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Financial Terms beginning with A

A B Split
A B Trust
A Credit
A Note
A Priori Probability
An a priori probability is a probability that is derived purely by deductive reasoning. One way of deriving a priori probabilities is the principle of indifference, which has the character of saying that, if there are N mutually exclusive and exhaustive events and if they are equally likely, then the probability of a given event occurring is 1/N. Similarly the probability of one of a given collection of K events is K/N.
A Share
A Shares
A. Michael Spence
Andrew Michael Spence is an American economist and recipient of the 2001 Nobel Memorial Prize in Economic Sciences, along with George Akerlof and Joseph E. Stiglitz, for their work on the dynamics of information flows and market development.
A.M. Best
A.M. Best is a U.S.-based rating agency headquartered in Oldwick, New Jersey, that focuses on the insurance industry. Both the U.S. Securities and Exchange Commission and the National Association of Insurance Commissioners have designated the company as a Nationally Recognized Statistical Rating Organization in the United States.
AAAA Spot Contract
AARP, Inc., formerly the American Association of Retired Persons, is a United States-based interest group with a membership founded in 1958 by Ethel Percy Andrus, Ph.D., a retired educator from California, and Leonard Davis, later the founder of the Colonial Penn Group of insurance companies.
ABA Bank Index
ABC Agreement
ABCD Counties
ABX index
AC DC Option
ADR (Under Review)
APR Annual Percentage Rate
ARM (Under Review)
Abandon Rate
Abandoned Property
Abandonment And Salvage
Abandonment Clause
Abandonment Option
Abandonment Value
Abatement Costs
Abeyance Order
Abeyance is a state of expectancy in respect of property, titles or office, when the right to them is not vested in any one person, but awaits the appearance or determination of the true owner. In law, the term abeyance can only be applied to such future estates as have not yet vested or possibly may not vest. For example, an estate is granted to A for life, with remainder to the heir of B. During B's lifetime, the remainder is in abeyance, for until the death of B it is uncertain who is B's heir. Similarly the freehold of a benefice, on the death of the incumbent, is said to be in abeyance until the next incumbent takes possession.
Ability To Pay Taxation
Ability To Pay
Ability To Repay
Abnormal Earnings Valuation Model
Abnormal Return
In finance, an abnormal return is the difference between the actual return of a security and the expected return. Abnormal returns are sometimes triggered by "events." Events can include mergers, dividend announcements, company earning announcements, interest rate increases, lawsuits, etc. all of which can contribute to an abnormal return. Events in finance can typically be classified as information or occurrences that have not already been priced by the market.
Abnormal Spoilage
Above Full Employment Equilibrium
Above Ground Risk
Above Par
Above The Line Costs
Above The Line Deduction
In the United States tax law, an above-the-line deduction is a deduction that the Internal Revenue Service allows a taxpayer to subtract from his or her gross income in arriving at "adjusted gross income" for the taxable year. These deductions are set forth in Internal Revenue Code Section 62. A taxpayer's gross income minus his or her above-the-line deductions is equal to the adjusted gross income. Because these deductions are taken before adjusted gross income is calculated, they are designated "above-the-line." Thus, those deductions allowed in computing "taxable income" under section 63 of the IRC are "below the line deductions". Above-the-line deductions may be more valuable to high income taxpayers than below-the-line deductions.
Above The Market
Above Water
Absentee Landlord
Absentee landlord is an economic term for a person who owns and rents out a profit-earning property, but does not live within the property's local economic region. The term "absentee ownership" was popularised by economist Thorstein Veblen's book of the same name, Absentee ownership.
Absentee Owner
Absenteeism is a habitual pattern of absence from a duty or obligation. Traditionally, absenteeism has been viewed as an indicator of poor individual performance, as well as a breach of an implicit contract between employee and employer; it was seen as a management problem, and framed in economic or quasi-economic terms. More recent scholarship seeks to understand absenteeism as an indicator of psychological, medical, or social adjustment to work.
