Financial and Business Terms - from An to Ap
Thursday, April 30, 2009
- Analyst: Employee of a brokerage or fund management house who studies companies and makes buy-and-sell recommendations on their stocks. Most specialize in a specific industry.
- Announcement date: Date on which particular news concerning a given company is announced to the public. Used in event studies, which researchers use to evaluate the economic impact of events of interest.
- Annual fund operating expenses For investment companies, the management fee and "other expenses," including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial and accounting services. For 12b-1 funds, selling and marketing costs are included.
- Annual percentage rate (APR): The periodic rate times the number of periods in a year. For example, a 5% quarterly return has an APR of 20%.
- Annual percentage yield (APY): The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the affect of compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. For example, a 1% per month rate has an APY of 12.68%.
- Annual report: Yearly record of a publicly held company's financial condition. It includes a description of the firm's operations, its balance sheet and income statement. SEC rules require that it be distributed to all shareholders. A more detailed version is called a 10-K.
- Annualized gain If stock X appreciates 1.5% in one month, the annualized gain for that sock over a twelve month period is 12*1.5% = 18%. Compounded over the twelve month period, the gain is (1.015)^12 = 19.6%.
- Annualized holding period return: The annual rate of return that when compounded t times, would have given the same t-period holding return as actually occurred from period 1 to period t.
- Annuity: A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- Annuity due: An annuity with n payments, wherein the first payment is made at time t = 0 and the last payment is made at time t = n - 1.
- Annuity factor: Present value of $1 paid for each of t periods.
- Annuity in arrears: An annuity with a first payment on full period hence, rather than immediately.
- Anticipation: Arrangements whereby customers who pay before the final date may be entitled to deduct a normal rate of interest.
- Antidilutive effect: Result of a transaction that increases earnings per common share (e.g. by decreasing thenumber of shares outstanding).
- Appraisal ratio: The signal-to-noise ratio of an analyst's forecasts. The ratio of alpha to residual standard deviation.
- Appraisal rights: A right of shareholders in a merger to demand the payment of a fair price for their shares, as determined independently.
- Appropriation request: Formal request for funds for capital investment project.
- Arbitrage: The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist.
Labels: Financial and Business Terms / Dictionary
posted @ 3:13 PM,
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