Dictionary_of_Banking_and_Finance

active partner

6

address

active partner / kt v pɑ tnə/

COMMENT: In the UK, actuaries are quali-

noun a partner who works in a company

fied after passing the examinations of the

that is a partnership

Institute of Actuaries.

activity / k t v ti/ noun the fact of

ACU abbreviation Asian Currency Unit

being active or busy a low level of

adaptable /ə d ptəb(ə)l/ adjective

business activity There was a lot of

able to change or be changed

activity on

the Stock

Exchange.

adaptation

/ d p te ʃ(ə)n/

noun

monthly activity report a report by a

the process of changing something, or of

department on what has been done dur-

being changed, to fit new conditions

ing the past month

adaptation to new surroundings

‘…preliminary indications of the level of

ADB abbreviation 1. African Develop-

business investment and activity during the

March quarter will provide a good picture of

ment Bank 2. Asian Development Bank

economic

activity

in

the

year’

add / d/ verb to put figures together to

[Australian Financial Review]

make a total If you add the interest to

activity chart / k t v ti tʃɑ t/ noun

the capital you will get quite a large

a plan showing work which has been

sum. Interest is added monthly.

done, made so that it can be compared to

added value / d d v lju / noun an

a previous plan showing how much

amount added to the value of a product

work should be done

or service, equal to the difference be-

act of God / kt əv ɒd/ noun

tween its cost and the amount received

something you do not expect to happen,

when it is sold. Wages, taxes, etc. are

and which cannot be avoided, such as a

deducted from the added value to give

storm or a flood (NOTE: Acts of God are

the profit. Value Added Tax

not usually covered by insurance poli-

adding machine / d ŋ mə ʃi n/

cies.)

noun a machine which adds numbers

actual adjective / ktʃuəl/ real or cor-

addition /ə d ʃ(ə)n/ noun an act of

rect What is the actual cost of one

putting numbers together You don’t

unit? The actual figures for directors’

need a calculator to do simple addition.

expenses are not shown to the share-

additional /ə d ʃ(ə)nəl/ adjective ex-

holders. noun a physical commodity

tra which is added additional costs

which is ready for delivery (as opposed

They sent us a list of additional charges.

to futures)

Some additional clauses were added

actual price / ktʃuəl pra s/ noun a

to the contract. Additional duty will

price for a commodity which is for im-

have to be paid.

/ə-

mediate delivery

additional

borrowing

actuals / ktʃuəlz/

plural noun real

d ʃ(ə)n(ə)l bɒrəυ ŋ/

noun extra bor-

rowing

in addition

to

money

already

figures These figures are the actuals

borrowed

for last year.

additional

premium

/ə d ʃ(ə)nəl

actuarial

/ ktʃu eəriəl/ adjective

pri miəm/ noun a

payment

made to

calculated by an actuary The premi-

cover

extra

items

in

an

existing

ums are worked out according to actu-

insurance

arial calculations.

additional

voluntary

contribu-

actuarial

tables

/ ktʃu eəriəl

tions

/ə d ʃ(ə)n(ə)l

vɒlənt(ə)ri

te b(ə)lz/ noun lists showing how long

kɒntr bju ʃ(ə)nz/

plural

noun

extra

people of certain ages are likely to live,

payments made voluntarily by an em-

used to calculate life assurance premi-

ployee to a pension scheme (on top of

ums and annuities

the normal contributions, up to a maxi-

actuary / ktʃuəri/ noun a person

mum of 15% of gross earnings). Abbre-

employed by an insurance company or

viation AVCs

other organisation to calculate the risk

address /ə dres/ noun the details of

involved in an insurance, and therefore

number, street and town where an office

the premiums payable by people taking

is located or a person lives My busi-

out insurance

ness address

and phone

number are

printed on the card. verb 1. to write

addressee

7

adjustment credit

the details of an address on an envelope or package a letter addressed to the managing director an incorrectly addressed package Please address your enquiries to the manager. 2. to say something to someone The chairman addressed the meeting.

