Browse the glossary by topic or alphabetically.

A
Fifth letter of a NASDAQ stock symbol specifying Class A shares.
Abandonment option
The option of terminating an investment earlier than originally planned.
Abnormal returns
The component of the return that is not due to systematic influences(market wide influences). In other words, abnormal returns are abovethose predicted by the market movement alone. Related: excess returns.
ABO
See: Accumulated Benefit Obligation
Absolute priority
Rule in bankruptcy proceedings whereby senior creditors are required to be paid in full before junior creditors receive any payment.
Absorbed
Used in context of general equities. Securities are absorbed as long as there are corresponding orders to buy and sell. The market has reached the absorption point when further assimilation is impossible without an adjustment in price. See: sell the book.
Accelerated cost recovery system (ACRS)
Schedule of depreciation rates allowed for tax purposes.
Accelerated depreciation
Any depreciation method that produces larger deductions for depreciation in the early years of a assets life. Accelerated cost recovery system (A.C.R.S.), which is a depreciation schedule allowed for tax purposes, is one such example.
Accounting earnings
Earnings of a firm as reported on its income statement.
Accounting exposure
The change in the value of a firms foreign currency denominated accounts due to a change in exchange rates.
Accounting insolvency
Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books.
Accounting liquidity
The ease and quickness with which assets can be converted to cash.
Accounts payable
Money owed to suppliers.
Accounts receivable
Money owed by customers.
Accounts payable
Money owed to suppliers.
Accounts receivable
Money owed by customers