| Term | Definition |
|---|---|
| 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. |
| Balance of payments |
The difference between the demand for and supply of a country's currency on the foreign exchange market. |
| Balance of payments accounts |
A statement of a country's transactions with others countries. |
| Balance of trade |
The difference between exports and imports of goods. |