addressee / dre si / noun a person to whom a letter or package is addressed

addressing machine /ə dres ŋ mə-

ʃi n/ noun a machine which puts addresses on envelopes automatically

address list /ə dres l st/ noun a list of names and addresses of people and companies

add up / d p/ verb 1. to put several figures together to make a total He made a mistake in adding up the column of figures. the figures do not add up the total given is not correct 2. to make sense The complaints in the letter just do not add up.

add up to / d p tυ/ verb to make a total of The total expenditure adds up to more than £1,000.

adequacy / d kwəsi/ noun the fact of being large enough or good enough for something

adequate / d kwət/ adjective large or good enough to operate without adequate cover to act without being completely protected by insurance

adjudicate /ə d$u d ke t/ verb to give a judgement between two parties in law or to decide a legal problem to adjudicate a claim to adjudicate in a dispute he was adjudicated bankrupt he was declared legally bankrupt

adjudication /ə d$u d ke ʃ(ə)n/ noun the act of giving a judgement or of deciding a legal problem

adjudication of bankruptcy /ə-

d$u d ke ʃ(ə)n əv b ŋkr ptsi/ noun a legal order making someone bankrupt

adjudication tribunal /ə d$u d -

ke ʃ(ə)n tra bju n(ə)l/ noun a group which adjudicates in industrial disputes

adjudicator /ə d$u d ke tə/ noun a person who gives a decision on a problem an adjudicator in an industrial dispute

adjust /ə d$ st/ verb to change something to fit new conditions Prices are adjusted for inflation.

‘…inflation-adjusted GNP moved up at a 1.3% annual rate’ [Fortune]

‘Saudi Arabia will no longer adjust its production to match short-term supply with demand’ [Economist]

‘…on a seasonally-adjusted basis, output of trucks, electric power, steel and paper decreased’ [Business Week]

adjustable /ə d$ stəb(ə)l/ adjective which can be adjusted

adjustable peg /ə d$ stəb(ə)l pe / noun a method of pegging one currency to another, which allows the exchange rate to be adjusted from time to time

adjustable rate mortgage /ə-

d$ stəb(ə)l re t mɔ d$/ noun a mortgage where the interest rate changes according to the current market rates. Abbreviation ARM

adjustable rate preferred stock

/ə d$ stəb(ə)l re t pr f% d stɒk/ noun a preference shares on which dividends are paid in line with the interest rate on Treasury bills. Abbreviation

ARPS

adjusted balance /ə d$ st db ləns/ noun a balance in a bank ac-

count which is adjusted to take account of debits and credits during a period. This balance can then be used as a basis for calculating bank charges.

adjusted gross income /ə d$ st drəυs nk m/ noun US a person’s

total annual income less expenses, pension contributions, capital losses, etc., used as a basis to calculate federal income tax. Abbreviation AGI

adjuster /ə d$ stə/ noun a person who calculates losses for an insurance company

adjustment /ə d$ stmənt/ noun 1. the act of adjusting to make an adjustment to salaries an adjustment of prices to take account of rising costs 2. a slight change Details of tax adjustments are set out in the enclosed document. 3. an entry in accounts which does not represent a receipt or payment, but which is made to make the accounts correct 4. a change in the exchange rates, made to correct a balance of payment deficit

adjustment credit /ə d$ stməntkred t/ noun a short-term loan from the Federal Reserve to a commercial bank

adjustment trigger 8 adverse action

adjustment trigger /ə d$ stmənt

ad valorem / d və lɔ rəm/ adjective

tr ə/ noun a factor such as a certain

from a Latin phrase meaning ‘according

level of inflation which triggers an ad-

to value’, showing that a tax is calcu-

justment in exchange rates

lated according to the value of the goods

adjustor /ə d$ stə/ noun same as

taxed ad valorem duty ad valorem

adjuster

tax

administer /əd m n stə/

verb to

or-

COMMENT: Most taxes are ‘ad valorem’.

