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

Category: Finance Dictionary

ARBITRAGE

An investment strategy involving the simultaneous purchase and sale of two ASSETS in order to capitalize on small price or rate discrepancies. The intent of the strategy is to generate a profit

ARIMA MODEL

Refer to autoregressive integrated moving average model.

ARSENIC

A metal toxic to humans that causes skin cancer, lung cancer, peripheral vascular disease, and liver damages. It is used for gun shot and semiconductors.

ASSET/EQUITY RATIO

The amount of revenue a company has. The total revenue and the amount a shareholder gets is used to reach this ratio.

ATMOSPHERICS

When a retail store has displays, smells, and environmental elements to influence mood.

AUDIT STRATEGY

The plan the audited party has for answering questions that may be asked in the auditing process.

AUTHORITARIANISM

When orders are given with threats. This is done to cement the power status of the parties involved. It must be maintained.

AUTOMATIC BILL PAYMENT

When a bill is paid directly from an account through an electronic transfer. This must be authorized. The vendor must submit a request. It can be stopped at any time.

AUTONOMOUS INVESTMENT

An investment that interest rates and profit in the economic climate. If it succeeds the economy did not necessarily get better. Refer to induced investment.

AVOIRDUPOIS WEIGHT

The unit of goods sold by weight. Precious metals are not considered. A pound is considered 16 ounces. Metals are sold in troy ounces which is different.

ADDRESS OF RECORD

The permanent address of an individual or organization. Refer to registered office.

ADMINISTRATOR’S DEED

When a property is given to the next of kin by way of a deed to the property. The holder of the deed owns the property.

ADVERSE DEVELOPMENT COVER

A FINITE INSURANCE CONTRACT where the INSURED shifts the timing of losses that have already occurred, as well as those that have been INCURRED BUT NOT YET REPORTED, to the INSURER. In

AESTHETIC

A beautiful image or element. It usually has darwinistic symmetry.

AGE SETBACK

Assuming women live longer than men. This means they will pay more premiums and thusly a discount is given for this.

AGENCY RISK

The loss that occurs when an agent abuses power to benefit themselves. AKA agency cost.

AGGREGATOR

A party that organizes things in to similar groups.

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