| Term | Definition |
|---|---|
| A-B Trust | A trust structure used to minimize estate taxes by splitting into two trusts upon the death of the first spouse. |
| A-Shares | A class of shares offered by a company, typically with voting rights and higher priority in dividends. |
| AAA | The highest credit rating assigned by credit rating agencies, indicating the lowest risk of default. |
| AARP | A U.S.-based organization advocating for people aged 50 and older, offering resources, discounts, and insurance. |
| Abenomics | Economic policies introduced by Japan’s Prime Minister Shinzo Abe, focusing on monetary easing, fiscal stimulus, and structural reforms. |
| Ability-to-Pay Taxation | A tax principle where taxes are levied based on an individual’s ability to pay, often through progressive tax rates. |
| Abnormal Return | The difference between an investment’s actual return and its expected return, often used to measure performance. |
| Absolute Advantage | The ability of a country or entity to produce more of a good or service than others using the same resources. |
| Absolute Return | The total return of an investment over a period, regardless of market conditions or benchmarks. |
| Absorption Costing | A costing method that includes all manufacturing costs (fixed and variable) in the cost of a product. |
| Absorption Rate | The rate at which available homes or products are sold in a market during a given period. |
| Accelerated Depreciation | A method of depreciation that allows higher expenses in the early years of an asset’s life, reducing taxable income. |
| Acceleration Clause | A provision in a loan agreement requiring the borrower to repay the entire loan if specific conditions are not met. |
| Acceptable Quality Level (AQL) | The maximum number of defective items considered acceptable in a batch of products during quality control. |
| Accepting Risk | A risk management strategy where an entity acknowledges and assumes the potential for loss without transferring it. |
| Accidental Death and Dismemberment Insurance (AD&D) | Insurance providing benefits in the event of accidental death or severe injury (e.g., loss of limb). |
| Accidental Death Benefits | Additional benefits paid under an insurance policy if the insured dies due to an accident. |
| Account Balance | The amount of money in a financial account at a given time. |
| Account in Trust | A financial account managed by a trustee on behalf of a beneficiary. |
| Account Number | A unique identifier for a financial account, used for transactions and record-keeping. |
| Account Statement | A summary of financial transactions and account activity over a specific period. |
| Accountability | The obligation of an individual or organization to account for its actions and accept responsibility. |
| Accountant | A professional who manages financial records, prepares reports, and ensures compliance with tax laws. |
| Accountant Responsibility | The ethical and professional duties of an accountant to maintain accuracy, confidentiality, and integrity in financial reporting. |
| Accounting | The process of recording, summarizing, and analyzing financial transactions. |
| Accounting Conservatism | A principle of accounting that requires caution in reporting, ensuring expenses and liabilities are not understated. |
| Accounting Cycle | The process of recording and processing financial transactions, from journal entries to financial statements. |
| Accounting Equation | The foundational equation: Assets = Liabilities + Equity. |
| Accounting Information System (AIS) | A system used to collect, store, and process financial and accounting data. |
| Accounting Method | The rules and procedures used to record and report financial transactions (e.g., cash basis or accrual basis). |
| Accounting Policies | The specific principles and procedures adopted by an organization to prepare financial statements. |
| Accounting Principles | The standardized rules and guidelines governing financial accounting (e.g., GAAP, IFRS). |
| Accounting Profit | The profit calculated as total revenue minus explicit costs (e.g., wages, rent). |
| Accounting Rate of Return (ARR) | A ratio used to evaluate the profitability of an investment, calculated as average annual profit divided by initial investment. |
| Accounting Ratio | A ratio used to analyze financial statements, such as profitability, liquidity, or efficiency ratios. |
| Accounting Standard | A set of guidelines and rules for financial reporting, ensuring consistency and transparency. |
| Accounting Theory | The framework of assumptions, principles, and methodologies used in accounting. |
| Accounts Payable (AP) | The amount a company owes to suppliers for goods or services purchased on credit. |
| Accounts Payable Turnover Ratio | A measure of how quickly a company pays its suppliers, calculated as total purchases divided by average accounts payable. |
| Accounts Receivable (AR) | The amount owed to a company by its customers for goods or services delivered on credit. |
| Accounts Receivable Aging | A report categorizing accounts receivable by the length of time they have been outstanding. |
| Accounts Receivable Financing | A financing method where a company uses its receivables as collateral to secure a loan. |