For example VAT is calculated as a per-

ganise, manage or direct the whole of an

centage of the charge made, and income

organisation or part of one She admin-

tax is a percentage of income earned.

isters a large pension fund. It will be

ad

valorem

duty

/ d və lɔ rəm

the HR manager’s job to administer the

induction programme.

dju ti/ noun the duty calculated on the

administered price /əd m n stəd

sales value of the goods

ad

valorem

tax

/ d və lɔ rem

pra s/ noun US a price fixed by a man-

ufacturer which cannot be varied by a

t ks/ noun tax calculated according to

retailer (NOTE: The UK term is resale

the value of the goods taxed

price maintenance.)

advance /əd vɑ ns/ noun 1. money

administration /əd m n stre ʃ(ə)n/

paid as a loan or as a part of a payment

noun 1. the action of organising, con-

to be made later She asked if she

trolling or managing a company 2. a

could have a cash advance. We paid

person or group of people who manage

her an advance on account. 2. an

or direct an organisation It is up to the

increase 3. in advance early, before

administration to solve the problem, not

something happens freight payable in

the government. 3. an appointment by a

advance prices fixed in advance ad-

court of a person to manage the affairs

jective early, or taking place before

of a company

something else happens advance

administration

costs

/əd m n -

payment

Advance holiday bookings

are up on last year. You must give

stre ʃ(ə)n

kɒsts/, administration

seven days’ advance

notice of with-

expenses

/əd m n stre ʃ(ə)n

k-

drawals from the account. verb 1. to

spens z/ plural

noun the costs

of

lend

The

bank

advanced

him

management, not including production,

£100,000

against the

security of

his

marketing or distribution costs

house. 2. to increase Prices generally

administration

order

/əd m n -

advanced on the stock market. 3. to

stre ʃ(ə)n ɔ də/ noun 1. an order by a

make something happen earlier The

court, by which a debtor repays his

date of the AGM has been advanced

debts in instalments 2. an order by a

to May 10th. The meeting with the

court to appoint an administrator for a

German distributors has been advanced

company

from 11.00 to 09.30.

