Abnormal Returns refer to the returns on an investment that differ from the expected return based on its risk profile or market conditions. This measure is used to assess the performance of a security or portfolio against a benchmark, often…

Accelerated Share Repurchase (ASR) is a financial strategy used by companies to repurchase their own shares from the market at an accelerated pace, typically involving a large volume of shares. In an ASR transaction, a company enters into a contract…

Accelerated Vesting refers to a provision in employee benefit plans, particularly stock option plans, that allows employees to gain full ownership of their benefits at an expedited rate under specific circumstances. This can occur in scenarios such as company mergers,…

An accountant is a professional responsible for managing financial records, ensuring compliance with laws and regulations, and providing financial advice to individuals and organizations. Accountants analyze financial information, prepare reports, and help businesses make informed financial decisions. They may specialize…

Accounting Profit refers to the total revenue of a company minus the explicit costs incurred in earning that revenue. Explicit costs are direct, out-of-pocket expenses such as wages, rent, and materials. Accounting profit is used in financial statements and reflects…

An Accredited Investor is an individual or entity that meets certain financial criteria established by the Securities and Exchange Commission (SEC) to qualify for investing in higher-risk, unregistered securities. The primary criteria include: Individuals with a net worth exceeding $1…

Accrued Interest refers to the interest that has accumulated on a loan or bond since the last payment was made but has not yet been paid. This interest is recognized in financial statements and can affect the value of investments.For…

Accrued Revenue refers to income that has been earned by a company for providing goods or services, but has not yet been received or recorded in the financial statements. This revenue is recognized in the accounting period when it is…

The Acid Test Ratio, also known as the Quick Ratio, is a financial metric used to assess a company's short-term liquidity position. It measures a company's ability to pay off its current liabilities without relying on the sale of inventory.…

Active stock-picking refers to the investment strategy where an investor or fund manager selects individual stocks to buy and sell with the goal of outperforming a benchmark index. This approach involves extensive research and analysis to identify stocks that are…

Activist Investing refers to a strategy where investors, typically hedge funds or other investment firms, buy significant stakes in publicly traded companies with the intent of effecting change within the company. Activist investors often advocate for changes in management, corporate…

Adjusted Gross Income (AGI) is a measure of income that is calculated from your gross income and used to determine how much of your income is taxable. It includes all income sources, such as wages, dividends, capital gains, and retirement…

Affiliate Marketing is a performance-based marketing strategy where an individual or business (the affiliate) earns a commission by promoting another company's products or services. Affiliates use various methods, such as blogs, social media, or websites, to drive traffic to the…

After Repair Value (ARV) refers to the estimated value of a property after all necessary repairs and improvements have been completed. This figure is often used by real estate investors to determine the potential profitability of a property investment, particularly…

After-Hours Trading refers to the buying and selling of securities outside of regular trading hours, typically conducted on electronic communication networks (ECNs). Regular trading hours for major stock exchanges, such as the New York Stock Exchange (NYSE) and NASDAQ, are…