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| 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. |
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