Retrieve Password


Glossary of Terms

advance/decline line

the number of declining issues (shares with a lower close than the previous day) less the number of advancing issues (shares with a higher close than the previous day). the difference is added to (subtracted from if negative) a running sum. failure of this line to confirm a new high is a sign of weakness. failure of this line to confirm a new low is a sign of strength.

american-style option

an option contract that may be exercised at any time between the date of purchase and the expiration date.

arbitrage

the simultaneous purchase and sale of identical or equivalent financial instruments or commodity futures in order to benefit from a discrepancy in their price relationship.

ask

the lowest price that an investor or dealer is prepared to sell a given security (the same as offer).

asset allocation

the investment mix of a portfolio among different asset classes such as equities, fixed income, cash and property. the investment mix is reviewed periodically to confirm the portfolio meets the changing circumstances of the investor or objectives of the fund manager.

assets

assets are the resources owned by a company, fund or individual. assets are the actual and potential future benefits that exist and have the potential to contribute directly or indirectly to future cash flows.

at par

a security which is selling at a price equal to its face value.

at-the-close

an instruction to a broker to execute an order at the price obtainable ‘at the close’ of the market on the day it is entered.

at-the-market

an instruction to a broker to execute an order at the best price obtainable at the moment the order is received on the trading floor. synonymous with market order.

at-the-money

an option is at-the-money if the strike price of the option is equal (or virtually equal) to the market price of the underlying security.

at-the-opening

an instruction to a broker to execute an order at the best price obtainable as soon as the market opens; no actual price limit is set.

averaging up or down

the practice of purchasing the same security at various price levels, thereby arriving at a higher or lower average cost.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z