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Glossary of terms used on this site

There are 254 entries in this glossary.
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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.

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