administrative

receiver

/əd-

Advance Corporation Tax

/əd-

m n strət v

r si və/ noun a person

vɑ ns kɔ pə re ʃ(ə)n t ks/ noun a

appointed by a court to administer the

tax (abolished in 1999) which was paid

affairs of a company

by a company in advance of its main

administrator

/əd m n stre tə/

corporation tax payments. It was paid

noun 1. a person who directs the work

when dividends were paid to sharehold-

of other employees in a business After

ers and was deducted from the main tax

several years as a college teacher, she

payment when that fell due. It appeared

hopes to become an administrator. 2. a

on the tax voucher attached to a divi-

person appointed by a court to manage

dend warrant. Abbreviation ACT

the affairs of someone who dies without

adverse / dv% s/ adjective unfa-

leaving a will

charge

/əd m ʃ(ə)n

vourable

adverse balance of trade a

admission

situation in which a country imports

tʃɑ d$/ noun the price to be paid before

more than it exports adverse trading

going into an area or building, e.g. to see

conditions bad conditions for trade

an exhibition

adverse action / dv% s kʃən/

ADR abbreviation American Deposi-

noun a decision which has unfavourable

tary Receipt

consequences for employees The new

	advertising agency					9			against
	bonus system was considered adverse						affect /ə fekt/ verb to cause some
	action by underachievers in the						change in something, especially to have
	organisation.						a bad effect on something The new
	advertising agency			/ dvəta z ŋ			government regulations do not affect us.
							affiliate /ə f liət/ noun a company
	e d$ənsi/ noun an office which plans,
	designs and manages advertising for						which partly owns another company, or
	other companies						is partly owned by the same holding
	advertising budget			/ dvəta z ŋ			company as another
							affiliated /ə f lie t d/ adjective con-
	b d$ t/ noun money planned for
	spending on advertising Our advertis-						nected with or owned by another com-
	ing budget has been increased.						pany Smiths Ltd is one of our
	advice /əd va s/ noun an opinion as to						affiliated companies.
							affinity card /ə f n ti kɑ d/ noun a
	what action to take The accountant’s
	advice was to send the documents to the						credit card where a percentage of each
	police.	to take legal advice to ask a					purchase made is given by the credit
	lawyer to say what should be done as						card company to a stated charity
	per advice 1. according to what is writ-						affluent / fluənt/ adjective rich
	ten on the advice note 2. advising that a						Our more affluent clients prefer the lux-
	bill of exchange has been drawn						ury model.	the affluent rich people
	advise /əd va z/ verb 1. to tell some-						the mass	affluent people with		more
							than £50,000 in liquid assets
	one what has happened We have been
	advised that the shipment will arrive						affluent society / fluənt sə sa əti/
	next week. 2. to suggest to someone						noun a type of society where most peo-
	what should be done The lawyer ad-						ple are rich
	vised us to send the documents to the						afford /ə fɔ d/ verb to be able to pay
	police.						for or buy something We could not af-
	advise against /əd va z ə enst/						ford the cost of two telephones. The
	verb to suggest that something should						company cannot afford the time to train
	not be done The HR manager advised						new staff. (NOTE: Only used after can,
	against dismissing the staff without						cannot, could, could not, able to)
	notice.						afghani / f ɑ ni/ a unit of currency
	adviser /əd va zə/, advisor noun a						used in Afghanistan
	person who suggests what should be						African	Development		Bank
	done He is consulting the company’s						/ fr kən d veləpmənt/ noun a bank
	legal adviser.						set up by African countries to provide
	advisory /əd va z(ə)ri/			adjective		as	long-term	loans	to help agricultural
							development and		improvement	of the
	an adviser He is acting in an advisory
							infrastructure.		Abbreviation	ADB
	capacity.
							(NOTE: The bank now has non-African
	advisory board /əd va z(ə)ri bɔ d/
							members.)
	noun a group of advisors						afterdate / ɑ ftəde t/ noun a bill of
	advisory funds /əd va z(ə)ri f ndz/
							exchange payable at a date later than
	plural noun funds placed with a fi-						that on the bill
	nancial institution to invest on behalf of						aftermarket / ɑ ftəmɑ k t/ noun a
	a client, the institution investing them at
							market in new shares, which starts im-
	its own discretion
			Annual Equivalent				mediately after trading in the shares be-
	AER abbreviation						gins (i.e. a secondary market)
	Rate						after tax / ɑ ftər t ks/ adverb after
	AEX abbreviation		Amsterdam		Stock		tax has been paid
	Exchange						after-tax profit / ɑ ftə t ks prɒf t/
	AFBD	abbreviation Association				of	noun profit after tax has been deducted
	Futures Brokers and Dealers						AG abbreviation Aktiengesellschaft
	Affärsvärlden		General		Index		against /ə enst/ preposition 1. in
	noun an index of prices on the Stock-						view of the fact that something else is
	holm Stock Exchange						owed or has been pledged Can I have

aged debtors analysis

an advance against next month’s salary? The bank advanced him £10,000 against the security of his house. 2. compared with

‘…investment can be written off against the marginal rate of tax’ [Investors Chronicle]

aged debtors analysis / e d$ddetəz ə n ləs s/, ageing schedule

/ e d$ ŋ ʃedju l/ noun a list which analyses a company’s debtors, showing the number of days their payments are outstanding

COMMENT: An ageing schedule shows all the debtors of a company and lists (usually in descending order of age) all the debts that are outstanding. The debtors will be shown as: £X at 30 days, £Y at 60 days, £Z at 90 days, etc.

agency / e d$ənsi/ noun 1. an office or job of representing another company in an area They signed an agency agreement or an agency contract. 2. an office or business which arranges things for other companies 3. US a security issued by a government agency, such as a Federal Home Loan Bank

agency bank / e d$ənsi b ŋk/ noun a bank which does not accept deposits, but acts as an agent for another (usually foreign) bank

agency bill / e d$ənsi b l/ noun a bill of exchange drawn on the local branch of a foreign bank

agency broker / e d$ənsi brəυkə/ noun a dealer who acts as the agent for an investor, buying and selling for a commission

agent / e d$ənt/ noun 1. a person who represents a company or another person in an area to be the agent for BMW cars 2. a person in charge of an agency

an advertising agent The estate agent sent me a list of properties for sale. Our trip was organised through our local travel agent. 3. (business) agent US the chief local official of a trade union Management would only discuss the new payment scheme with agents officially representing the workers.

