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Investing, Financial, Trading and Crypto Terms - Dictionary (A)

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Investing/Finance/Trading/Crypto Dictionary
Accumulated distribution: A sum of all the dividends paid out by a company to its shareholders over a period of time.
Accumulation fund: A type of mutual fund or unit trust where dividends are automatically reinvested back into the fund, rather than paid out to the investor.
Acquisition: The process of acquiring another company or business by purchasing its assets or shares.
Active managers: Investment professionals who actively buy and sell securities in an effort to generate returns that outperform a benchmark or index.
ADR: American Depositary Receipt, a type of security that represents ownership in a foreign company, traded in the United States.
Aggregate demand: The total amount of goods and services demanded in an economy at a given overall price level and in a given time period.
Aggregate supply: The total amount of goods and services that firms are willing to produce in an economy at a given overall price level in a given time period.
Alerts: A feature in trading and investment platforms that notify users of certain events or changes in the market, such as stock price movements or news announcements.
Alpha: A measure of the excess return of an investment relative to a benchmark, often used to evaluate the performance of actively managed portfolios.
Amortisation: The process of gradually reducing the value of an asset, such as a loan or bond, through regular payments over a period of time.
Annual general meeting (AGM): A mandatory meeting of a company's shareholders to approve the previous year's financial statements and elect the board of directors.
Annualized return: The rate of return on an investment over a given period of time, typically expressed as a percentage.
Arbitrage: The practice of buying and selling assets in different markets or in different forms in order to take advantage of price differences.
Asset classes: Categories of financial assets, such as stocks, bonds, and real estate, that have different characteristics and are subject to different risks.
Assets: Anything that has value and can be owned, including cash, investments, real estate, and personal property.
At the money: A financial term used to describe an option contract that has a strike price that is roughly equal to the current market price of the underlying asset. An option that is "at the money" has little intrinsic value and will mainly be influenced by changes in implied volatility.
Auction market: A market where securities or other financial instruments are bought and sold through open competitive bidding, as opposed to a market where prices are determined by specialists or market makers. Examples of auction markets include the New York Stock Exchange (NYSE) and the NASDAQ.
Authorized participant: A participant in an exchange-traded fund (ETF) who is authorized by the ETF issuer to create or redeem shares in the fund. Authorized participants play a crucial role in keeping the ETF's market price in line with its net asset value (NAV).
Automated trading: The use of computer programs and algorithms to execute trades automatically without human intervention. Automated trading systems (ATS) can be used for both buy and sell orders and can be based on technical or fundamental analysis.
Averaging down: A trading strategy where an investor buys more of a security at a lower price in order to lower the average cost of their position. This can be done to reduce the overall risk of a position, but also means that the investor is effectively increasing their position in a losing trade.