| Accredited Asset Management Specialist (AAMS) | A professional certification for financial advisors specializing in asset management. |
| Accredited In Business Valuation (ABV) | A credential for professionals specializing in business valuation. |
| Accredited Investor | An individual or entity meeting specific financial criteria, allowing them to invest in unregistered securities. |
| Accretion | The gradual growth of assets or earnings through internal expansion or acquisitions. |
| Accretion of Discount | The process of increasing the value of a bond purchased at a discount as it approaches maturity. |
| Accretive | A term describing a transaction that increases earnings per share or value for shareholders. |
| Accrual Accounting | An accounting method where revenue and expenses are recorded when earned or incurred, regardless of cash flow. |
| Accruals | Revenues or expenses recognized before cash is received or paid. |
| Accrue | The process of accumulating revenues or expenses over time, even if cash has not been exchanged. |
| Accrued Expense | An expense recognized in the accounting records before it is paid. |
| Accrued Income | Income earned but not yet received or recorded. |
| Accrued Interest | Interest earned or incurred but not yet paid or received. |
| Accrued Liability | A liability recognized in the accounting records before it is paid. |
| Accrued Revenue | Revenue earned but not yet received or recorded. |
| Accumulated Depreciation | The total depreciation expense recorded for an asset over its useful life. |
| Accumulated Other Comprehensive Income | A component of shareholders’ equity representing unrealized gains and losses not included in net income. |
| Accumulation Phase | The period during which an investor builds wealth through contributions and investment growth. |
| Accumulation/Distribution Indicator (A/D) | A technical analysis tool measuring the flow of money into or out of a security. |
| Acid-Test Ratio | A liquidity ratio measuring a company’s ability to meet short-term obligations using its most liquid assets. |
| Acquisition | The process of one company purchasing another company or its assets. |
| Acquisition Accounting | The accounting method used to record the purchase of a company, including goodwill and fair value adjustments. |
| Acquisition Cost | The total cost of acquiring an asset, including purchase price and additional expenses. |
| Acquisition Premium | The difference between the price paid for a company and its pre-acquisition market value. |
| Active Management | An investment strategy where portfolio managers make decisions to outperform a benchmark. |
| Activist Investor | An investor who acquires a significant stake in a company to influence its management or strategy. |
| Activities of Daily Living (ADL) | Basic self-care tasks (e.g., eating, bathing) used to assess an individual’s ability to live independently. |
| Activity-Based Budgeting (ABB) | A budgeting method that allocates resources based on activities and their costs. |
| Activity-Based Costing (ABC) | A costing method that assigns costs to products based on the activities required to produce them. |
| Activity-Based Management (ABM) | A management approach that uses activity-based costing to improve efficiency and profitability. |
| Activity Cost Driver | A factor that influences the cost of an activity, such as labor hours or machine usage. |
| Activity Ratios | Financial ratios measuring how efficiently a company uses its assets to generate revenue. |
| Actual Deferral & Actual Contribution Percentage Test (ADP/ACP) | A test to ensure 401(k) plans do not favor highly compensated employees. |
| Actuarial Gain Or Loss | The difference between the expected and actual outcomes of pension plan assumptions, affecting the plan’s financial status. |
| Term | Definition |
|---|---|
| Actuarial Life Table | A table showing the probability of death or survival at various ages, used in life insurance calculations. |
| Actuarial Science | The discipline that applies mathematical and statistical methods to assess and manage risk in insurance, finance, and other industries. |
| Ad Valorem Tax | A tax based on the value of property or an asset. |
| Add-On Interest | Interest calculated on the original principal amount of a loan and added to it, resulting in a higher total interest charge. |
| Additional Child Tax Credit | A tax credit for families with more than two qualifying children. |
| Additional Paid-In Capital | The amount received from the sale of stock in excess of its par value. |
| Addition Rule for Probabilities | A rule used to calculate the probability of either of two events occurring. |
| Adhesion Contract | A contract where one party has substantially more power than the other in setting the terms. |
| Adjudication | The formal legal process of resolving a dispute. |
| Adjustable Life Insurance | Life insurance that allows the policyholder to change the death benefit, premium, and cash value. |
| Adjustable-Rate Mortgage (ARM) | A mortgage with an interest rate that adjusts periodically based on a benchmark. |
| Adjusted Closing Price | The closing price of a stock adjusted for corporate actions like stock splits and dividends. |
