Jourgons Essay

8888 WordsJul 16, 201236 Pages
A 1. Annuity: The term annuity is used in finance theory to refer to any terminating stream of fixed payments over a specified period of time 2. Annuity due: An annuity with payments made at the beginning of each period. Also called advance payment annuity. 3. Asymmetric information: Information asymmetry deals with the study of decisions in transactions where one party has more or better information than the other. This creates an imbalance of power in transactions which can sometimes cause the market breakdown. 4. Activity ratio An indicator of how rapidly a firm converts various accounts into cash or sales. In general, the sooner management can convert assets into sales or cash, the more effectively the firm is being run. 5. Asset-Backed Security (ABS): Debt obligation repaid from the future cash flows of different types of property or rights. This type of security often carries credit enhancements that limit investor exposure to the credit risk of the seller. 6. Arbitrage portfolio: A portfolio that provides inflow in some circumstances and requires no out flows under any circumstances 7. Abnormal return: The difference between the return on a stock (or entire portfolio) and the performance of an index, such as the S&P 500. The abnormal return is equal to the market return the normal return 8. Actuary: A specialist in the mathematics of risk, especially as it relates to insurance calculations such as premiums, reserves, dividends, and insurance and annuity rates. They work for insurance companies to evaluate applications based on risk. 9. Amortization: The repayment of a loan by installments. Amortization is the gradual repayment of a debt over a period of time, such as monthly payments on a mortgage loan or credit card balance 10. Annual report: Audited document required by the SEC and sent to a public company's or mutual fund's

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