agent bank / e d$ənt b ŋk/ noun a bank which uses the credit card system set up by another bank

agent de change noun the French word for stockbroker

10

agree

agente de cambio y bolsa noun the Spanish word for stockbroker

agente di cambio noun the Italian word for stockbroker

agent’s commission / e d$ənts kə m ʃ(ə)n/ noun money, often a percentage of sales, paid to an agent

aggregate / r ət/ adjective total, with everything added together aggregate output

aggregate demand / r ət d -

mɑ nd/ noun total demand for goods and services from all sectors of the economy, such as individuals, companies and the government Economists are studying the recent fall in aggregate demand. As incomes have risen, so has aggregate demand.

aggregate risk / r ət r sk/ noun the risk which a bank runs in lending to a customer

aggregate supply / r ət sə-

pla / noun all goods and services on the market Is aggregate supply meeting aggregate demand?

AGI abbreviation 1. US adjusted gross income 2. annual gross income

agio / d$ əυ/ noun 1. a charge made for changing money of one currency into another, or for changing banknotes into cash 2. the difference between two values, such as between the interest charged on loans made by a bank and the interest paid by the bank on deposits, or the difference between the values of two currencies, or between a gold coin and paper currency of the same face value

AGM abbreviation Annual General Meeting

agree /ə ri / verb 1. to decide and approve something together with another person or other people The figures were agreed between the two parties. We have agreed the budgets for next year. He has agreed your prices. The terms of the contract are still to be agreed. 2. to agree on something to come to a decision that is acceptable to everyone about something We all agreed on the need for action. 3. to agree to something to say that you accept something that is suggested After some discussion he agreed to our plan.

to agree to do something to say that you will do something She agreed to

agreed

11

allocation

be chairman. Will the finance director agree to resign?

agreed /ə ri d/ adjective which has been accepted by everyone We pay an agreed amount each month. The agreed terms of employment are laid down in the contract.

agreed price /ə ri d pra s/ noun a price which has been accepted by both the buyer and seller

agreed takeover bid /ə ri dte kəυvə b d/ noun a takeover bid

which is accepted by the target company and recommended by its directors to its shareholders

agreement /ə ri mənt/ noun a spoken or written contract between people or groups which explains how they will act a written agreementan unwritten or verbal agreement

to draw up or to draft an agreement to break an agreement to sign an agreement to reach an agreement or to come to an agreement on something

a collective wage agreement

‘…after three days of tough negotiations the company has reached agreement with its 1,200 unionized workers’ [Toronto Star]

agreement among underwriters

/ə ri mənt ə m ŋ ndəra təz/ noun a document which forms a syndicate of underwriters, linking them to the issuer of a new share issue

agree with /ə ri w ð/ verb 1. to say that your opinions are the same as someone else’s I agree with the chairman that the figures are lower than normal. 2. to be the same as The auditors’ figures do not agree with those of the accounts department.

AICPA abbreviation American Institute of Certified Public Accountants

AIM abbreviation alternative investment market

AIMA abbreviation Alternative Investment Management Association

air carrier / eə k riə/ noun a company which sends cargo or passengers by air

air forwarding / eə fɔ wəd ŋ/ noun the process of arranging for goods to be shipped by air

air freight / eə fre t/ noun the transportation of goods in aircraft, or goods

sent by air to send a shipment by air freight Air freight tariffs are rising.

air freight charges / eə fre ttʃɑ d$ z/, air freight rates / eə fre t

re ts/ plural noun money charged for sending goods by air

airmail / eəme l/ noun a postal service which sends letters or parcels by air to send a package by airmail Airmail charges have risen by 15%. verb to send letters or parcels by air We airmailed the document to New York.

