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Adhoc Margin
Margin collected by the Stock Exchange from the members having unduly large outstanding position

Advance-decline (A-D) line
The advance-decline line graphs the ratio of shares that have risen in value — the advancers — to Shares that have fallen in value — the decliners — over a particular trading period. The direction and steepness of the A-D line gives you a general idea of the direction of the market. For example, a noticeable upward trend, which is created when there are more advancers than decliners, indicates a growing market. A downward slope indicates a market in retreat. At times, however, there may be no clear trend in either direction.

Alpha
A Share's alpha is an analyst's estimate of its potential price increase based on the rate at which the company's earnings are growing and other aspects of the company's current performance. For example, if a Share has an alpha of 1.15, that means the analyst expects a 15% price increase in a year when Share prices in general are flat. One investment strategy is to look for shares whose alphas are high, which means the shares are undervalued and have the potential to provide a strong return. A share's alpha is different from its beta, which estimates its price volatility in relation to the market as a whole.

American Depository Receipts (ADR) (U.S.)
A certificate issued in the United States in lieu of a foreign security. The original securities are lodged in Bank/Custodian abroad, and the American depository receipts (ADRs) are traded in the US for all intents and purposes as if they were a domestic stock. An ADR dividend is paid in US dollars, so it provides a way for American investors to buy foreign securities without having to go abroad, and without having to switch in and out of foreign currencies.

American Option
An option that can be exercised at any time prior to expiry date.

Amortization
Amortization is the gradual repayment of a debt over a period of time, such as monthly payments on a mortgage or credit card balance. To amortize a loan, your payments must be large enough not only to pay interest that has accrued but also to reduce the principal amount you owe. The word amortize itself tells the story, since it means "to bring to death."

Analyst
A financial analyst tracks the performance of a number of companies or industries, evaluates their potential value as investments, and makes recommendations to buy, sell, or hold specific securities. When the most highly respected analysts express a strong opinion about a share, there is often an immediate impact on that share's price as investors rush to follow the advice. Some analysts work for financial institutions, such as mutual fund companies, brokerage firms, and banks. Others work for analytical services, such as Crisil , Standard & Poor's, or Moody's Investors Service, or as independent evaluators. Analysts' commentaries appear regularly in the financial press, and on radio, television, and the Internet.

Annual report
By law, each publicly held corporation must provide its shareholders with an annual report showing its income and balance sheet. In most cases, it contains not only financial details but also a message from the chairman, a description of the company's operations, and an overview of its achievements. Most annual reports are glossy affairs that also serve as marketing pieces. Copies are generally available from the company's investor relations office, and annual reports may even appear on the company's website.

Annuity
Originally, an annuity was simply an annual payment — hence the name. Over time, annuity has come to refer to different kinds of payments, investments, and financial products. Most commonly, an annuity describes the amount you receive from your pension each year, usually in monthly installments. But, in fact, annuity also refers to the annual income you receive from any source, as well as the source itself. For example, in USA, some tax-deferred retirement savings plans are called annuities.

Asset Management Company
Company which handles the day to day operations and investment decisions of a mutual fund.

At Best
An instruction from the client to the broker authorising him to use his discretion and try to execute an order at the best possible market price.

At-the-Money Option
When the price of the underlying security equals the strike price of the option.

Auction
When a seller is not in a position to deliver the securities he has sold, the buyer sends in his applications for buying-in, so that the securities can be bought from the market and delivered to him. This process by which the securities are procured in the Stock Exchange, on behalf of the defaulter is known as Auction.

Average annual yield
This figure, expressed as a percentage, is your average yearly income on an investment. You can calculate the average annual yield by adding all the income you received on an investment and dividing that amount by the number of years the money was invested. So if you receive Rs.60 interest on a Rs.1,000 bond each year, the average annual yield is 6% (Rs.600 ÷ Rs.1,000 = 0.06, or 6%).