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Account Executive - A stockbroker by any other name. More specifically, the term refers to a NASD-registered securities representative, but also is used generically to describe almost any salesperson.
Accredited Investor - Wealthy investors, generally maintaining a net worth of at least $1 million or earning at least $200,000 per year, with the privilege of investing in risky private stock sales and other securities. The term itself is defined under Regulation D of the Securities Act.
Accrual Accounting - Accounting procedure where income and expenses are recognized when entered into the books of a company, as opposed to the time when they are actually paid or received in cash. So if it's not cash, then it must be accrual! (See "Cash Basis Accounting")
Accrued Interest - Interest payments due to the seller of a bond or other fixed-income investment by the buyer; the amount of the coupon pro-rated to the number of days since the last coupon payment -- the buyer pays this portion, then collects the full amount of the next coupon.
Accumulation - Term used by technical analysts describing a stock whose price is holding steady, thus implying that investors are willing purchase or "accumulate" shares at this price.
Active Market - Term associated with stocks or other securities that trade with a relatively high measure of liquidity, typically exhibited in high volume and narrow spreads. It is also a matter of opinion, as one man’s active market may be another’s illiquid market.
Affiliate - Any person directly or indirectly holding 10% or more of a corporation's outstanding shares -- typically directors, elected officers and immediate family members. As such, they are subject to reporting stock sales and purchases and are restricted from making certain transactions in the company’s stock.
Aftermarket - (1) Sometimes called "secondary market," this term refers to the trading in a security after its initial public offering. (2) The term may also be used in reference to trading after regular market hours.
Agency - (1) Term used to describe a security issued by a U.S. Government agency; or (2) a stockbroker buying or selling a security without taking a financial risk (i.e. making a market). In the latter case, the broker simply handles the transaction between the buyer and seller for a commission.
All or None - (1) Term used to describe a trading order instructing the broker to buy or sell the entire amount of the order in one transaction or not at all; or (2) a condition where an underwriter must sell every share or unit in a security's offering or the issuing company has the right to cancel the entire offering -- in modern underwritings, this condition is seldom imposed.
American Depositary Receipt (ADR) - Negotiable receipt for a given number of shares of stock in a foreign corporation. A popular form of owning shares of foreign companies, ADRs are subject to the securities laws of the United States and the rules of the member exchanges.
American Stock Exchange (AMEX) - Founded in 1921 and located in New York, it’s the third-largest U.S. stock exchange. While minimum listing requirements are similar to those of the more popular Nasdaq stock market, shares trade on the AMEX in the same "auction" manner utilized by the much larger New York Stock Exchange as opposed to Nasdaq's "market making" methods. In recent years, the AMEX exchange has lost prominence in stock listings and trading volume to both Nasdaq and the NYSE. However, the AMEX has enjoyed gains in trading "derivative" securities such as options and futures contracts.
Analyst - Person or other party that purports to serve as an authority on the evaluation of a security for investment consideration. Most established brokerage firms employ analysts to review stocks and other securities for "buy," "sell" or "hold" recommendations. Many other analysts operate independent of brokerage firms and commonly publish their analysis in newsletters or other publications. However, analyst qualifications run to extremes and many amateurs or biased parties often distribute securities analysis that may be misleading or one-sided.
Annual Report - Publication distributed once each year by public corporations to inform shareholders of company progress and attract potential investors. Most annual reports contain only financial highlights and general business information, but some also include fancy graphics printed on glossy paper -- reflecting a considerable expense outlay. For detailed financial reports and disclosures, all public companies whose shares are listed on the major U.S. stock exchanges are required to file a detailed annual report with the SEC via form 10-K.
Annuity - Contract between an individual and an insurance company, providing lifetime income to the person on whose life the contract is based, in return for either a lump-sum or periodic payment to the insurance company.
Arbitrage - Versatile little word that takes on many different personalities, but essentially means the act of profiting from a difference in price. For example, arbitrage could apply to buying and selling currencies in different markets to take advantage of price disparities, or it may refer to an investor or market maker buying one stock and then selling it short to profit from the difference between bid and ask prices. (See "Spread")
Arbitration - Two parties agree to settle a dispute by binding themselves to the decision of a third-party referee outside of the courts; frequently used for customer disputes against stockbrokers and their firms.
Ask - The lowest price at which a dealer or market maker will sell a security. (See "Bid," "Offer," "Quote")
Asset - Anything that an individual or a corporation owns. In corporate finance, assets include items of value such as cash, land, equipment and even intellectual properties, and are generally separated on a company’s balance sheet into two categories: current assets (those which can be converted into cash within a year or less) and fixed assets (those which are expected to remain fixed for longer than one year).
Asset Financing - Companies borrow money secured by specific assets such as land, buildings or equipment rather than by general obligation. In some respects, this is the corporate equivalent of going to the pawnshop.
Associated Person - Almost anyone who is employed, owns or directs a brokerage firm, including managers and salespersons but generally excluding clerical or administrative personnel.
At the Close - Trade order specifically instructing the transaction to be filled in the last trade for a particular security on a trading day or to be canceled otherwise.
At the Money - "Options speak" referring to a security and an option strike price which are the same. (See "In the Money," "Out of the Money.")
At the Open - Trade order specifically instructing the transaction to be filled in the first trade for a particular security on a trading day or to be canceled otherwise.
Authorized Stock - Maximum number of shares that a corporation may issue through its charter. The corporation must amend its charter or articles of incorporation, usually by vote of approval by a majority of shareholders, in order to increase or decrease this amount.
Automatic Reinvestment - Applying to most mutual funds and about 800 stocks, the vehicle for enacting this strategy in stocks is commonly known as a dividend reinvestment plan (DRIP), which allows shareholders to receive dividends in the form of new shares rather than cash. It works the same way for mutual funds, and most funds offer automatic reinvestment as a choice for investors.
Average Down - When you buy the same security at different times and at sequentially lower prices, in effect you are lowering, or averaging down, your cost per share. For example, if you bought 100 shares at $18, then 100 shares at $14, you would have invested a total of 200 shares at an average cost of $16 per share. Buy another 100 shares for $10 and your average would drop to $14 per share. Many investors who are confident in the long-term potential for a particular stock will consider falling prices a buying opportunity and accumulate more shares at lower prices.
Average Life - Average time before a bond is likely to be called or retired, which often is less than the time until the bond matures.
Average Maturity - Average maturity of all bonds held in a portfolio and weighted by the dollar value of those holdings. A long average maturity of, say, 15 years or more would indicate higher current yields and sensitivity to interest rate changes while a short average maturity, say, five years or less would indicate lower current yields and less sensitivity to interest rates.
Average Up - When you buy the same security at different times and at sequentially higher prices, in effect you are raising, or averaging up, your cost per share. For example, if you bought 100 shares at $10, then 100 shares at $14, you would have invested a total of 200 shares at an average cost of $12 per share. Buy another 100 shares for $16 and your average would rise to $14 per share.
Away from the Market - Trade orders that cannot be executed because they are above or below the current bid or ask. For example, a limit order to sell 100 shares of Microsoft at $95 when the best or lowest offer is $89 will not be filled and is said the be "away from the market." | 