| Adjusted EBITDA | Earnings before interest, taxes, depreciation, and amortization, adjusted for certain non-recurring or unusual items. |
| Adjusted Funds From Operations (AFFO) | A measure of a real estate investment trust’s (REIT) profitability, calculated by adjusting funds from operations (FFO). |
| Adjusted Gross Income (AGI) | Gross income minus certain deductions, used to calculate taxable income. |
| Adjusted Present Value (APV) | A valuation method that calculates the present value of a project’s free cash flows plus the present value of any financing side effects. |
| Adjusting Journal Entry | An accounting entry made at the end of an accounting period to correct errors or to account for accruals and deferrals. |
| Administrative Expenses | Costs related to the general management and administration of a business. |
| Administrative Services Only (ASO) | An arrangement where an employer contracts with a third-party administrator to handle certain administrative tasks related to employee benefits. |
| Advance/Decline Line (A/D) | A technical indicator that tracks the number of stocks that have advanced in price versus those that have declined. |
| Advance Payment | A payment made before goods or services are received. |
| Advanced Internal Rating-Based (AIRB) | A sophisticated approach used by banks to estimate credit risk. |
| Adverse Possession | A legal principle that allows someone to acquire legal ownership of property by possessing it for a certain period of time. |
| Adverse Selection | A situation where one party in a transaction has more information than the other party. |
| Advertising Budget | A plan for how much money a company will spend on advertising. |
| Affiliate | A company that is related to another company, often through ownership or control. |
| Affiliate Marketing | A marketing strategy where affiliates earn a commission for promoting a company’s products or services. |
| Affiliated Companies | Companies that are related to each other, often through common ownership or control. |
| Affirmative Action | Policies that aim to increase opportunities for historically disadvantaged groups. |
| Affordable Care Act | A healthcare reform law in the United States. |
| After-Tax Real Rate of Return | The return on an investment after accounting for taxes and inflation. |
| After-Hours Trading | Trading that occurs outside of regular stock market hours. |
| After-Tax Contribution | A contribution to a retirement account made with money that has already been taxed. |
| After-Tax Income | Income remaining after taxes have been deducted. |
| Agency Bond | A bond issued by a government-sponsored enterprise or federal agency. |
| Agency by Necessity | An agency relationship created by law when one person is compelled to act on behalf of another. |
| Agency Costs | The costs associated with the separation of ownership and control in a company. |
| Agency Problem | A conflict of interest that can arise between the agent and the principal in an agency relationship. |
| Agency Theory | A theory that explains the relationship between agents and principals. |
| Agent | A person who acts on behalf of another person (the principal). |
| Aggregate Demand | The total demand for goods and services in an economy. |
| Aggregate Stop-Loss Insurance | A type of insurance that protects employers against large, unexpected healthcare claims. |
| Aggregate Supply | The total supply of goods and services in an economy. |
| Aggregation | The process of combining individual data or information into summary form. |
| Aggressive Investment Strategy | An investment strategy that seeks high returns by taking on higher levels of risk. |
| Agribusiness | The business of agricultural production and related industries. |
| Air Waybill (AWB) | A document that accompanies goods shipped by air. |
| Aktiengesellschaft (AG) | A German term for a public company limited by shares. |
| Alan Greenspan | Former Chairman of the Federal Reserve. |
| Aleatory Contract | A contract where the outcome depends on chance. |
| Algorithmic Trading | Trading that uses computer algorithms to execute trades. |
| All Risks | A type of insurance that covers all perils except those specifically excluded. |
| Allocated Loss Adjustment Expenses (ALAE) | Expenses incurred in the investigation, settlement, and defense of insurance claims that can be assigned to a specific claim. |
| Allocational Efficiency | A state of the economy where resources are allocated to their most valued uses. |
| Allotment Definition, Reasons for Raising Shares, IPOs | Allotment refers to the distribution of shares in an IPO. Companies raise shares for capital, while IPOs offer access to public markets. |
| Allowance for Bad Debt | A contra-asset account that reduces the carrying value of accounts receivable for potential uncollectible amounts. |
| Allowance for Credit Losses | A valuation account used to estimate the portion of outstanding loans that may not be repaid. |
| Allowance for Doubtful Accounts | Same as Allowance for Bad Debt. |
| Alpha | A measure of an investment’s performance relative to a benchmark. |
| Alphabet Stock | Stock of Alphabet Inc., the parent company of Google. |
| Altcoin | Any cryptocurrency other than Bitcoin. |
