At
Par
The price of a security that is equal to the face or nominal value.
See: Par
At The Money
An option in which the underlying security is trading exactly at the strike
(exercise price) of the option.
Premiums
paid or received and commissions are not considered. Thus, "at the money"
should not be confused with an investor's break-even point on the option.
See: Deep
In The Money; Deep
Out Of The Money; In
The Money; Out
Of The Money
At The Close Order
An order to execute a buy or sell within the last 30 seconds of the trading
day. There is no guarantee that the execution price will be the closing
price or that the order will be executed at all.
See: Close,
The; Execution;
Orders
At The Opening Order
An order to execute a buy or sell at the opening price. If the order can
not be executed at the opening, it will be automatically canceled.
See: Execution;
Opening, The;
Orders
Auction Market
System by which securities are traded through brokers or agents on an
exchange such as the New York Stock Exchange. Unlike conventional auctions
with one auctioneer and many buyers, here there are many buyers and sellers.
Brokers competitively bid for the most advantageous price. It is distinguished
from the over-the-counter market, where trades are bought by dealers.
See: Over
The Counter
Auditor's Report
Often called the accountant's opinion, it is an accounting firm's statement
of a corporation's financial documents. The examination assures that the
corporation is conforming to the normal and generally accepted practices
of accountancy.
See: Generally
Accepted Accounting Principles
Autex System
When brokers want to trade large blocks of securities, they will utilize
this electronic system to alert other brokers. The actual transaction
takes place over-the-counter or on an exchange floor and not on the system.
Authorized Shares
Also called "authorized stock", it is the maximum number of shares of
any class that a corporation may issue. This amount is set at the time
of incorporation and is part of the Articles of Incorporation. A corporation
provides for future increases in authorized stock by the votes of stockholders.
The corporation does not have to issue all the authorized shares.
See: Articles
Of Incorporation
Automatic Withdrawal
A program offered by a mutual fund to its shareholders. It enables shareholders
to withdraw a fixed amount of money on a monthly or quarterly basis. The
payment consists of dividends, realized capital gains and income generated
from securities held by the fund.
Average Down
A strategy used to reduce the average price paid for a security by buying
additional shares of the security at lower prices.
See: Average
Up; Dollar
Cost Averaging
Average Equity
In a trading account, it is the average daily balance. Although daily
fluctuations in equity are normal, average equity is an effective guide
in ensuring sufficient equity to meet margin requirements.
See: Margin
Requirement
Average Life
The average length of time anticipated that a bond, with a mandatory sinking
fund, will be outstanding.
See: Yield
To Average Life
Average Up
On a rising market, averaging up is the act of buying an equal number
of shares of a security to lower its overall cost basis. For example,
if an investor buys an equal number of shares at $20, $23, $25, and $28,
the average cost basis will be $24.
See: Average
Down; Dollar
Cost Averaging
Away From The Market
A phrase used when a "limit order's" asking price is higher or the bid
is lower than the current market price for the security.
See: Limit
Order