Absolute Advantage
In economics, the principle of absolute advantage refers to the ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources. Adam Smith first described the principle of absolute advantage in the context of international trade, using labor as the only input.
Absolute Auction
Absolute Beneficiary
Absolute Breadth Index (ABI)
Absolute Frequency
Absolute Interest
Absolute Performance Standard
Absolute Physical Life
Absolute Priority
Absolute Rate
Absolute Return Index
Absolute Return
Absolute Title
Allodial title constitutes ownership of real property that is independent of any superior landlord. Allodial title is related to the concept of land held "in allodium", or land ownership by occupancy and defense of the land. Historically, much of land was uninhabited and could therefore be held "in allodium". In the modern developed world, true allodial title is only possible for nation state governments. Although the word "allodial" has been used in the context of private ownership in a few states of the United States, this ownership is still restricted by governmental authority; the word "allodial" in these cases describes land with fewer but still significant governmental restrictions.
Absolute Value
Absorbed Account
Absorbed Cost
Absorption Costing
Total absorption costing is a method of Accounting cost which entails the full cost of manufacturing or providing a service. TAC includes not just the costs of materials and labour, but also of all manufacturing overheads.The cost of each cost center can be direct or indirect cost. The direct cost can be easily identified with individual cost centers. whereas the indirect cost can't be easily identified with the cost center. The distribution of overhead among the departments is called apportionment.
Absorption Rate
Abstract Of Title
A property abstract is a collection of legal documents that chronicle transactions associated with a particular parcel of land. Generally included are references to deeds, mortgages, wills, probate records, court litigations, and tax sales—basically, any legal document that affects the property.
Abu Dhabi Investment Authority (ADIA)
Abu Dhabi Investment Council (ADIC)
Abusive Tax Shelter
Academy Of Financial Divorce Practitioners
Academy of Accounting Historians
The Academy of Accounting Historians, established in 1973, is a non-profit organization of scholars of accounting history.
Accelerated Amortization
Accelerated Benefits
Accelerated Bookbuild
Accelerated Cost Recovery System (ACRS)
Accelerated Death Benefit (ADB)
Accelerated Depreciation
Accelerated depreciation refers to any one of several methods by which a company, for 'financial accounting' or tax purposes, depreciates a fixed asset in such a way that the amount of depreciation taken each year is higher during the earlier years of an asset's life. For financial accounting purposes, accelerated depreciation is expected to be much more productive during its early years, so that depreciation expense will more accurately represent how much of an asset's usefulness is being used up each year. For tax purposes, accelerated depreciation provides a way of deferring corporate income taxes by reducing taxable income in current years, in exchange for increased taxable income in future years. This is a valuable tax incentive that encourages businesses to purchase new assets.
Accelerated Option
Accelerated Payments
Accelerated Reply Mail (ARM)
Accelerated Share Repurchase (ASR)
Accelerated Vesting
Accredited Investor
An accredited or sophisticated investor is an investor with a special status under financial regulation laws. The definition of an accredited investor, and the consequences of being classified as such, vary between countries. Generally, accredited investors include high-net-worth individuals, banks, and other large corporations, who have access to complex and higher-risk investments such as venture capital, hedge funds and angel investments.
Active Management
Active management refers to a portfolio management strategy where the manager makes specific investments with the goal of outperforming an investment benchmark index. In passive management, investors expect a return that closely replicates the investment weighting and returns of a benchmark index and will often invest in an index fund.
Adjustable Rate Mortgage – ARM
Alpha (Under Review)
American Depositary Receipt – ADR
Amortization is the process of decreasing, or accounting for, an amount over a period. The word comes from Middle English amortisen to kill, alienate in mortmain, from Anglo-French amorteser, alteration of amortir, from Vulgar Latin admortire "to kill", from Latin ad- and mort-, "death".
In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs. For instance, an arbitrage is present when there is the opportunity to instantaneously buy low and sell high.
Asset Allocation
Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investment time frame.
Assets Under Managment