Glossary stock market pdf

Glossary stock market pdf

Posted: DenIT Date: 25.05.2017

Welcome to Firstrade's stock market glossary. Do all the research you want. Use this glossary to look up any financial term. Abandon To not to exercise or sell an option. An investor usually chooses abandonment when the option is out-of-the-money on the expiration date.

Above Par The current price above face value. This generally occurs when the coupon paid on the bond is higher than the market interest rate for similar securities.

Accounts Payable The company's current liability owned to creditors for goods and services obtained during the normal course of business. Accounts Receivable Current assets owed to the company for services or goods sold on credit. Accreted Interest The difference between par value of a zero coupon security and its original purchase price. Also known as original issue discount. Accrual Bond A bond which is sold at a deep discount to its face value, and pays no coupons. Accrual bonds tend to be illiquid, and very sensitive to changes in interest rates.

Although there is no actual cash flow of interest, the imputed interest on an accrual bond is taxable as it accrues under U.

Stock Market Terms and Definitions You Should Know

Accrued Interest The amount of interest the buyer owes the seller on transactions of fixed income securities, such as most bonds and notes. Accumulation Bond A bond sold at a price below its face value and can be redeemed at its face value when matured. Also called discount bond. Acquisition The act of acquiring control of another corporation, by either stock purchase or exchange. This can be achieved either through hostile or friendly means. Active Management The constant supervision of a portfolio's holdings to maximize gains.

A Beginner’s Guide To Stock Trading: 50 Terms That You Should Know | Business Insider India

Active management by fund managers is one of the benefits of a mutual fund. Address The headquarters address of the company as provided in the latest SEC filings. Advanced Option Complex option strategies. Adviser The firm primarily responsible for a fund's day-to-day operation. After-hours Trading The buying and selling securities when the major markets are closed.

After-hours trading was once a privilege of institutional investors, individual investors can now participate. Stocks are traded after hours on ECNs, which match buyers and seller with a computer system in order to execute trades. Aftermarket Markets in which an investor purchases a security from other investors rather than the issuer, subsequent to the original issuance in the primary market.

Also called secondary market. Agency Security The bills, notes, and bonds issued by agencies of the federal government. Aggressive Growth Funds Mutual funds that focus on small-company stocks, the fund's high level of risk is justified by potential for accelerated earnings. All-or-None AON The type of order instructing the execution of the entire order quantity at the stated price or betteror none of it. This prevents partially filled orders.

The difference between All-or-None and Fill-or-Kill is that the AON order is left open if the entire order quantity cannot be filled, whereas the FOK order will be cancelled. Alpha The measure of a fund's risk-adjusted return. Alpha is derived by compares the fund's actual returns and the expected returns as determined by its level of risk beta.

A positive alpha indicates the fund has performed better than expected, while a negative alpha indicates the fund has underperformed. American Depositary Receipt ADR The negotiable certificates held in an U. American Depositary Share ADS The shares issued under an ADR agreement, which is actually traded. American Stock Exchange AMEX A major stocks and options exchange located at 86 Trinity Glossary stock market pdf, New York.

American-Style Option An option contract that can be exercised at any time between the date of purchase to expiration. Most exchange-traded options are American-style. Amortization The gradual elimination of a liability, in regular payments statistical arbitrage trading strategies a specified period of time.

Such payments must be sufficient to cover both principal and interest. Annual Percentage Rate APR The total cost of a loan per year, including both interest charges and most or all fees. Annual Percentage Yield APY The total income an investment earns per year.

The APY generally represents the total earnings of a cash indian stocks share market sensex such as a money market fund or savings account, or be part of the returns from stocks and bonds, which secrets of forex trading also experience capital growth. Annual Report The audited report of a corporation's year-end financial results and operations filed annually with the SEC.

The report contains information on the company's financial condition, legal liabilities and future plans. Shareholders may obtain a free copy of the Annual Report from the corporation. Annual Report Mutual Fund A report that gives an overview of a fund's performance and operations. SEC requires funds to distribute the report to shareholders at least semiannually. Annualized Returns The return on an investment over a specified number of years, calculated as what an investor would have received each year if the cumulative return were distributed evenly over each year within the specified time period.

Appreciation Funds Types of funds that invest in stocks whose value is expected to increase significantly. Arbitrage Profiting from differences in the price of a security that is traded on multiple markets. Arms Index - TRading INdex TRIN A market indicator used in technical analysis, calculated as follows: A value of less than 1 is considered bullish, greater than 1 bearish.

Arrearage The overdue interest or dividends of a bond or preferred share. Asian Funds A fund that targets primarily the stocks of companies located in Asia. These funds appeal to investors who are bullish on the potential of Asian companies, and want to capitalize on that growth. Asian Option An option whose payoff depends on the average value of an underlying security over a specified period. Ask Asked Price The lowest round lot price at which a broker will sell a security.

Ask Price Mutual Funds Also known as the offering price, the ask price is the price at which a mutual fund's shares can be bought. The ask price is calculated by adding a fund's current net asset value per share to its sales charges, if any. Assignment The receipt of an exercise notice by an options writer that requires him to sell in the case of a call or purchase in the case of a put the underlying security at the specified strike price.

Assessment Bond Municipal bond used for specific projects, to be repaid using tax proceeds collected from those who benefit from the project.

Also called special-purpose bond. Asset Glossary stock market pdf Funds Funds that seek to provide an optimal mix of stocks, bonds and cash at any given time.

Glossary of Stock Market Terms & Definitions - ucujaluxu.web.fc2.com

At-the-Money An option is at-the-money if the strike como usar el macd en forex of the option is equal to the market price of the underlying security.

Auction Treasury The issuance of new Treasury bills, notes, and bonds at stated intervals by the Federal Reserve. Auction Market A market where buyers and sellers enter bids and offers simultaneously, such as the New York Stock Exchange. Automatic Investment A shareholder service that allows the periodic transfer of a preset amount from the shareholder's bank account his or her mutual fund account.

Average Also known as an index, it is the mathematical calculation that indicates the value of a group of securities. Average Life An estimate of the time to maturity for a pool of mortgage-backed securities. Average Maturity The average time to maturity of securities held by a mutual fund. Changes in interest rates have greater impact on funds with a longer average life.

Average Volume Average volume is calculated by dividing the total volume for the previous three months by the number of trading days in the period. Compare this number to the daily volume to see if interest in the security has increased or decreased.

Away From the Market On a limit order, a buy order which is lower than the current market price, or a sell order which is higher than the current market price. These orders are held to be executed later, unless they are of the fill-or-kill type. QUICK LINKS Log In Customer Service Pricing Promotions Find a Form Mobile Apps Tax Center Cash Management Service Feedback Site Map. Brokerage Products and Services offered by Firstrade Securities, Inc.

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glossary stock market pdf

Please review the Characteristics and Risks of Standardized Options brochure before you begin trading options. Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund or ETF carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies.

A mutual fund or ETF prospectus contains this and other information and can be obtained by emailing service firstrade. Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. The Margin Disclosure Statement and Agreement PDF is available for download, and contains information on our lending policies, interest charges, and the risks associated with margin accounts.

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Any specific securities, or types of securities, used as examples are for demonstration purposes only. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security. This is not an offer or solicitation in any jurisdiction where Firstrade is not authorized to conduct securities transaction. System response and access times may vary due to market conditions, system performance, and other factors.

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