Administration
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Ordinary shares but with different voting rights, usually none. Occasionally companies also have 'B', 'C'shares, etc.
AB
Abbreviation of `Aktiebolag', Swedish for 'limited company'
AG
Abbreviation of 'Aktiengesellschaft', German or Austrian equivalent of a public limited company.
A/S
Abbreviation of either 'Aktieselskab', Danish public company, or 'Aksjeselskap', Norwegian public company.
AGM
Abbreviation for annual general meeting.
Account
1 The Stock Exchange period (usually two weeks) in which shares are traded.
2 Record of financial transactions disclosing amounts owed and payments received.
accumulation units
Additional units applied to a unit trust (or similar) in lieu of interest.
actuals
A physical commodity as opposed to futures.
ad valorem duty
Stamp duty payable at an amount relative to the size of the underlying transaction, as opposed to fixed duty.
allotment
The process by which the investor becomes the legal owner of the shares.
allotment letter
A letter to a potential investor advising him what shares have been allotted to him, subject to payment.
alpha coefficient
The measure by which all shares are shown to be subject to general economic trends. A movement which is peculiar to specific shares or classes of shares is the beta factor.
alpha shares
The most widely traded shares.
amber light
Advance warning of problems in a company.
ambulance stocks
Recommended investments for reviving a poorly performing portfolio.
annual general meeting
The meeting which every company must have by law. All shareholders are invited to attend, to vote on various matters and may ask questions.
Application
The process by which an investor subscribes for shares.
appropriation
Where more units in a unit trust are being bought than sold.
arb
Colloquial name for an arbitrageur.
arbitrage
Trading in the same item (e.g. stocks, currency) but in different markets with a view to making a profit on price differences.
arbitrageur
One who engages in arbitrage.
articles of association
Document which must be filed with the memorandum of association when a company is formed. The articles are effectively the contractual terms between shareholders and directors.
asset
Something of monetary value to a company, e.g. cash, debts, stock and property. Assets can be classified as current or fixed, or as tangible or intangible. (There are also other less common terms.) The opposite to an asset is a liability. Assets minus liabilities gives net assets.
asset backed
Applies to an investment whose value is represented by assets such as land or stocks, rather than an investment whose return is determined institutionally.
asset stripping
The practice of buying a company, not for its trading value, but for the value of the assets it owns. The asset stripper then sells the assets for a quick profit leaving him with a shell company.
associate member
Individual who is a member of the Stock Exchange but
who is not a partner or director of a firm which is a member.
at best
Term used in giving instructions for stock to be bought or sold at the best possible price.
auditors
Accountants engaged by the shareholders to report whether the accounts are true and fair and comply with the Companies Act.
authorised capital
The maximum amount of capital which a company's memorandum of association allows it to issue.
averaging
The practice of buying more shares when their value falls so as to reduce the impact of short-term fluctuations.
back-in
Defence to a takeover, similar to a poison pill whereby shareholders can sell their shares back to
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