airmail envelope / eəme lenvələυp/ noun a very light envelope

for sending airmail letters

airmail sticker / eəme l st kə/ noun a blue sticker with the words ‘air mail’, which can be stuck on an envelope or parcel to show that it is being sent by air

airmail transfer / eəme l tr nsf% / noun an act of sending money from one bank to another by airmail

airport tax / eəpɔ t t ks/ noun a tax added to the price of an air ticket to cover the cost of running an airport

Aktie noun the German word for share

Aktiengesellschaft noun the German word for public limited company. Abbreviation AG

alien corporation / e liən kɔ pə-

re ʃ(ə)n/ noun US a company which is incorporated in a foreign country

all-in policy / ɔ l n pɒl si/ noun an insurance policy which covers all risks

all-in rate / ɔ l n re t/ noun 1. a price which covers all the costs connected with a purchase, such as delivery, tax and insurance, as well as the cost of the goods themselves 2. a wage which includes all extra payments, such as bonuses and merit pay

allocate / ləke t/ verb 1. to provide a particular amount from a total sum of money for a particular purpose We allocate 10% of revenue to publicity. $2,500 was allocated to office furniture.

2. to divide something in various ways and share it out How are we going to allocate the available office space?

allocation / lə ke ʃ(ə)n/ noun the process of providing sums of money for particular purposes, or a sum provided for a purpose the allocation of funds to a project

allocation rate

allocation rate / lə ke ʃ(ə)n re t/ noun the percentage of a payment that is actually invested in a fund after initial charges have been taken into account

allonge / lɒn$/ noun a piece of paper attached to a bill of exchange, so that more endorsements can be written on it

All Ordinaries Index /ɔ lɔ d(ə)n(ə)riz ndeks/ noun the index

of prices on the Australian Stock Exchange. Abbreviation AO Index, AO

all or none / ɔ l ɔ n n/ noun a buying order which stipulates that the whole order has to be bought at a certain price and no parts of the order can be executed separately. Abbreviation AON

allot /ə lɒt/ verb to share out to allot shares to give a certain number of shares to people who have applied for them

allotment /ə lɒtmənt/ noun 1. the process of sharing out something, especially money between various departments, projects or people The allotment of funds to each project is the responsibility of the finance director. 2. the act of giving shares in a new company to people who have applied for them share allotment payment in full on allotment

allow /ə laυ/ verb 1. to say that someone can do something Junior members of staff are not allowed to use the chairman’s lift. The company allows all members of staff to take six days’ holiday at Christmas. 2. to give to allow 5% discount to members of staff

3. to agree to or accept legally to allow a claim or an appeal

allowable /ə laυəb(ə)l/ adjective legally accepted

allowable expenses /ə laυəb(ə)l

k spens z/ plural noun business expenses which can be claimed against tax

allowance /ə laυəns/ noun 1. money which is given for a special reason a travel allowance or a travelling allowance 2. part of an income which is not taxed allowances against tax or tax allowances personal allowances 3. money removed in the form of a discount an allowance for depreciation an allowance for exchange loss

12	alternative

‘…the compensation plan includes base, incentive and car allowance totalling $50,000+’ [Globe and Mail (Toronto)]

allowance for bad debt /ə laυəns fə b d det/ noun provision made in a company’s accounts for debts which may never be paid

allow for /ə laυ fɔ / verb 1. to give a discount for something, or to add an extra sum to cover something to allow for money paid in advance Add on an extra 10% to allow for postage and packing. delivery is not allowed for delivery charges are not included 2. to include something in your calculations

allow 28 days for delivery calculate that delivery will take up to 28 days

all-risks policy / ɔ l r sks pɒl si/ noun an insurance policy which covers risks of any kind, with no exclusions

All-Share Index /ɔ l ʃeə ndeks/ noun an index based on the market price of about 700 companies listed on the London Stock Exchange (NOTE: The full

name is the Financial Times Actuaries All-Share Index.)

alpha / lfə/ noun 1. an anticipated performance of a share, compared to the market in general 2. a rate of return on a unit trust or mutual fund, compared with typical returns for that category of trust.

