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Glossary of
Stock Market Terminology
A
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Allotment
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The allocation of new securities to an applicant for a new issue. |
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Annual General Meeting
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Mandatory yearly meeting of a company for the purposes of receiving the directors' report and
statement of accounts for the year, declaring a dividend, electing directors and auditors and
determining the auditors' remuneration. |
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Annual Report & Accounts
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A document to be forwarded to shareholders by the directors of a company on an annual basis
which contains, amongst others, the annual audited accounts of the company. |
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Arbitrage
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Buying on one exchange and selling on another at virtually the same moment to take advantage of
a price variation in a company's shares listed on the two exchanges. |
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Articles of Association
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The documents of a company that govern the management and administration of that company. |
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Asset Backing
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A handy yardstick for shareholders. It is the net assets of a company (assets less liabilities)
divided by the number of shares. |
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At Discretion
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An instruction given by a client to his broker, for the broker to buy or sell a stock at his
(the broker's) discretion. |
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At Limit
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An order placed which sets a limit on either the lowest or highest price, for which a share is
bought or sold. |
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At Market (also At Best)
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An instruction to buy or sell at market price. Allows the broker/dealer complete freedom of
action. Should be treated with caution and used only when a share must be sold. |
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Authorised
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Order entry, modification, and cancellation are generally
authorised for the instrument. |
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Authorised Capital
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The nominal amount of capital that a limited company is permitted to raise under the capital
clause in its Memorandum of Association. |
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Averaging
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Buying more of the same shares, generally on a falling market, to lower the average cost per
share. (Can also average up, thereby raising the average cost per share). |
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