When two investors take similar actions (act together), to achieve a single common goal, they are said to be acting in concert. The federal tax that is levied on any retained earning that are in excess of the amount considered reasonable, is termed as accumulated earnings tax. This agreement is illegal in most countries.Ī normal dividend that is considered to be earned but is not really declared or immediately payable by the company.

When a trader enters into non-competitive trades in order to avoid certain liabilities, the action is termed as an accommodation trade. In a case of default or breach of contract, this covenant or clause matures the contract performance immediately, so that all dues are settled immediately. The distribution of a company’s net income is undertaken in accordance with the absolute priority rule, that specifies the order of disbursement as: (a)Interest to Creditors (b)Dividends to Preferred Stockholders and (c)Dividends to the Common Stockholders, in case of liquidation. Any returns above the market returns or any returns below the market returns are also abnormal returns. (b)In USA, mutual funds terminology states ‘a shares’ to have an upfront sales load of 5.75% of the amount invested.Īny return above (abnormal profit) or below (abnormal loss) the expected return on a stock or a portfolio is termed as abnormal returns. The words ‘a share’ has two meanings: (a) They are the calls of common or preferential shares that have increased voting rights on company issues. Stock Terminology – Glossary of Stock Market Terms and Definitions I hope that finding the stock term you are looking for, will be easy to locate in this really long list of stock terms and stock market definitions. The list also defines some alphanumeric words. It follows an alphabetical series, starting from the letter ‘A’, going all the way down to the letter ‘Z’. It includes all possible terms belonging to the categories of ‘investment finance’, ‘mutual funds’, ‘stock market regulatory policies’, ‘trading basics’, stock market basics and ‘stock market instruments’.īefore I start my stock terms glossary, let me tell you about the schematic progression of this article.

My article mainly contains all the stock terms, from all the general categories of stock market finance, and also includes the phrases and jargon that you should most specifically know, if you’re entering the stock markets. So, if you’re wondering what exactly this article contains, let me give you an insight. Stock market terminology is a very vast subject that covers the bond market, stock market, trading, portfolios and even stock term slang or jargon. Before beginning my glossary, let me first define the scope of this glossary.

Pt stock lingo