A/D - [Advance/Decline Line]
A technical indicator that plots changes in the value of the advance-decline index over a certain time period. Each point on the chart is calculated by taking the difference between the number of advancing/declining issues and adding the result to the previous period's value, as shown by the following formula:
A/D Line = (# of Advancing Stocks - # of Declining Stocks) + Previous Period's A/D Line Value
AAA - [American Accounting Association]
An organization that supports worldwide excellence in accounting education, research and practice. The American Accounting Association is the primary professional association for accounting academics in the United States. Formed in 1916 under the name American Association of University Instructors in Accounting, it assumed its current name in 1936. It is a voluntary organization comprised of individuals interested in accounting education and research.
ABB - [Activity-Based Budgeting]
A method of budgeting in which the activities that incur costs in every functional area of an organization are recorded and their relationships are defined and analyzed. Activities are then tied to strategic goals, after which the costs of the activities needed are used to create the budget.
Activity based budgeting stands in contrast to traditional, cost-based budgeting practices in which a prior period's budget is simply adjusted to account for inflation or revenue growth. As such, ABB provides opportunities to align activities with objectives, streamline costs and improve business practices.
ABI - [Absolute Breadth Index]
A market indicator used to determine volatility levels in the market without factoring in price direction. It is calculated by taking the absolute value of the difference between the number of advancing issues and the number of declining issues. Typically, large numbers suggest volatility is increasing, which is likely to cause significant changes in stock prices in the coming weeks.
ACATS - [Automated Customer Account Transfer Service]
A system that facilitates the transfer of securities from one trading account to another at a different brokerage firm or bank. The National Securities Clearing Corporation (NSCC) developed the ACATS system, replacing the previous manual asset transfer system with a fully automated and standardized one.
ACB - [Adjusted Cost Base]
An income tax term that refers to the change in an asset's book value resulting from improvements, new purchases, sales, payouts or other factors. An adjusted cost base can be calculated on a single or a per unit basis.
Accountant
One who records and/or examines the finances of individuals or businesses. Someone who comes in very handy at tax time.
Accounting Earnings
A company's earnings as reported on its income statement.
Accounting Insolvency
A situation in which total liabilities exceed total assets. A company with a negative net worth is insolvent on the books.
Accounting Liquidity
The ease and speed at which assets can be converted to cash.
Accounts Payable
An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable entry is found on a balance sheet under the heading current liabilities.
Money owed by a company to suppliers.
Accounts Receivable
Money owed to a company by customers that have purchased goods and/or services on credit. Accounts receivable is listed as an asset on the balance sheet, as it is a number that will (presumably) be turned into cash by the company as the receivables are paid off.
Accounts Receivable Turnover
A measure of how quickly customers pay their bills. Accounts receivable turnover is sales for the period divided by the average accounts receivable. Also called receivables turnover.
Accredited Investor
Someone who is supposed to know a lot about investing, and who meets certain income and net worth criteria, as established by the SEC [Securities and Exchange Commission]. Being an "accredited investor" is sometimes a requirement for certain limited partnership investments.
Accrual Basis
An accounting method where income is reported when earned and expenses are reported when incurred. This is in contrast to cash-basis accounting, which reports income when it is actually received and expenses when they're actually paid.
Accrual Bond
See Zero Coupon Bond.
Accrued Expenses
Expenses incurred during a given accounting period for which payment has not yet been made.
Accrued Interest
Interest that has accumulated on a bond since the last interest payment was made.
Accumulated Dividend
A dividend that is due and owed to a preferred stockholder, but has not yet been paid.
Accumulated Earnings
Retained earnings.
Accumulated Earnings Tax
A tax on earnings retained by a business to avoid paying the higher income taxes that would be due if the earnings were paid out to the owners as dividends. Also known as an accumulated profits tax.
Accumulation
Buying shares over a period of time. For an individual investor, this just means buying additional shares of a stock you already own. For an institution, however, it may mean making a series of purchases rather than one large purchase that could drive up the market price.
