INVESTMENT COLLEGE >INVESTMENT GLOSSARIES

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Accounts payable:Money that a company needs to pay back for any goods or services purchased on credit.

Accounts receivable:Money that a company is going to collect for any goods or services sold on credit.

American depository receipts (ADRs):Securities representing claims to shares of foreign stocks traded within the US.

American option:An option that can be exercised on or before its expiration date.

Annual percentage rate (APR):The interest rate charged per period multiplied by the number of periods per year.

Annual report:Yearly financial report to shareholders.

Arbitrage:Transactions designed to make a sure profit from inconsistent prices.

Asked price:Price that someone is willing to accept for the sale of a security or an asset.

Asset allocation:Putting investment money into various instruments and markets.

Assets:Everything a legal entity or individual possesses or is owed.

At-the-money:The strike price of an option equal to the current price of the underlying instrument.

Auction market:A market where all traders gather to buy or sell an asset.

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