Growth Investing Stock Market Glossary
From A for ‘Asset’ to Z for the ‘Zero-Coupon Yield Curve’ — your comprehensive guide to everything that matters in the markets.
ABS (Asset-Backed Securities)
Securities secured by assets such as receivables or lease payments.
Acceptance Rate
Share of platform fees as a percentage of the transaction volume in marketplace models.
Accrued Interest
Accrued but not yet paid interest, which is settled in addition to the price in bond trading (Dirty Price).
Accrued Interest
Period-appropriate allocation of accrued interest.
Acid-test ratio
Liquidity ratio of short-term, quickly marketable assets to short-term liabilities.
Acquisition costs
Transactional costs such as fees, taxes, and spreads when purchasing securities.
Acquisition costs
Sum of purchase price and directly attributable ancillary costs, which serves as the basis for valuation and profit determination.
Active traders
Indicator in the e-commerce/fintech context for the number of users actually trading or selling during the period.
Ad-hoc obligation
Legal obligation of an issuer to immediately publish price-sensitive insider information (MAR).
Adjustable interest rate clause
Contract rule that links interest rates to reference rates.
Admission to trade
Formal admission of a security to a regulated market.
ADR (American Depositary Receipt)
A tradable certificate in the USA representing a specific number of foreign stocks.
Advance financing
Interim financing until the inflow of planned revenues or grants.
Advance-Decline ratio
Market breadth indicator that compares rising and falling stocks in a market.
AFFO (Adjusted Funds From Operations)
Adjusted real estate cash flow metric of REITs that reflects sustainable distribution capacity.
After Hours Trading
Trading outside regular trading hours in after-hours trading.
After-Hours Trading
Trading phase after the official market close with lower liquidity.
Aftermarket (post-trading)
After the official market close, there is a trading phase with lower liquidity and wider spreads.
Agricultural commodities
Raw material group of agricultural products such as grain, coffee, or soybeans that are traded on futures exchanges.
AIF (Alternative Investment Fund)
Non-UCITS funds such as hedge funds, private equity, or real estate funds.
Airdrop
Free token allocation in the crypto space, often used as a marketing or user retention measure.
Allocation
Allocation of emission or exchange parts to investors according to allocation key.
Allocation of securities
Allocation of a security to a specialist.
Allocation ratio
Ratio of allocated shares to the requested volume in an issuance.
Allowance for doubtful accounts
Individual and collective value adjustments for risk provisioning in lending business.
Alpha
Excess return of an investment compared to its risk-appropriate benchmark.
Alternative Investment Fund Managers Directive
EU directive on the regulation of managers of alternative investment funds (AIFM) including authorization and supervision.
Alternative Investments
Non-traditional asset classes such as Private Equity, Hedge Funds, Commodities, or Infrastructure.
American option
Option that can be exercised throughout the entire term until the expiration date.
Amortization schedule
Distribution of repayment amounts over the term of a debt security.
Amortization schedule
Temporal structure of repayments of a loan or a bond.
Analyst presentation
Company presentation for analysts/investors, often as part of roadshows or after quarterly figures.
Anchor heuristic
Cognitive bias where early information (anchor) disproportionately influences later assessments.
Anchored VWAP
Volume-weighted average price from a fixed chosen starting point (anchor) for trend and zone analysis.
Annual audit
Legal examination of the financial statements by independent auditors with a certificate.
Annual dividend
Sum of dividends distributed per share in the calendar year.
Annual financial statements
Formal conclusion with balance sheet, income statement, notes, and, if applicable, management report.
Annual forecast
Expected key figures of a company for the current fiscal year.
Annual General Meeting (AGM)
Shareholders' meeting with decisions on dividends, elections, and discharge.
Annual high
Highest traded price of a security within a calendar year.
Annual loss
Negatives Periodenergebnis nach Steuern in der Gewinn- und Verlustrechnung.
Annual low
Lowest traded price of a security within a calendar year.
Annual Percentage Rate (APR)
Total return on a loan or bond including ancillary costs and compound interest effects.
Annual report
Periodic publication of an issuer with reports, key figures, and outlook.
Annual Report
Annual publication with management report, financial statements, segments, and outlook for investors.
Annual return
Return on an investment over one year, stated either nominally or annualized.
Annual standard deviation
On a year annualized dispersion of returns as a measure of risk.
Annual tax certificate
Bank document about capital gains and withheld taxes for a calendar year.
Annual volatility
The range of fluctuations of a security or portfolio extrapolated to one year.
Anorganic growth
Increase in revenue/profit through acquisitions, mergers, or investments instead of through the core business.
AOV (Average Order Value)
Average order value in e-commerce, important for unit economics and marketing efficiency.
API Access
Technical connection to a programming interface to automatically use data or functions of a platform.
API export
Data or report output from a software via an API for further processing.
Appreciation
Increase in company or asset value through growth or efficiency.
ARPU (Average Revenue per User)
Average revenue per user/customer, key metric in telecom, SaaS, and platform models.
ARR (Annual Recurring Revenue)
Projected annual recurring revenue in SaaS/subscription business models.
Asian option
Option whose payout profile depends on the average value of the underlying asset over a period of time.
Asset Allocation (Asset Allocation)
Strategic distribution of assets across asset classes to manage risk and return.
Asset class
Top category of assets such as stocks, bonds, real estate, or commodities with similar risk/return profiles.
Asset management
Professional management of client assets according to mandate and risk/reward goals.
Asset Management Company
Company for the issuance and management of investment assets.
Assignment
Allocation of the obligation from a short option when the buyer exercises their right to do so.
Assignment (transfer of claim)
Transfer of receivables rights to a new creditor.
Auction Imbalance
Imbalance between buy and sell orders in auction phases, which can indicate a significant opening/closing price.
Auction Market
Stock exchange model with price determination through auctions (e.g. opening/closing auction) instead of continuous trading.
Audit
Independent examination of a company's financial statements, processes, and reports.
Audit opinion
Audit opinion on the financial statements such as unqualified, qualified, or disclaimer.
Auditor (WP)
Independent auditor of annual and consolidated financial statements with certification.
Auditor Opinion
Audit note from the auditor on the financial statements (e.g. with/without limitation).
Authorized Participant (AP)
Institution that creates or redeems large shares in ETFs to ensure liquidity.
Average Directional Index
Trend strength indicator that measures how pronounced a trend is - regardless of the direction.
Average True Range
Indicator for measuring the average trading range as a measure of volatility.
