Financial lexicon

Adjustment

Adjustment of security prices so they may be validly compared, particularly in the wake of an operation involving the security (division of shares, payment of a dividend …).

Adjustment

Sharp fall on the financial markets linked to a rapid increase

All or nothing order

Limited price order whose execution is possible only if the quantity of securites is available on the market at the designated price. This kind of order is used to avoid partial executions in the case of illiquid securities.

Amex (American Stock Exchange)

Third largest stock exchange in the United States (after the New York Stock Exchange and Nasdaq) owing to its capitalisation and the number of companies listed. Amex is known for its medium-term securities and the option products featured there.

Annual report

A company is required to issue a report each year featuring the balance sheet, the profit and loss accounts and a description of the previous financial year.

Arbitrage

Risk-free operation allowing an investor to take advantage of a temporary market irregularity. Example: buying or selling securities on a given stock exchange, whilst taking the opposite action on another exchange, thereby taking advantage of the price or exchange rate differentials on the two markets.

Asking price

Declared price at which a seller is willing to handover a security.

Assets

Left-hand side of the balance sheet specifying the value of the resources owned by a company on the date when the accounts are approved. The assets are subdivided into two main groups: fixed assets and current assets.