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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…


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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…


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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…


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Aftermarket:

The Secondary Market. Used in reference to trading in a new issue. See also: Effective Date. Secondary Market: The trading in existing or out-standing securities (vs. new issues). Secondary market transactions take place on exchanges or over-the-counter. Effective Date: The day on which the SEC (Securities Exchange Commission) permits a Read more…


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Advertisement:

Advertisement: A written or electronic communication in the public media such as newspapers, magazines, radio, and television addressed to an unknown audience. Contrast with: Sales Literature. Note: this sounds like any old advertisement placement. When we move on to formulas and special regulations you’ll see the advertisement in the financial Read more…


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Administrator.

Administrator: (1) A person appointed by the court to handle the assets and liabilities of a decedent, typically when the deceased died without a will (interstate). (2) The official or agency that is empowered to supervise or conduct the Uniform Securities Act in each state.