Found:  29 Items

A Workflow Engine

The component in a workflow automation program that knows all the procedures, steps and rules. It determines whether the process is ready to move to the next step.

Absolute Return

The actual rate of return achieved on an investment, whether expressed as a CUMULATIVE or ANNUALISED RETURN.


The process of recording, summarizing, and allocating all items of income and expense of the company and analyzing, verifying, and reporting the results.

Accrual Bond

A bond on which interest accrues but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity.

Active Management

A style of investment management which seeks to add value to benchmark returns through actively managing the stock selection of the portfolio. Holdings are therefore likely to be different from the benchmark index both in terms of the securities held and their proportion.

Active Portfolio Strategy

A strategy that uses available information and forecasting techniques to seek better performance than a buy and hold portfolio.

Alternative Investment Market

A market for smaller, younger companies, who are not listed on the London Stock Exchange.


An individual in a brokerage firm, bank trust department, or mutual fund group who researches corporations, industry groups and the market to make buy and sell recommendations on specific securities. A majority of analysts specialize in a particular industry. However, some analyse corporations that interest them, regardless of its industry group. Also called Financial Analyst or securities analyst.


Computer systems that assist the dealer in evaluating risks and prices.

Annual Percentage Rate

The periodic rate times the number of periods in a year. For example, a 5% quarterly return has an A.P.R. of 20%.

Annual percentage yield

The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the effect of compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. For example, a 1% per month rate has an APY of 12.68% (1.01^12 -1). Annual rate of return There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, we sometimes multiply this by 12 to express an annual rate of return. This is often called the annual percentage rate (APR). The annual percentage yield (APY), includes the effect of compounding interest.

Annualised Return

The percentage movement in the value of the shares or units in a fund over a period of time (i.e. the CUMULATIVE RETURN), adjusted to an annualised (or compounded) basis, rather than being a simple percentage change over the total period under review. A simple example would be a fund increasing in value in a two-year period from $1000 per share to $1250 per share. The increase of $250 per share in the two-year period would represent a 25% ($250/$1000) CUMULATIVE RETURN, but would be 11.8% per annum on an ANNUALISED RETURN basis (a two-year compound return of 11.8% equates to an cumulative return of 25% over the same period [$1000*(1.118^2) = $1250]).


A guaranteed income bought by a capital sum.


Taking advantage of small price differences (of securities or goods) in different markets to make a profit. It involves buying something to sell in another market or at another time.


Traditionally someone who indulges in arbitrage of any sort; now a Wall Street term for a professional investor who specialises in issues during takeovers.


Anything of value owned or is owed to it by a business, institution, or individual. Assets may include stocks, cash, investments, accounts receivable, product inventory, real estate and other current assets. Patents and goodwill are called intangible assets.

Asset Allocation

The specific distribution of funds among a number of different asset classes within an investment portfolio, such as cash equivalents, stock, fixed-income investments and such tangible assets as real estate, precious metals and collectibles. Also applies to subcategories such as government, municipal and corporate bonds, and industry groupings of common stocks. Each of asset classes has unique types of expected risk and return. Asset allocation involves determining what percentage of funds will be invested in each asset. Determining how to allocate funds depends on the individual investor. The investor's goals, time frame, and risk tolerance will all affect how an investor wishes to allocate funds based on the investor's desired return and acceptable risk.

Asset Allocation Mutual Fund

A mutual fund that rotates among stocks, bonds, and money market securities to maximize return on investment and minimize risk.

Asset Management

The management of the financial assets of a company in order to maximize return. An account at a financial institution that includes checking services, credit cards, debit cards, margin loans, the automatic sweep of cash balances into a money market fund, as well as brokerage services. Also known as an 'asset management account' or a 'central asset account'.


Fixed assets are land, machines and buildings; current assets consist of cash, money owed, stock, investments and work in progress; intangible assets are goodwill, trade marks, patents, etc; liquid assets are funds kept in cash or in a form that can be quickly and easily turned into cash.

Assets Under Management

Total value of assets that a mutual fund, hedge fund, or other portfolio manager manages and administers for itself and its customers.

Association of Private Client Investment Managers

The Association of Private Client Investment Managers and Stockbrokers, was formed in 1990 to represent the interests of stockbroking firms which specialised in providing services for private clients. In 1994 membership was extended to include investment managers who deal in, advise on, or manage direct investment.

Attribution (also Performance attribution)

The decomposition of a money manager's performance results to explain the reasons why those results were achieved. Indicates the major sources of added value.

Automated Exchange

Exchange where all transactions are entered into and executed by an electronic system.

Automated Order Entry System

Electronic system which facilitates small order execution by routing such orders directly to the appropriate specialist on the exchange floor, rather than going through a floor broker.

Automated Trading System

Screen-based trading system, facilitating a market in which participants buy and sell securities.

Automatic Clearing House

An electronic funds transfer network which enables participating financial institutions to distribute electronic credit and debit entries to bank accounts and to settle such entries.

Automatic Funds Transfer

Transactions which occur through computer networks and which do not require direct management.

Automatic Teller Machine

A cash dispenser