Accumulation Period
In retirement parlance, the years when one is making regular contributions to a retirement plan or deferred annuity. The period is considered to end when the income payments begin.
Accumulation Unit
A share of participation in a variable annuity.
ACH - [Automated Clearing House]
An electronic banking network that processes large volumes of both debit and credit transactions. Common with processing payments for fund transfers and money order sales.
AD&D - [Accidental Death And Dismemberment Insurance]
A rider attached to a life or health insurance policy. AD&D covers death by accidental means (rather than natural causes) and dismemberment, which includes loss of the use of certain body parts (including limbs or eyesight.)
These riders are usually written in such a way that the insurer must pay double the amount payable otherwise, or a specific amount of continuous income payments, and are sometimes called double indemnity riders. AD&D insurance is often offered by employers as an extra option on group health plans.
ADTV - [Average Daily Trading Volume]
The average amount of individual securities traded in a day or over a specified amount of time. Trading activity relates to the liquidity of a security; therefore, when average daily trading volume is high, the stock can be easily traded and has high liquidity. As a result, average daily trading volume can have an effect on the price of the security. If trading volume isn't very high, the security will tend to be less expensive because people are not as willing to buy it.
AFA - [Afghanistan Afghani]
The currency abbreviation or currency symbol for the Afghanistan afghani (AFA). The Afghanistan afghani is made up of 100 pul. The new afghani replaced the prior currency in early 2003, due to the low relative value of the nation's currency.
AFFE - [Acquired Fund Fees And Expenses]
A line item in a fund-of-funds' prospectus that shows the operating expenses of the underlying funds. This became a requirement as of January 2007 and this information is found beneath the "Fees and Expenses" heading.
AGI - [Adjusted Gross Income]
A measure of income used to determine how much of your income is taxable. Adjusted gross income (AGI) is calculated as your gross income from taxable sources minus allowable deductions, such as un-reimbursed business expenses, medical expenses, alimony and deductible retirement plan contributions.
AHT - [After-Hours Trading]
Trading after regular trading hours on the major exchanges.
Also known as the "after-hours market".
AIB - [American Institute Of Banking]
Founded in 1907, the American Institute of Banking (AIB) is a provider of education and training to the banking industry. More than 150,000 bankers participate in its programs each year.
AIS - [Accounting Information System]
The collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities.
AML - [Anti Money Laundering]
A set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. In most cases money launderers hide their actions through a series of steps that make it look like money coming from illegal or unethical sources was earned legitimately.
Amortization
Amortization reduces the stated value of intangible assets which, as a rule, have no physical substance but add benefits to a business. In essence, amortization defines the consumption of value of the purchased intangible assets. Through amortization, the costs are spread over the useful life of assets. The costs are allocated in a rational manner for a period that is expected to accumulate benefits from the utilization of intangible assets. In other words, the owners of a business prepay the expenses before the actual use of the assets. In order to qualify for amortization, the assets have to match three requirements. They need to have determinable or measurable value. Their useful life must exceed one year in length. Thirdly, intangible assets are typically separate from goodwill.
The terms amortization and depreciation are sometimes used interchangeably. However, amortization refers to intangible assets such as franchise licenses, patents, trademarks, and other non-monetary assets. Depreciation, on the other hand, refers to tangible assets which have actual physical existence (land, facilities, and equipment).
Accountants apply two methods to calculate amortization. The Units of Activity Method requires that the intangible asset is consumed in a production pattern. In contrast, the Straight-Line Method is used when the asset is not consumed in a production pattern.
The process of amortization will be illustrated by the purchase of a patent which gives the right to produce or sell innovative products. This patent has a legal life of seventeen years. We should note that similarly to other intangible assets, patents are fully amortized prior to the end of their legal life. We set the price of the patent at $ 200.000. However, the purchasing company believes that this sum exceeds the useful life of the asset. Then, the investor may estimate that the useful life of the patent is only ten years. He will utilize the Straight-Line Method to calculate that the amortization amounts to $ 20.000 each year. Basically, he will divide the total sum by the number of years in order to record the amortization per year. He can debit the amortization expenses for $ 20.000 and credit the accumulated amortization by the same amount. Similar entries will be recorded to account for the amortization of other intangible assets. The amount can be calculated by amortization charts, software packages, and financial calculators.
