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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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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:

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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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:

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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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…


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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.

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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Adjustment Bond:

Adjustment Bond: See Income Bond; Income Bond: A corporate debt issue that pays interest only when, and if, the company has income. Also called an adjustment bond. Note: Corporate meaning issued or created by a corporation. Debt meaning a loan. Interest payment are monies paid in exchange for this loan. Read more…

Additional Takedown.

Additional Takedown: A portion of the underwriting spread for a municipal issue defined as total takedown less concession. Municipal Issue aka as municipal bond or issuing municipal debt . Concession: A part of the underwriting spread that the selling group receives from the syndicate for helping to sell a new Read more…


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Additional Bonds Test:

Additional Bonds Test: A requirement that before additional bonds, which will be secured by assets or revenues already pledged to existing bonds, can be issued, that specific financial requirements must be met. Generally, the main requirement is that debt service coverage for the original and new bonds must be at Read more…