Accounts Payable
A file or account sub-ledger that records amounts that a person or company owes to suppliers, but has not paid yet (a form of debt),
Accounts receivable
A file or account sub-ledger that records amounts that customers or companies owes to a business, but has not paid yet (a form of debt), a large portion of accounts receivable are credit sales.
Acquisition
Gaining control of a corporation by securing more than 50% of outstanding shares. Some acquisitions may take place off the stock market meaning the company be acquired is private. Acquisition allows firms to expand their business by acquiring businesses that are already or will be successful.
Annuity
A financial product sold by financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time.
Annuity Due
An annuity due requires payments to be made at the beginning of the period. For example, in many lease arrangements, the first payment is due immediately and each successive payment must be made at the beginning of the month.
A type of annuity contract that delays payments of income, installments or a lump sum until the investor elects to receive them
Asset
A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.
Current Asset
A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.
Time frame: 12 months
Non Current Asset
A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.
Time Frame: 12 months +
Ask
Represents the price a seller is willing to receive to sell their security. Together with bids, asks provide a market price for securities.
Bank Stress Test
An analysis designed to test whether a bank or financial institution has the capital requirements to survive negative developments internally and externally. Stress tests focus on a few key areas; credit risk, market risk, and liquidity risk. Results are based on outcomes that may be unlikely but plausible.
Baltic Dry Index (BDI)
The Baltic Dry Index is an index that measures the changes in transportation costs of raw materials by shipping. Shipping brokers provide the Baltic exchange with prices of a number of routes in order to determine the index level. The Baltic Dry index is an important indicator for analysts as it gives insight into the levels of global supply for raw materials.
Bear/bearish
An investor with a negative outlook on the market, bearish investors may look to short stocks.
Bid
A bid is an offer made by a buyer (investor, trader, company) for a security. A bid represents the price a buyer is willing to pay for a security. Bids are then matched against asks to determine market price.
Blue Chip Stocks
Stocks which are well established with a history of sound financial performance. Blue Chip stocks are known to be solid through differing periods of economic activity. Blue Chip stocks usually include; banks, retailers and larger mining companies. Blue Chip stocks are most useful for investors who are risk averse that would like an average return on the market.
Bond
A debt related investment whereby funds are loaned to a company or government for a set interest rate and time period. Bonds are a fixed income security with dates ranging from 90 days to 30 years.
Book Value
The net asset value of a company, total assets minus intangible assets and liabilities. Book Value is an important figure in valuating companies.
Bracket Creep
Inflation causes income to rise into higher tax brackets, workers will pay higher income taxes while losing real purchasing power.
Breakout
A security that experiences a price level movement through an identified level of support/resistance. Positive breakouts result in price movements above resistance levels, while negative breakouts result in price movement below support levels. Breakouts are analysed by charts, being able to identify breakouts is an important tool for traders.
Bridge Financing
In order for an upcoming IPO to have the required funds for ongoing operations, Investment banks and financial institutions will provide the IPO with cash in return for stock from the underwriting.
Broker
An individual licensed broker or broking firm that executes market orders for securities. Brokers charge a commission on trades executed. With the introduction of online services, brokers have moved away from executing trades to analysing stocks.
Bull/Bullish
A term used describe investors with a positive outlook on markets. The term is derived from a “bull mentality” which refers to the way bulls follow each other despite knowing exactly why they are doing so.
Call
An option contract whereby the buyer has the right to acquire a determined number of an underlying security at a specified price and time.
