Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance Dictionary

ASYMMETRIC RISK EXPOSURE

A mismatch of gain and loss due to value changes of an asset. A wide gap is between loss and gain with a call option.

ATTRIBUTION

Labeling something as either the cause or effect of another item.

AUSTERITY BUDGET

When a budget is decided by the government to reduce deficit. The goal is to cut comsumer spending.

AUTOMATICALLY

1. to use an automated system to perform a function. 2. to act without thinking. Like a reflex.

AVAILABILITY BIAS

When decision makers choose based on a personal experience rather than facts. The reaction is emotional.

ADJUSTMENTS ESTIMATE

A request to parliament for a rider attached to a bill changing the amount of money set aside for a yearly budget.

ADVANTAGE

A trait that is favorable for a company. It leads to success in the future. It is the exact opposite of a disadvantage.

ADVERTISING COPY

The letters on any ad that are designed to get a buyers attention.The headline is most important here. Shorter is better but if well written a long ad will also be effective.

AGATE

The size of advertising space. For print its 5.14 points equalling 1.81 mm. Refer to milline rate.

AIDED RECALL

Testing ads for their memorability. A subject is shown an ad and asked what they remembe about it. They are also asked if they saw it before.

ALKALI

A water soluable base that feels soapy. It has a ph level of above 7 and makes the litmust papers turn blue on contact. Burns result from exposure to strong alkalis.

ALLERGEN

Anything that causes an allergic reaction. A person must be allergic to the substance to hav a reaction. The body fights this foreign substance. AKA antigen.

ALTA

Mortgage risk category that isnt prime or sub prime but is closer to prime. AKA A minus.

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