Describes the difference between a
portfolio's performance vs. the average market performance over a
set period of time
ABSOLUTE ADVANTAGE
A country is said to have an
absolute advantage if its output per unit of inputs of all goods is
larger than that of another country
ACCOUNT
A record of financial transactions
for an individual at a at a bank or a brokerage company
ACCOUNT BALANCE
The dollar amount currently
remaining in an account
ACCOUNT EXECUTIVE
An individual who usually works
for a brokerage company and has the legal power to buy or sell
financial instruments on behalf of a client
ACCOUNT STATEMENT
A summary of all transactions and
positions (long and short) between a broker/dealer and a client
ACCOUNTS PAYABLE
Money owed to customers or
suppliers
ACCOUNTS
RECEIVABLE
Money owed by customers
ACCREDITED
INVESTOR
Accredited investors must
have a combined net worth with their spouse in excess of $1,000,000,
or individual income for the past two years in excess of $200,000,
or have joint income with their spouse in excess of $300,000 for the
past two years or be a director or executive officer of the company
ACTIVITY
The volume of financial
instruments over a given period of time
ADJUSTABLE RATE
An interest rate that is adjusted
periodically, usually according to a standard market rate outside
the control of the bank or savings institution
AFFILIATE
Relationship between two
companies when one company owns substantial interest of another
company
AFTER HOURS
TRADING
Trading after regular
trading hours on organized exchanges
AGENT
An agent acts as intermediary between buyer
and seller, taking no financial risk personally or as a firm, and
charging a commission for the service
AGGREGATE DEMAND
The total demand for goods and
services produced in the economy over a period of time. It includes
consumer demand of durable and nondurable items, investment spending
by companies on capital goods, government spending on publicly
provided goods and services, and the difference between exports and
imports of goods and services of the country
AGGREGATE SUPPLY
A measure of the total supply of
goods and services produced within the economy from domestic sources
that are available to meet aggregate demand
ALL OR NONE
A Futures order that instructs
the broker to either fill the whole order or not at all
ALPHA
A coefficient measuring the risk-adjusted
performance of a currency or stock option. A large alpha indicates
that the underlying has performed better than would be predicted
given its beta (volatility)
ALTERNATIVE
INVESTMENTS
Investments in hedge
funds that pursue strategies uncommon in mutual funds such as
long-short equity, event driven, statistical arbitrage, fixed income
arbitrage, convertible arbitrage, short bias, global macro, and
equity market neutral
AMERICAN OPTION
An option that may be exercised
at any time prior to expiration, as opposed to a European option
that can only be exercised on a specific date (usually at
expiration)
AMEX
American Stock Exchange
AMMAN STOCK
EXCHANGE
The formal securities
market in Jordan
AMORTIZATION
The repayment of a loan by
installments
ANALYST
An employee of a brokerage house
who studies companies and makes buy/sell recommendations on various
instruments
ANNOUNCEMENT DATE
Date when particular news
concerning a company is announced to the public
ANNUAL REPORT
Yearly record of a company's
financial condition. It includes the firm's operations, balance
sheet, income statement, and cash flow statement
ARBITRAGE
The simultaneous purchase and
sale of the same (or equivalent) financial instrument on different
markets to profit from price discrepancies
ASK
The price at which the currency or instrument
is offered
ASSET
Any possession that has value
ASSET BACKED
SECURITY
A security that is
collateralized by loans, leases, receivables, or installment
contracts on personal property, not real estate.
ASSET MANAGEMENT
ACCOUNT
Account at a brokerage
house, bank, or savings institution that integrates banking services
and brokerage features
AT BEST
Instructions given to a dealer to
buy or sell the currency or instrument at the best rate that can be
obtained
AT OR BETTER
Instructions given to a dealer to
buy or sell the currency or instrument at a specific rate or better
AT PAR
A price equal to nominal or face
value of a security
AT THE MARKET
A buy or sell order that must be
executed at the best price currently available in the market. These
are also called market orders
AT-THE-MONEY
An option whose strike/exercise
price is equal to or near the current market price of the underlying
instrument
AUDIT
An examination of a company's accounting
records and books conducted by an outside professional in order to
determine whether the company is maintaining records according to
generally accepted accounting principles
AWAY FROM THE
MARKET
On limit orders, a buy
order away from the market would be placed lower than the current
market price, and sell orders would be placed higher than the
current market price. Such orders are usually held to be executed
later
Risk Disclaimer: Trading in Contracts for Difference (CFDs) carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. Be aware of all risks associated with trading CFDs and seek advice from an independent financial advisor if you have any doubts. Please read the full Risk Disclosure statement.
International Capital Markets Brokers does not provide services to residents of the USA, European Union, United Kingdom, Iran, and the Democratic Republic of Korea.