Annual Report
The Annual Report is yearly financial statement issued by a business or foundation. The Annual Report contains data about company’s activities, liabilities, assets, profits, and expenses. The Annual Report is made for the benefits of the company’s share holders.
AON - [All Or None]
A condition used on a buy or sell order to instruct the broker to fill the order completely or not at all. If there is insufficient supply to meet the quantity requested by the order then it is canceled at the close of the market.
APR - [Annual Percentage Rate]
The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.
AQO - [Average Qualitative Opinion]
AQO is a number that summarizes analysts' ratings for a particular company.
Arbitrage
Arbitrage is the process of profiting from price differences in different markets for one and the same asset. For example if you can buy gold bullion for $800 per ounce in Toronto and sell it for $840 per ounce in Shanghai then you have made a $40 or 5% profit (excluding expenses). Arbitrage can be done in different asset classes. Another example of arbitrage is if you buy shares of certain company on London Stock Exchange and sell those shares on NYSE (New York Stock Exchange) for profit.
A classic example of arbitrage is the “Yen Carry Trade”. Because the Bank of Japan keeps interest rates artificially low in the country, traders borrow cheap yen and convert it in currencies with higher interest rates and then buy various financial instruments denominated in that currency. Parts of the cheap yens go into commodity and emerging markets too. The traders profit from the differences between their high yield investments and the low Japanese interest rates.
Archer MSA
A savings account that earns tax deductible interest for medical expenses. Archer MSAs are often used by small business or self-employed individuals as a way to pay for healthcare services to employees. This type of account gets its name from Bill Archer, the congressman who helped create the MSA by sponsoring its amendment.
ARR - [Accounting Rate of Return]
ARR provides a quick estimate of a project's worth over its useful life. ARR is derived by finding profits before taxes and interest.
ASCOT - [Asset Swapped Convertible Option Transaction]
An option on a convertible bond that is used to separate a convertible bond into its two components: 1) a bond and 2) an option to acquire stock. When the bond is stripped of its conversion feature, the holder has a bond featuring fairly stable returns on debt, and a volatile - but potentially very valuable - option.
ASI - [Accumulative Swing Index]
An indicator used by traders to gauge a security's long-term trend by comparing bars which contain its opening, closing, high and low prices throughout a specific period of time. When the ASI is positive, it suggests that the long-term trend will be higher, and when the ASI is negative, it suggests that the long-term trend will be lower.
The ASI is often cited as being developed by Welles Wilder.
ASR - [Accelerated Share Repurchase]
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. The shares are returned to the client through purchases in the open market, often purchased over a period that can range from one day to several months.
Assets
Assets represent physical and non-physical items that are owned by individuals or companies. They are objects of value which can be converted into cash. Moreover, they are relevant for the purposes of debt payment. In essence, assets equal to liabilities plus capital.
There are two main categories: tangible and intangible assets. The first type of assets has physical existence. Examples of tangible assets are cash, machinery, real estate, and buildings. Furthermore, this category is divided into current and fixed assets. The current assets fund the daily operations of the company. They represent cash or items convertible into cash that can be sold or utilized in the business activities. The current assets include cash and cash equivalents such as currency and bank drafts, short-term investments, inventory, receivables, and prepaid expenses. They are consumed or converted into cash within one year or one operating cycle. Fixed investments, commonly called ‘property, plant, and equipment’ (PPE), include real estate, equipment, machinery, tools, and buildings. They are used continuously for the purpose of profit earning.