| Alternative Depreciation System (ADS) | A depreciation method used for certain types of property. |
| Alternative Investment | An investment that is not considered a traditional asset, such as real estate, private equity, or hedge funds. |
| Alternative Minimum Tax (AMT) | A separate tax system that calculates tax liability in a different way than the regular tax system. |
| Alternative Trading System (ATS) | A trading system that is not a traditional stock exchange. |
| Altman Z-Score | A formula used to predict the probability of a company going bankrupt. |
| Always Be Closing (ABC) | A sales technique that emphasizes the importance of closing the deal. |
| Amalgamation | The merging of two or more companies. |
| Amended Return | A tax return filed to correct errors on a previously filed return. |
| American Depositary Receipt (ADR) | A certificate representing ownership in shares of a foreign company trading on a U.S. exchange. |
| American Depositary Share (ADS) | The actual share representing ownership in a foreign company, held by a depositary bank, underlying the ADR. |
| American Dream | A belief that in the U.S., hard work and determination can lead to upward mobility and prosperity. |
| American Express Card | A charge card and credit card issued by American Express. |
| American Opportunity Tax Credit (AOTC) | A tax credit for qualified education expenses. |
| American Option | An option that can be exercised at any time up to its expiration date. |
| Term | Definition |
|---|---|
| American Stock Exchange (AMEX) | A stock exchange in the United States, now called NYSE American. |
| Americans with Disabilities Act (ADA) | A U.S. law that prohibits discrimination based on disability. |
| Amortizable Bond Premium | The difference between the purchase price of a bond and its face value, which is amortized over the life of the bond. |
| Amortization of Intangibles | The systematic reduction of the value of intangible assets over their useful life. |
| Amortization Schedule | A table showing the breakdown of loan payments into principal and interest over time. |
| Amortized Bond | A bond whose premium or discount is amortized over its life. |
| Amortized Loan | A loan that is repaid in regular installments, with each payment covering both principal and interest. |
| Amsterdam Stock Exchange (AEX) | A stock exchange in Amsterdam, Netherlands. |
| Analysis of Variance (ANOVA) | A statistical test used to compare the means of two or more groups. |
| Android Operating System | A mobile operating system developed by Google. |
| Anchoring | A cognitive bias where individuals rely too heavily on the first piece of information they receive. |
| Anchoring and Adjustment | A heuristic where people start with an anchor and adjust it to reach a conclusion. |
| Angel Investor | An individual who provides capital to startups, typically in exchange for convertible debt or ownership equity. |
| Animal Spirits | A term used by Keynes to describe the psychological factors that drive economic activity. |
| Annual Equivalent Rate (AER) | The annual rate of interest that takes into account the effect of compounding. |
| Annual General Meeting (AGM) | A yearly meeting of a company’s shareholders. |
| Annual Percentage Rate (APR) | The annual rate of interest on a loan, not including any fees. |
| Annual Percentage Yield (APY) | The annual rate of return on an investment, taking into account the effect of compounding. |
| Annual Report | A report issued by a company each year, detailing its financial performance. |
| Annual Return | The return on an investment over a one-year period. |
| Annual Turnover | The total value of securities traded on a stock exchange during a year. |
| Annualize | To convert a rate of return or other metric to an annual basis. |
| Annualized Income | Income received over a period of less than one year, converted to an annual equivalent. |
| Annualized Income Installment Method | A method of calculating estimated tax payments based on annualized income. |
| Annualized Rate of Return | The rate of return on an investment over a period of less than one year, converted to an annual equivalent. |
| Annualized Total Return | The total return on an investment over a period of less than one year, converted to an annual equivalent. |
| Annuitant | The person who receives payments from an annuity. |
| Annuitization | The process of converting a lump sum into a stream of payments. |
| Annuity | A financial product that pays a stream of income over a specified period. |
| Annuity Due | An annuity where payments are made at the beginning of each period. |
| Annuity Table | A table showing the present value or future value of an annuity. |
| Anomaly | A deviation from the expected pattern or behavior. |
| Anti-Dilution Provision | A clause in a contract that protects investors from having their ownership diluted. |
| Anti-Dumping Duty | A tariff imposed on imported goods that are sold at less than fair value. |
| Anti Money Laundering (AML) | Laws and regulations aimed at preventing money laundering. |
| Anticipatory Breach | A breach of contract that occurs before the performance is due. |
| Antitrust | Laws that promote competition and prevent monopolies. |
