Glossary

This glossary is available to download as a PDF

1. A
2. B
3. C
4. D
5. E
6. F
7. G
8. H
9. I
10. J
11. K
12. L
13. M
14. N
15. O
16. P
17. Q
18. R
19. S
20. T
21. U
22. V
23. W
24. X
25. Y
26. Z

A

Abandon

Where an option holder chooses not to exercise his option.

Absolute Risk

The volatility of total returns.

Acceptance

Short-term debt instrument, drawn on a bank for future payments.

Accreting Loan

A loan where the principal increase in stages as capital is drawn down.

Accrued Interest

Interest that has been earned but not yet paid.

Actuary

A statistician who calculates risk. Usually employed by an insurance company.

A.D.R.

American Depositary Receipts, see Depositary Receipts

A.I.M.

Alternative Investment Market. For small young and growing companies opened by the Stock Exchange in June 1995.

American Style

An option that may be exercised into its underlying instrument on any business day until expiry.

Amortising Loan

A loan where the principal reduces in stages as capital is repaid.