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ARR
See: Average rate of return
Articles of incorporation
Legal document establishing a corporation and its structure and purpose.
Asian currency units (ACUs)
Dollar deposits held in Singapore or other Asian centers.
Asian option
Option based on the average price of the underlying assets during the life of the option.
Ask
This is the quoted ask, or the lowest price an investor will accept to sell a stock. Practically speaking, this is
the quoted offer at which an investor can buy shares of stock; also called the offer price.
Asked price
Used in context of general equities. Price at which a security or commodity is offered for sale on an
exchange or in the O.T.C. Market.
Asked to bid/offer
Used in context of general equities. Usually a seller (buyer) looking to aggressively sell (buy) stock, usually
asking for a capital commitment from an investment bank.
Asset
Any possession that has value in an exchange.
Asset/equity ratio
The ratio of total assets to stockholder equity.
Asset/liability management
Also called surplus management, the task of managing the funds of a financial institution to accomplish the
two goals of a financial institution: (1) to earn an adequate return on funds invested and (2) to maintain a
comfortable surplus of assets beyond liabilities.
Asset activity ratios
Ratios that measure how effectively the firm is managing its assets.
Asset allocation decision
The decision regarding how an institutions funds should be distributed among the major classes of assets in
which it may invest.
Asset-backed security
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