The second type, intangible assets, has non-physical existence. This means that the intangible assets cannot be measured. There are two main subcategories: legal intangibles and competitive intangibles. The first type consists of copyrights, patents, design rights, data bases, and others. In general, they represent intangibles that entitle to legal property rights. The competitive intangibles refer to knowledge and know how, collaboration and structural activities, leverage activities, etc. They have an impact on the productivity, costs, revenues, and market values.
The intangible assets are generally expensed in view of their life expectancy. Assets such as copyrights and patents have identifiable useful life. They are amortized through the Straight-Line Method. Other assets such as trademarks have indefinite useful life. They are assessed for impairment or damages annually. If there are recognizable damages, loss is recognized in the income statement. The loss is calculated by subtracting the fair value of the asset from its book value.
Some intangible assets have either identifiable or indefinite useful life depending on the circumstances. For instance, a company name is considered an indefinite asset. However, if the company starts to operate under a second company`s patent, its name will have an identifiable useful life.
ATOI - [After Tax Operating Income]
A company's total operating income after taxes. This non-GAAP measure excludes any after-tax benefits or charges such as effects from accounting changes.
ATS - [Automatic Transfer Service]
A banking service offered to customers that has both a general and specific meaning. On a general level, it can mean any automatic transfer of funds between customer accounts. For example, a regular transfer from a checking account to pay off a bank loan, or a monthly transfer from a checking account to a savings account.
More specifically, it describes the overdraft protection provided when there is an automatic transfer of funds from a customer's savings account to his or her checking account when there are insufficient funds to cover unpaid checks or maintain a minimum balance. Ordinarily, the bank will transfer the exact amount of funds required to cover unpaid checks. The customer avoids any overdraft fees and all the hassle associated with returned checks.
AUD
In the currency market, this is the abbreviation for the Australian dollar.
Autonomous Region
Governorates of As Sulaymaniyah, Dahuk, and Irbil, the Kurdish majority area. In this region--popularly known as Kurdistan--Kurdish has status of official language, and residents enjoy limited autonomy from central government.
Ayatollah
A leader of the Shiite sect of the Muslim religion, serving as teacher, judge, and administrator.
A technical indicator that plots changes in the value of the advance-decline index over a certain time period. Each point on the chart is calculated by taking the difference between the number of advancing/declining issues and adding the result to the previous period's value, as shown by the following formula:
A/D Line = (# of Advancing Stocks - # of Declining Stocks) + Previous Period's A/D Line Value
AAA - [American Accounting Association]
An organization that supports worldwide excellence in accounting education, research and practice. The American Accounting Association is the primary professional association for accounting academics in the United States. Formed in 1916 under the name American Association of University Instructors in Accounting, it assumed its current name in 1936. It is a voluntary organization comprised of individuals interested in accounting education and research.
ABB - [Activity-Based Budgeting]
A method of budgeting in which the activities that incur costs in every functional area of an organization are recorded and their relationships are defined and analyzed. Activities are then tied to strategic goals, after which the costs of the activities needed are used to create the budget.
Activity based budgeting stands in contrast to traditional, cost-based budgeting practices in which a prior period's budget is simply adjusted to account for inflation or revenue growth. As such, ABB provides opportunities to align activities with objectives, streamline costs and improve business practices.
ABI - [Absolute Breadth Index]
A market indicator used to determine volatility levels in the market without factoring in price direction. It is calculated by taking the absolute value of the difference between the number of advancing issues and the number of declining issues. Typically, large numbers suggest volatility is increasing, which is likely to cause significant changes in stock prices in the coming weeks.
ACATS - [Automated Customer Account Transfer Service]
A system that facilitates the transfer of securities from one trading account to another at a different brokerage firm or bank. The National Securities Clearing Corporation (NSCC) developed the ACATS system, replacing the previous manual asset transfer system with a fully automated and standardized one.
ACB - [Adjusted Cost Base]
An income tax term that refers to the change in an asset's book value resulting from improvements, new purchases, sales, payouts or other factors. An adjusted cost base can be calculated on a single or a per unit basis.
Accountant
One who records and/or examines the finances of individuals or businesses. Someone who comes in very handy at tax time.
