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12 Cards in this Set
- Front
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accredited investor |
As defined in Rule 501 ofRegulation D, any institution or individual meetingminimum net worth requirements for the purchase ofsecurities qualifying under the Regulation D registrationexemption. An individual accredited investor isgenerally accepted to be one who, individually or withspouse, has a net worth, excluding the net equity in theprimary residence, of $1 million or more, or has had anannual income of $200,000 or more in each of the twomost recent years (or $300,000 jointly with a spouse),and who has a reasonable expectation of reaching thesame income level in the current yea |
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accumulation stage |
The period during which contributionsare made to an annuity account. See accumulationunit; distribution stage. |
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acid test |
Syn. acid test ratio. See quick asset ratio. |
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active management style |
Unlike the passive style,analysts believe they can identify industries that areundervalued or overvalued in order to weight themappropriately and achieve returns in excess of the market.Some managers engage in sector rotation, whichis overweighting or underweighting industries basedon the current phase of the business cycle. See passivemanagement style; sector rotation. |
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adjusted basis |
The value attributed to an asset or securitythat reflects any deductions taken on, or capitalimprovements to, the asset or security. Adjusted basisis used to compute the gain or loss on the sale or otherdisposition of the asset or security |
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adjusted gross income (AGI |
Gross income from allsources minus certain adjustments to income, such asdeductible contributions to an IRA and net capitallosses. It is basically the amount of income that will besubject to tax. See tax liability. |
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Administrator |
An official or agency that administers astate’s securities laws. |
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advertisement |
Any notice, circular, letter, or other writtencommunication addressed to more than one person,or any notice or other announcement in any publicationor by radio or television, that offers (1) any analysis,report, or publication concerning securities, or thatis to be used in making any determination as to whento buy or sell any security, or which security to buy orsell; or (2) any graph, chart, formula, or other device tobe used in making any determination as to when to buyor sell any security, or which security to buy or sell; or(3) any other investment advisory service with regardto securities |
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agency cross transaction |
For an advisory client,a transaction in which a person acts as an investmentadviser in relation to a transaction in whichthat investment adviser, or any person controlling,controlled by, or under common control with thatinvestment adviser, acts as broker for both an advisoryclient and for another person on the other side of thetransaction. |
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agency issue |
A debt security issued by an authorizedagency of the federal government. Such an issue isbacked by the issuing agency itself, not by the full faithand credit of the US government (except GNMAissues). See government security. |
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agency transaction |
A transaction in which a broker/dealer acts for the accounts of others by buying or sellingsecurities on behalf of customers. Syn. agency basis.See agent; broker; principal transaction |
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agent |
(1) An individual who effects securities transactionsfor the accounts of others. (2) Under state law, asecurities salesperson who represents a broker/dealer oran issuer when selling or trying to sell securities to theinvesting public; this individual is considered an agentwhether he actually receives or simply solicits orders.See broker; broker/dealer; dealer; principal. |
