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Accounts Payable
Amounts owing on open account to creditors for goods and services


Accounts Receivable
Money owed to a business for merchandise or services sold on open account.


Accrual Basis
Accounting method whereby income and expense items are recognized as they are earned or incurred, even though they may not have been received or actually paid in cash.


Accrual Bonds
Bonds that do not make periodic interest payments, but instead accrue interest until the bond matures. Also known as zero-coupon bonds.


Accrued Interest
Interest that has accumulated between the most recent payment and the sale of a security, i.e. deemed to be earned on a security but not yet paid to the investor. At the time of the sale, the buyer pays the seller the security’s price plus accrued interest.


Acquisition
One company taking over controlling interest in another company.

ADR (American Depositary receipts)
Used for the listing of Telecom Italia ordinary and savings shares on the NYSE (New York Stock Exchange). The ordinary and savings ADS (American Depositary Shares) representing, respectively, 10 ordinary shares and 10 savings shares of Telecom Italia.

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After-tax Return
An investment's return after all income taxes have been deducted.


Alpha
Measure of risk-adjusted performance. An alpha is usually generated by regressing the security or mutual fund's excess return on benchmark index’s excess return.



AMEX (American Stock Exchange)
One of the main US Stock Exchange. The second one is the New York Stock Exchange (NYSE).

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Amortization
Accounting procedure that gradually reduces the cost value of a limited life or intangible asset, such as goodwill, through periodic charges to income.


Annual Meeting
Once-a-year meeting when the managers of a company report to stockholders on the year's results, and the board of directors stands for election for the next year.


Annual Report

Yearly record of a corporation's financial condition that must be distributed to shareholders. Included in the report is a description of the company's operations as well as its balance sheet and income statement.


Annuity
A long-term investment that provides tax-deferred growth and income at regular intervals for as long as you specify.


Arbitrage

Profiting from differences in price when the same security, currency, or commodity is traded on two or more markets


Ask Price

The price at which a market maker is willing to sell a specified quantity of a particular security.


Asset
Anything having commercial or exchange value that is owned by a business, institution, or individual.


Asset Allocation

Apportioning of investment funds among categories of assets, such as cash equivalents, stocks, fixed-income investments, and such tangible assets as real estate, precious metals, and collectibles. Asset allocation affects both risk and return.


Assets Under Management

The value of the assets that a company manages, but does not own.


Authorized Shares

Maximum number of shares of any class a company may legally create under the terms of its articles of incorporation. Normally, a corporation provides for future increases in authorized stock by vote of the stockholders.