Accounting Earnings
A company's earnings as reported on its income statement.
Accounting Insolvency
A situation in which total liabilities exceed total assets. A company with a negative net worth is insolvent on the books.
Accounting Liquidity
The ease and speed at which assets can be converted to cash.
Accounts Payable
An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable entry is found on a balance sheet under the heading current liabilities.
Money owed by a company to suppliers.
Accounts Receivable
Money owed to a company by customers that have purchased goods and/or services on credit. Accounts receivable is listed as an asset on the balance sheet, as it is a number that will (presumably) be turned into cash by the company as the receivables are paid off.
Accounts Receivable Turnover
A measure of how quickly customers pay their bills. Accounts receivable turnover is sales for the period divided by the average accounts receivable. Also called receivables turnover.
Accredited Investor
Someone who is supposed to know a lot about investing, and who meets certain income and net worth criteria, as established by the SEC [Securities and Exchange Commission]. Being an "accredited investor" is sometimes a requirement for certain limited partnership investments.
Accrual Basis
An accounting method where income is reported when earned and expenses are reported when incurred. This is in contrast to cash-basis accounting, which reports income when it is actually received and expenses when they're actually paid.
Accrual Bond
See Zero Coupon Bond.
Accrued Expenses
Expenses incurred during a given accounting period for which payment has not yet been made.
Accrued Interest
Interest that has accumulated on a bond since the last interest payment was made.
Accumulated Dividend
A dividend that is due and owed to a preferred stockholder, but has not yet been paid.
Accumulated Earnings
Retained earnings.
Accumulated Earnings Tax
A tax on earnings retained by a business to avoid paying the higher income taxes that would be due if the earnings were paid out to the owners as dividends. Also known as an accumulated profits tax.
Accumulation
Buying shares over a period of time. For an individual investor, this just means buying additional shares of a stock you already own. For an institution, however, it may mean making a series of purchases rather than one large purchase that could drive up the market price.
Accumulation Period
In retirement parlance, the years when one is making regular contributions to a retirement plan or deferred annuity. The period is considered to end when the income payments begin.
Accumulation Unit
A share of participation in a variable annuity.
ACH - [Automated Clearing House]
An electronic banking network that processes large volumes of both debit and credit transactions. Common with processing payments for fund transfers and money order sales.
AD&D - [Accidental Death And Dismemberment Insurance]
A rider attached to a life or health insurance policy. AD&D covers death by accidental means (rather than natural causes) and dismemberment, which includes loss of the use of certain body parts (including limbs or eyesight.)
These riders are usually written in such a way that the insurer must pay double the amount payable otherwise, or a specific amount of continuous income payments, and are sometimes called double indemnity riders. AD&D insurance is often offered by employers as an extra option on group health plans.
ADTV - [Average Daily Trading Volume]
The average amount of individual securities traded in a day or over a specified amount of time. Trading activity relates to the liquidity of a security; therefore, when average daily trading volume is high, the stock can be easily traded and has high liquidity. As a result, average daily trading volume can have an effect on the price of the security. If trading volume isn't very high, the security will tend to be less expensive because people are not as willing to buy it.
AFA - [Afghanistan Afghani]
The currency abbreviation or currency symbol for the Afghanistan afghani (AFA). The Afghanistan afghani is made up of 100 pul. The new afghani replaced the prior currency in early 2003, due to the low relative value of the nation's currency.
AFFE - [Acquired Fund Fees And Expenses]
A line item in a fund-of-funds' prospectus that shows the operating expenses of the underlying funds. This became a requirement as of January 2007 and this information is found beneath the "Fees and Expenses" heading.
AGI - [Adjusted Gross Income]
A measure of income used to determine how much of your income is taxable. Adjusted gross income (AGI) is calculated as your gross income from taxable sources minus allowable deductions, such as un-reimbursed business expenses, medical expenses, alimony and deductible retirement plan contributions.
AHT - [After-Hours Trading]
Trading after regular trading hours on the major exchanges.
