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: 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…


All-or- none (AON)

(1) A type of ( securities) order where the client wants the entire order executed or none of it. (2) A type best efforts underwriting in which the issuer will sell the entire amount or cancel the entire issue. ( sales of new securities).


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…



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…



Finance: Advisory Fee:

Advisory Fee: The fee paid to an investment adviser ( portfolio manager) as compensation for managing a portfolio of securities. The fee is usually based on a percentage of assets under management or on an incentive schedule, providing compensation based on a comparison fund performance to a particular index or Read more…


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…


Advance Refunding.

Advance Refunding: A method of eliminating a bond as an obligation of the issuer. This is accomplished by issuing a new bond issue and using the proceeds to purchase government obligations which will be escrowed and used to provide debt service until maturity of the original issue ( escrowed to Read more…


Ad Valorem Tax:

Ad Valorem Tax: A tax based on the assessed value of real property. Assessed Valuation: The value of real estate is used for tax purposes. Real Property: Real estate such as land and/or buildings. Note: there are some basic formulas used to calculate the ad valorem tax of your property Read more…


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.

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