage:
Usually practiced by institutional
investors, buying an investment (stock,
options, international currency,
commodities) and selling at a higher
price at exactly the same time. This is
done when they find a "skew" in prices
in different markets. |
| Arbitration:
A method where conflict between two or
more parties is resolved by impartial
persons, arbitrators, who are
knowledgeable in the areas in
controversy. Also called mediation.
|
| Ask Price:
The current price you may pay for a
stock or option. The price that at which
a market maker is selling a Nasdaq
stock.
|
| Asset:
Money, inventory, accounts receivable,
plants and equipment, real estate, and
intellectual things of worth such as
patents. Anything that has value. |
| Assumption of
Risk: The situation that arises when
an individual agrees to perform certain
duties knowing that they could be
potentially physically dangerous or of
high financial risk. |
|
Attorney-in-fact: subordination
clause that permits the landlord to
submit, on the tenant's behalf, without
further approval, a certificate of
subordination to a lender, trustee, or
financing institution.
|
| Authorized
Issue: The maximum number of shares
that a corporation may issue as declared
in its articles of incorporation. |
| Audit:
When a CPA or accountancy firm declares
the truthfulness and accuracy of a
company's financial statements. |
| Average Annual
Return: The amount of interest
earned, or the percent amount you would
have had to have earned on your
investment to get to where your
investment is worth today. This is a
compounded figure, so a 100% return in 4
years is not 25% per year but an 18.9%
average annual return. |