| Appellate Courts | Courts that hear appeals from lower courts. |
| Applicable Federal Rate (AFR) | The interest rate used by the IRS for certain tax purposes. |
| Application Programming Interface (API) | A set of rules and specifications that allow software applications to communicate with each other. |
| Application-Specific Integrated Circuit (ASIC) | An integrated circuit designed for a specific application. |
| Applied Economics | The application of economic theory to real-world problems. |
| Appraisal | An estimate of the value of an asset. |
| Appraisal Costs | The costs associated with obtaining an appraisal. |
| Appraisal Management Company (AMC) | A company that manages the appraisal process for lenders. |
| Appreciation | An increase in the value of an asset. |
| Appropriation | The act of setting aside funds for a specific purpose. |
| Appropriation Account | An account used to record appropriations. |
| Aptitude Test | A test designed to measure a person’s ability to learn or perform a particular task. |
| Arab League | A regional organization of Arab states. |
| Arbitrage | The simultaneous purchase and sale of an asset in different markets to profit from price differences. |
| Arbitrage Pricing Theory (APT) | A financial model that explains asset prices based on multiple factors. |
| Arbitrageur | A person who engages in arbitrage. |
| Arbitration | A method of resolving disputes outside of court. |
| Arc Elasticity | A measure of price elasticity of demand that calculates the change in quantity demanded over a range of prices. |
| Arithmetic Mean | The average of a set of numbers. |
| Arm’s Length Transaction | A transaction between unrelated parties conducted as if they were independent. |
| Arms Index (TRIN) | A technical indicator that measures the ratio of advancing stocks to declining stocks. |
| Aroon Indicator | A technical indicator used to identify trends in price movements. |
| Aroon Oscillator | A technical indicator derived from the Aroon Indicator. |
| Arrow’s Impossibility Theorem | A theorem that states that it is impossible to create a perfect voting system. |
| Article 50 | A clause in the Treaty on European Union that allows a member state to withdraw from the EU. |
| Articles of Association | The document that sets out the rules and regulations governing a company (UK). |
| Articles of Incorporation | The document that forms a corporation (US). |
| Artificial Intelligence | The ability of a computer or machine to mimic human intelligence. |
| Ascending Channel | A chart pattern characterized by two upward-sloping trendlines. |
| Ascending Triangle | A chart pattern characterized by a horizontal resistance line and an upward-sloping support line. |
| Asia-Pacific Economic Cooperation (APEC) | A regional economic forum of 21 Pacific Rim economies. |
| Asian Development Bank | A regional development bank. |
| Asian Financial Crisis | A financial crisis that affected several Asian countries in 1997. |
| Asian Infrastructure Investment Bank (AIIB) | A multilateral development bank focused on infrastructure investment in Asia. |
| Ask | The price at which a seller is willing to sell a security. |
| Assemble to Order (ATO) | A manufacturing strategy where products are assembled after an order is received. |
| Term | Definition |
|---|---|
| Assessed Value | The value assigned to a property by a tax assessor for tax purposes. |
| Asset | Anything of value that is owned by an individual or business. |
| Asset Allocation | The process of distributing investments among different asset classes. |
| Asset-Backed Commercial Paper (ABCP) | Short-term debt securities backed by assets. |
| Asset-Backed Security (ABS) | A financial security backed by a pool of assets, such as loans or leases. |
| Asset-Based Approach | A valuation method that values a business based on the value of its assets. |
| Asset-Based Lending | A type of lending where the loan is secured by the borrower’s assets. |
| Asset Class | A group of assets with similar characteristics, such as stocks, bonds, and real estate. |
| Asset Coverage Ratio | A measure of a company’s ability to cover its liabilities with its assets. |
| Asset Financing | Methods used by companies to fund the acquisition of assets. |
| Asset-Liability Committee (ALCO) | A committee responsible for managing the assets and liabilities of a financial institution. |
| Asset/Liability Management | The process of managing assets and liabilities to minimize risk and maximize returns. |
| Asset Management | The process of managing investments on behalf of individuals or institutions. |
| Asset Management Company (AMC) | A company that manages investment funds. |
| Asset Protection | Strategies used to protect assets from creditors and lawsuits. |
| Asset Retirement Obligation | A legal obligation to decommission and restore a property at the end of its useful life. |
| Asset Swap | A transaction where two parties exchange cash flows based on different assets. |
| Asset Swapped Convertible Option Transaction (ASCOT) | A complex financial transaction involving convertible bonds and options. |
| Asset Turnover Ratio | A measure of how efficiently a company uses its assets to generate revenue. |
