Amortization

Amortization: (1) Accounting procedure which gradually reduces the book value of an intangible asset through periodic charges to income; similar to depreciation for fixed assets. See also: Capitalize. (2) Method of reducing a taxpayer’s cost basis in a bond purchased at a premium. (vs. Accretion.) (3) Reduction of debt through Read more…

Alpha

Alpha: a statistical measure of a security’s price volatility caused by factors other than the stock market as a whole. (vs. Beta) Beta: A statistical measure of the price volatility of a of a security in relation to the entire stock market’s volatility. For example, a Beta of 2.0 indicates Read more…

Agency:

Agency: (1) Government Securities issued by entities other the U.S. Treasurey (2) A transaction in which the broker-dealer acts as agent (Broker). See also. Agent. Agent: A securities firm acting on behalf of a client. The agent act as intermediary between buyer and seller, undertaking no financial risk, and, and Read more…