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. Family Limited Partnership - FLP

    A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings.
  2. Yield Burning

    The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice, referred to as "burning the yield," is done after the bond is placed in escrow for an investor who is awaiting repayment.
  3. Marginal Analysis

    An examination of the additional benefits of an activity compared to the additional costs of that activity. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions. Marginal analysis is also widely used in microeconomics when analyzing how a complex system is affected by marginal manipulation of its comprising variables.
  4. Treasury Inflation Protected Securities - TIPS

    A treasury security that is indexed to inflation in order to protect investors from the negative effects of inflation. TIPS are considered an extremely low-risk investment since they are backed by the U.S. government and since their par value rises with inflation, as measured by the Consumer Price Index, while their interest rate remains fixed.
  5. Gilt-Edged Switching

    The selling and repurchasing of certain high-grade stocks or bonds to capture profits. Gilt-edged switching involves gilt-edged security, which can be high-grade stock or bond issued by a financially stable company such as the Blue Chip companies or by certain governments.
  6. Master Limited Partnership - MLP

    A type of limited partnership that is publicly traded. There are two types of partners in this type of partnership: The limited partner is the person or group that provides the capital to the MLP and receives periodic income distributions from the MLP's cash flow, whereas the general partner is the party responsible for managing the MLP's affairs and receives compensation that is linked to the performance of the venture.
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