| Asset Valuation | The process of determining the fair market value of an asset. |
| Assets Under Management (AUM) | The total market value of assets managed by an investment firm. |
| Assignment | The transfer of rights or obligations from one party to another. |
| Assortment Strategies | Strategies used by retailers to determine the mix of products to offer. |
| Assumable Mortgage | A mortgage that can be transferred from the seller to the buyer. |
| Assurance | A level of certainty provided by an audit or other review engagement. |
| Assurance Services | Independent professional services that improve the quality of information for decision makers. |
| Asymmetric Information | A situation where one party in a transaction has more information than the other party. |
| At Par | A bond trading at its face value. |
| Atomic Swaps | A cryptocurrency transaction that allows the exchange of one cryptocurrency for another without using a centralized exchange. |
| At The Money | An option whose strike price is equal to the current price of the underlying asset. |
| Attorney-in-Fact | A person authorized to act on behalf of another person. |
| Attribution Analysis | A process used to determine the factors that contributed to the performance of an investment portfolio. |
| Attrition | The gradual reduction in the size of a workforce through voluntary departures. |
| Auction Market | A market where prices are determined by competitive bidding. |
| Audit | An independent examination of financial statements. |
| Audit Committee | A committee of a company’s board of directors that oversees the audit process. |
| Audit Risk | The risk that an auditor will express an inappropriate opinion on financial statements. |
| Auditor | A person who conducts an audit. |
| Auditor’s Opinion | The opinion expressed by an auditor on the fairness of financial statements. |
| Auditor’s Report | A report issued by an auditor summarizing the findings of an audit. |
| Augmented Product | The core product plus any additional features or benefits. |
| Austerity | Measures taken by a government to reduce spending or increase taxes. |
| Australian Securities Exchange (ASX) | A stock exchange in Australia. |
| Autarky | Economic self-sufficiency. |
| Authorized Stock | The maximum number of shares that a company is allowed to issue. |
| Autocorrelation | The correlation of a time series with its own past values. |
| Automated Clearing House (ACH) | An electronic funds transfer system. |
| Automated Customer Account Transfer Service (ACATS) | A system for transferring customer accounts between brokerage firms. |
| Automated Teller Machine (ATM) | A machine that allows customers to perform banking transactions. |
| Automatic Bill Payment | A service that allows customers to automatically pay bills. |
| Automatic Premium Loan | A loan taken out against the cash value of a life insurance policy to pay premiums. |
| Automatic Stabilizer | A government program that automatically stabilizes the economy. |
| Autonomous Consumption | Consumption that does not depend on income. |
| Autonomous Expenditure | Government spending that does not depend on income. |
| Autoregressive | A statistical model that uses past values of a variable to predict future values. |
| Autoregressive Integrated Moving Average (ARIMA) | A statistical model used for forecasting time series data. |
| Available Balance | The amount of money in an account that can be withdrawn. |
| Available-for-Sale Security | A security that is not held for trading or held to maturity. |
| Average Age Of Inventory | A measure of how long it takes a company to sell its inventory. |
| Average Annual Growth Rate (AAGR) | The average rate at which a variable grows over a period of time. |
| Average Annual Return (AAR) | The average return on an investment over a period of time. |
| Average Inventory | The average level of inventory held by a company over a period of time. |
| Average Collection Period | The average amount of time it takes a company to collect payment from its customers. |
| Average Cost Basis | The average cost of an investment, including any commissions or fees. |
| Average Cost Method | An inventory valuation method that uses the average cost of goods available for sale. |
| Average Daily Balance Method | A method of calculating interest on a credit card balance. |
| Average Daily Rate (ADR) | A metric used in the hospitality industry to measure the average revenue generated per occupied room per day. |
| Average Daily Trading Volume (ADTV) | The average number of shares traded per day. |
| Average Directional Index (ADX) | A technical indicator used to measure the strength of a trend. |
| Average Life | The average length of time that a bond or other financial instrument is expected to be outstanding. |
| Average Outstanding Balance | The average amount of money owed on a loan or credit card. |
| Average Propensity to Consume | The proportion of income that is spent on consumption. |
| Average Return | The average return on an investment over a period of time. |
| Average Selling Price (ASP) | The average price at which a product is sold. |
| Average True Range (ATR) | A technical indicator used to measure market volatility. |
| Axe | A firm bid or offer in the financial markets. |