beta

alphabetical order / lfəbet k(ə)lɔ də/ noun the arrangement of records (such as files and index cards) in the order of the letters of the alphabet (A, B, C, D, etc.)

alpha shares / lfə ʃeəz/, alpha securities / lfə s kjυər tiz/, alpha stocks / lfə stɒks/ plural noun shares

in the main companies listed on the London Stock Exchange (about 130 companies, whose shares are frequently traded, normally in parcels of 1000 shares) (NOTE: Transactions in alpha

stocks are listed on SEAQ.)

alternate account /ɔ l t% nət ə-

kaυnt/ noun a bank account where the several signatories can each sign cheques without asking another to validate their signature

alternative /ɔ l t% nət v/ adjective other, which can take the place of something to find someone alternative employment to find someone another job

Alternative Investment Market

Alternative Investment Market

/ɔ l l% nət v n vestmənt mɑ k t/ noun a London stock market, regulated by the London Stock Exchange, dealing in shares in smaller companies which are not listed on the main London Stock Exchange. Abbreviation AIM (NOTE:

The AIM is a way in which smaller companies can sell shares to the investing public without going to the expense of obtaining a full share listing.)

Alternative Minimum Tax /ɔ l-

l% nət v m n məm t ks/ noun US a federal tax on certain capital gains and other income above normal taxable income. Abbreviation AMT

alternative order /ɔ l t% nət vɔ də/ noun an order to do one of two things (such as buy or sell stock at certain prices)

aluminium / lə m niəm/ noun a metal which is frequently traded on commodity exchanges such as the London Metal Exchange (NOTE: The US

spelling is aluminum.)

a.m. /e em/ adverb in the morning, before 12 midday The flight leaves at 9.20 a.m. Telephone calls before 6 a.m. are charged at the cheap rate.

(NOTE: The US spelling is A.M.)

American Bankers Association

/ə mer kən b ŋkəz ə səυsie ʃ(ə)n/ noun an association which represents US banks and promotes good practice. Abbreviation ABA

American Depositary Receipt /ə-

mer kən d pɒz tri r si t/ noun a document issued by an American bank to US citizens, making them unregistered shareholders of companies in foreign countries. The document allows them to receive dividends from their investments, and ADRs can themselves be bought or sold. Abbreviation

ADR

COMMENT: Buying and selling ADRs is easier for American investors than buying or selling the actual shares themselves, as it avoids stamp duty and can be carried out in dollars without incurring exchange costs.

American Institute of Banking

/ə mer kən nst tju t əv b ŋk ŋ/ noun part of the ABA which organises training for bank staff. Abbreviation

AIB

13 Amsterdam Stock Exchange

American Institute of Certified

Public Accountants /ə mer kənnst tju t əv s% t fa d p bl k ə-

kaυntənts/ noun an official organisation representing CPAs. Abbreviation

AICPA

American Stock Exchange /ə-

mer kən stɒk ks tʃe nd$/ noun the smaller of the two Stock Exchanges based in New York (the other is the New York Stock Exchange or NYSE). Abbreviation Amex (NOTE: Also called

Curb Exchange or Little Board, as opposed to the Big Board, or NYSE.)

Amex / meks/ abbreviation American Stock Exchange (informal)

AmEx / meks/ abbreviation American Express

amortisable / mɔ ta zəb(ə)l/ adjective which can be amortised The capital cost is amortisable over a period of ten years.

amortisation /ə mɔ ta ze ʃ(ə)n/, amortising noun an act of amortising amortisation of a debt

amortise /ə mɔ ta z/, amortize verb

1. to repay a loan by regular payments, most of which pay off the interest on the loan at first, and then reduce the principal as the repayment period progresses

The capital cost is amortised over five years. 2. to depreciate or to write down the capital value of an asset over a period of time in a company’s accounts

amount /ə maυnt/ noun a quantity of money A small amount has been deducted to cover our costs. A large amount is still owing. What is the amount to be written off? She has a small amount invested in gilt-edged stock. verb to amount to to make a total of Their debts amount to over £1m.

amount paid up /ə maυnt pe d p/ noun an amount paid for a new issue of shares, either the total payment or the first instalment, if the shares are offered with instalment payments

amount to /ə maυnt tυ/ verb to make a total of Their debts amount to over £1m.

