Financial Theory Terms

  1. "Just Say No" Defense

  2. 80-20 Rule

  3. A Priori Probability

  4. ABCD Counties

  5. Above Full-Employment Equilibrium

  6. Above Par

  7. Absolute Auction

  8. Absolute Frequency

  9. Acceleration Principle

  10. Acceptance Market

  11. Acceptance Sampling

  12. Accommodative Monetary Policy

  13. Accounting Rate of Return - ARR

  14. Acquisition Cost

  15. Active Money

  16. Active Risk

  17. Active Tranche

  18. Actuarial Basis Of Accounting

  19. Ad Infinitum

  20. Adam Smith

  21. Adaptive Expectations Hypothesis

  22. Adaptive Market Hypothesis

  23. Addition Rule For Probabilities

  24. Adjusted Present Value - APV

  25. Advocacy Advertising

  26. Agency Theory

  27. Alfred Nobel

  28. Algebraic Method

  29. Algorithmic Trading

  30. All Cash, All Stock Offer

  31. Allocational Efficiency

  32. Alpha

  33. Alpha Risk

  34. Alternative Investment

  35. Altiplano Option

  36. Altman Z-Score

  37. Analysis Of Variance - ANOVA

  38. Analysis Of Variances - ANOVA

  39. Andrei Shleifer

  40. Animal Spirits

  41. Annapurna Option

  42. Annual Basis

  43. Annual Return

  44. Annuity

  45. Annuity Due

  46. Anomaly

  47. Anti-Dumping Duty

  48. Anti-Fragility

  49. Anti-Greenmail Provision

  50. Anti-Martingale System

  51. Anti-Takeover Measure

  52. Anti-Takeover Statute

  53. Antidilutive

  54. APICS Business Outlook Index

  55. Appraisal Ratio

  56. Appropriation

  57. Arbitrage Pricing Theory - APT

  58. Arbitrage-Free Valuation

  59. Arbitrageur

  60. Arc Elasticity

  61. Arm's Length Market

  62. Arrow's Impossibility Theorem

  63. Articles Of Association

  64. Assessable Security

  65. Asset Allocation

  66. Asset Class Breakdown

  67. Asset Mix

  68. Asset Rationalization

  69. Asset Specificity

  70. Asset Stripper

  71. Asset/Liability Management

  72. Asymmetric Volatility Phenomenon - AVP

  73. At A Discount

  74. At A Premium

  75. At Limit

  76. At Par

  77. Atlantic Spread

  78. Atlas Options

  79. ATS (Austrian Schilling)

  80. Attribute Sampling

  81. Auction Market Preferred Stock - AMPS

  82. Auction Rate Bond - ARB

  83. Austrian School

  84. Authorized Share Capital

  85. Autocorrelation

  86. Automated Valuation Model - AVM

  87. Automatic Stabilizer

  88. Autonomous Expenditure

  89. Available Credit

  90. Average Down

  91. Average Margin Per User - AMPU

  92. Average Propensity To Consume

  93. Average Propensity To Save

  94. Backward Induction

  95. Bad Debt Recovery

  96. Bailout

  97. Bandwagon Effect

  98. Bank Card

  99. Bank Discount Basis

  100. Barone-Adesi And Whaley Model

Hot Definitions
  1. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  2. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  3. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  4. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  6. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
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