Accretion of bonds means that over time, the value of a bond goes up gradually. This happens because the bond was bought at a lower price than its face value (e.g. zero coupon bonds) and as time passes, its value moves closer to the face value.
Accrued Interest
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Accrued interest is the interest that accumulates on a bond between coupon payments. For example, if you buy a bond between its payment dates, you may owe the seller accrued interest for the time they held the bond.
Allotment
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Allotment denotes the allocation of bonds available for purchase to the public during a public offering. This process entails deciding the specific number of bonds assigned to each individual investor.
American Option
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An American option is a form of option contract that permits the holder to activate their right to exercise the option at any point up until its expiry date.
Amortization
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Amortization is the gradual reduction of the principal amount throughout the loan term, achieved through regular installments or partial repayments.
Annuity
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An annuity is a financial instrument that delivers a stream of payments at consistent intervals.
Appreciation
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Appreciation is increase in the value of an asset over time.
Arbitrage
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Arbitrage is the practice of capitalizing price differences of the same asset in different markets to make a profit with no risk.
Arbitrageur
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An arbitrageur is an individual who capitalizes on price inconsistencies in financial markets to generate profits through arbitrage.
ASBA
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ASBA, which stands for "Applications Supported by Blocked Amount," serves as a vital mechanism for individuals looking to subscribe to bonds or stocks in a public issue. Within the ASBA framework, an applicant's bank account is earmarked for the desired subscription amount. However, this amount is only deducted from the account post the completion of stock or bond allocation.
Ask Price
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Ask price is the price at which a seller is willing to sell a security.
Asset
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An asset refers to any resource with economic value that an individual, corporation, or entity owns or controls, which is expected to provide future probable benefits.