Also known as the "after-hours market".
AIB - [American Institute Of Banking]
Founded in 1907, the American Institute of Banking (AIB) is a provider of education and training to the banking industry. More than 150,000 bankers participate in its programs each year.
AIS - [Accounting Information System]
The collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities.
AML - [Anti Money Laundering]
A set of procedures, laws or regulations designed to stop the practice of generating income through illegal actions. In most cases money launderers hide their actions through a series of steps that make it look like money coming from illegal or unethical sources was earned legitimately.
Amortization
Amortization reduces the stated value of intangible assets which, as a rule, have no physical substance but add benefits to a business. In essence, amortization defines the consumption of value of the purchased intangible assets. Through amortization, the costs are spread over the useful life of assets. The costs are allocated in a rational manner for a period that is expected to accumulate benefits from the utilization of intangible assets. In other words, the owners of a business prepay the expenses before the actual use of the assets. In order to qualify for amortization, the assets have to match three requirements. They need to have determinable or measurable value. Their useful life must exceed one year in length. Thirdly, intangible assets are typically separate from goodwill.
The terms amortization and depreciation are sometimes used interchangeably. However, amortization refers to intangible assets such as franchise licenses, patents, trademarks, and other non-monetary assets. Depreciation, on the other hand, refers to tangible assets which have actual physical existence (land, facilities, and equipment).
Accountants apply two methods to calculate amortization. The Units of Activity Method requires that the intangible asset is consumed in a production pattern. In contrast, the Straight-Line Method is used when the asset is not consumed in a production pattern.
The process of amortization will be illustrated by the purchase of a patent which gives the right to produce or sell innovative products. This patent has a legal life of seventeen years. We should note that similarly to other intangible assets, patents are fully amortized prior to the end of their legal life. We set the price of the patent at $ 200.000. However, the purchasing company believes that this sum exceeds the useful life of the asset. Then, the investor may estimate that the useful life of the patent is only ten years. He will utilize the Straight-Line Method to calculate that the amortization amounts to $ 20.000 each year. Basically, he will divide the total sum by the number of years in order to record the amortization per year. He can debit the amortization expenses for $ 20.000 and credit the accumulated amortization by the same amount. Similar entries will be recorded to account for the amortization of other intangible assets. The amount can be calculated by amortization charts, software packages, and financial calculators.
Annual Report
The Annual Report is yearly financial statement issued by a business or foundation. The Annual Report contains data about company’s activities, liabilities, assets, profits, and expenses. The Annual Report is made for the benefits of the company’s share holders.
AON - [All Or None]
A condition used on a buy or sell order to instruct the broker to fill the order completely or not at all. If there is insufficient supply to meet the quantity requested by the order then it is canceled at the close of the market.
APR - [Annual Percentage Rate]
The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.
AQO - [Average Qualitative Opinion]
AQO is a number that summarizes analysts' ratings for a particular company.
Arbitrage
Arbitrage is the process of profiting from price differences in different markets for one and the same asset. For example if you can buy gold bullion for $800 per ounce in Toronto and sell it for $840 per ounce in Shanghai then you have made a $40 or 5% profit (excluding expenses). Arbitrage can be done in different asset classes. Another example of arbitrage is if you buy shares of certain company on London Stock Exchange and sell those shares on NYSE (New York Stock Exchange) for profit.
A classic example of arbitrage is the “Yen Carry Trade”. Because the Bank of Japan keeps interest rates artificially low in the country, traders borrow cheap yen and convert it in currencies with higher interest rates and then buy various financial instruments denominated in that currency. Parts of the cheap yens go into commodity and emerging markets too. The traders profit from the differences between their high yield investments and the low Japanese interest rates.
Archer MSA
A savings account that earns tax deductible interest for medical expenses. Archer MSAs are often used by small business or self-employed individuals as a way to pay for healthcare services to employees. This type of account gets its name from Bill Archer, the congressman who helped create the MSA by sponsoring its amendment.
