Financial lexicon
The financial world has it own vocabulary.
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Click on the first letter of the word
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- Direct search
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- Accrued interest
- The amount the purchaser of a bond has to pay to the seller above the market price for the portion of the coupon that already has expired.
- Adjustment
- Adjustment of security prices so they may be validly compared, particularly in the wake of an operation involving the security (division of shares, payment of a dividend, …).
- Adjustment
- Sharp fall on the financial markets linked to a rapid increase.
- All or nothing order (AON)
- Limited price order whose execution is possible only if the quantity of securites is available on the market at the designated price. This kind of order is used to avoid partial executions in the case of illiquid securities.
- Amex (American Stock Exchange)
- Third largest stock exchange in the United States (after the New York Stock Exchange and Nasdaq) owing to its capitalisation and the number of companies listed. Amex is known for its medium-term securities and the option products featured there.
- Annual report
- A company is required to issue a report each year featuring the balance sheet, the profit and loss accounts and a description of the previous financial year.
- Arbitrage
- Risk-free operation allowing an investor to take advantage of a temporary market irregularity. Example: buying or selling securities on a given stock exchange, whilst taking the opposite action on another exchange, thereby taking advantage of the price or exchange rate differentials on the two markets.
- Ask
- Declared price at which a seller is willing to handover a security. (Also asking price)
- Assets
- Left-hand side of the balance sheet specifying the value of the resources owned by a company on the date when the accounts are approved. The assets are subdivided into two main groups: fixed assets and current assets.
- At the Money
- Situation where the underlying price for an option is equal at the strike price for the option.
- Auto sell
- This is an automatic sell order performed by Keytradebank for owners of options.
KeytradeBank does this to avoid the exercise of options. The auto-sell feature can be disabled.