ARR - [Accounting Rate of Return]
ARR provides a quick estimate of a project's worth over its useful life. ARR is derived by finding profits before taxes and interest.
ASCOT - [Asset Swapped Convertible Option Transaction]
An option on a convertible bond that is used to separate a convertible bond into its two components: 1) a bond and 2) an option to acquire stock. When the bond is stripped of its conversion feature, the holder has a bond featuring fairly stable returns on debt, and a volatile - but potentially very valuable - option.
ASI - [Accumulative Swing Index]
An indicator used by traders to gauge a security's long-term trend by comparing bars which contain its opening, closing, high and low prices throughout a specific period of time. When the ASI is positive, it suggests that the long-term trend will be higher, and when the ASI is negative, it suggests that the long-term trend will be lower.
The ASI is often cited as being developed by Welles Wilder.
ASR - [Accelerated Share Repurchase]
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. The shares are returned to the client through purchases in the open market, often purchased over a period that can range from one day to several months.
Assets
Assets represent physical and non-physical items that are owned by individuals or companies. They are objects of value which can be converted into cash. Moreover, they are relevant for the purposes of debt payment. In essence, assets equal to liabilities plus capital.
There are two main categories: tangible and intangible assets. The first type of assets has physical existence. Examples of tangible assets are cash, machinery, real estate, and buildings. Furthermore, this category is divided into current and fixed assets. The current assets fund the daily operations of the company. They represent cash or items convertible into cash that can be sold or utilized in the business activities. The current assets include cash and cash equivalents such as currency and bank drafts, short-term investments, inventory, receivables, and prepaid expenses. They are consumed or converted into cash within one year or one operating cycle. Fixed investments, commonly called ‘property, plant, and equipment’ (PPE), include real estate, equipment, machinery, tools, and buildings. They are used continuously for the purpose of profit earning.
The second type, intangible assets, has non-physical existence. This means that the intangible assets cannot be measured. There are two main subcategories: legal intangibles and competitive intangibles. The first type consists of copyrights, patents, design rights, data bases, and others. In general, they represent intangibles that entitle to legal property rights. The competitive intangibles refer to knowledge and know how, collaboration and structural activities, leverage activities, etc. They have an impact on the productivity, costs, revenues, and market values.
The intangible assets are generally expensed in view of their life expectancy. Assets such as copyrights and patents have identifiable useful life. They are amortized through the Straight-Line Method. Other assets such as trademarks have indefinite useful life. They are assessed for impairment or damages annually. If there are recognizable damages, loss is recognized in the income statement. The loss is calculated by subtracting the fair value of the asset from its book value.
Some intangible assets have either identifiable or indefinite useful life depending on the circumstances. For instance, a company name is considered an indefinite asset. However, if the company starts to operate under a second company`s patent, its name will have an identifiable useful life.
ATOI - [After Tax Operating Income]
A company's total operating income after taxes. This non-GAAP measure excludes any after-tax benefits or charges such as effects from accounting changes.
ATS - [Automatic Transfer Service]
A banking service offered to customers that has both a general and specific meaning. On a general level, it can mean any automatic transfer of funds between customer accounts. For example, a regular transfer from a checking account to pay off a bank loan, or a monthly transfer from a checking account to a savings account.
More specifically, it describes the overdraft protection provided when there is an automatic transfer of funds from a customer's savings account to his or her checking account when there are insufficient funds to cover unpaid checks or maintain a minimum balance. Ordinarily, the bank will transfer the exact amount of funds required to cover unpaid checks. The customer avoids any overdraft fees and all the hassle associated with returned checks.
AUD
In the currency market, this is the abbreviation for the Australian dollar.
Autonomous Region
Governorates of As Sulaymaniyah, Dahuk, and Irbil, the Kurdish majority area. In this region--popularly known as Kurdistan--Kurdish has status of official language, and residents enjoy limited autonomy from central government.
Ayatollah
A leader of the Shiite sect of the Muslim religion, serving as teacher, judge, and administrator.