Amsterdam Stock Exchange

/ mstəd m stɒk ks tʃe nd$/ noun the main stock exchange in the Netherlands. Business is transacted by ‘hoekmen’ (marketmakers) or directly

straight line

analogue computer

between banks on the Amsterdam Interprofessional Market (AIM). Abbreviation AEX

analogue computer / nəlɒ kəm-

pju tə/ noun a computer which works on the basis of electrical impulses representing numbers

analyse / nəla z/, analyze verb to examine someone or something in detail

to analyse a statement of account to analyse the market potential

analysis /ə n ləs s/ noun a detailed examination and report a job analysis

market analysis Her job is to produce a regular sales analysis. (NOTE:

The plural is analyses.)

analyst / nəl st/ noun a person who analyses a market analyst a systems analyst

angel / e nd$əl/ noun a person who provides backing for a stage performance, such as a play or musical, and receives a percentage dividend when the start-up costs have been covered

angel network / e nd$əl netw% k/ noun a network of backers, organised through a central office which keeps a database of suitable investors and puts them in touch with entrepreneurs who need financial backing

announce /ə naυns/ verb to tell something to the public to announce the first year’s trading results The director has announced a programme of investment.

announcement /ə naυnsmənt/ noun an act of telling something in public the announcement of a cutback in expenditure the announcement of the appointment of a new managing director The managing director made an announcement to the staff.

annual / njuəl/ adjective for one year an annual statement of income They have six weeks’ annual leave. The company has an annual growth of 5%. We get an annual bonus. on an annual basis each year The figures are revised on an annual basis.

‘…real wages have risen at an annual rate of only 1% in the last two years’ [Sunday Times]

‘…the remuneration package will include an attractive salary, profit sharing and a company car together with four weeks’ annual holiday’ [Times]

14	annual management fee

annual accounts / njuəl ə-

kaυnts/ plural noun the accounts prepared at the end of a financial year

The annual accounts have been sent to the shareholders.

annual depreciation / njuəld pri ʃi e ʃ(ə)n/ noun a reduction in

the book value of an asset at a particular rate per year.

depreciation

Annual Equivalent Rate / njuəl

kw vələnt re t/ noun a figure which shows what the interest rate on an account would be if interest was paid for a full year and compounded. Abbreviation

AER

Annual General Meeting / njuəld$en(ə)rəl mi t ŋ/ noun an annual

meeting of all shareholders of a company, when the company’s financial situation is presented by and discussed with the directors, when the accounts for the past year are approved and when dividends are declared and audited. Abbreviation AGM (NOTE: The US term is

annual meeting or annual stockholders’ meeting.)

annual gross income / njuəlrəυs nk m/ noun total annual in-

come before any deductions or exclusions. Abbreviation AGI

annual income / njuəl nk m/ noun money received during a calendar year

annualised / njuəla zd/, annualized adjective shown on an annual basis

‘…he believes this may have caused the economy to grow at an annualized rate of almost 5 per cent in the final quarter of last year’ [Investors Chronicle]

annualised percentage rate

/ njuəla zd pə sent d$ re t/ noun a yearly percentage rate, calculated by multiplying the monthly rate by twelve

(NOTE: The annualised percentage rate is not as accurate as the Annual Percentage Rate (APR), which includes fees and other charges.)

annually / njuəli/ adverb each year

The figures are updated annually.

annual management charge

/ njuəl m n d$mənt tʃɑ d$/ noun a charge made by the financial institution which is managing an account

annual management fee / njuəlm n d$mənt fi / noun an annual

Annual Percentage Rate

15

application

charge made for running a fund, usually calculated as a percentage of the amount invested

Annual Percentage Rate / njuəl pə sent d$ re t/ noun a rate of interest

(such as on a hire-purchase agreement) shown on an annual compound basis, and including fees and charges. Abbreviation APR

COMMENT: Because hire purchase agreements quote a flat rate of interest covering the whole amount borrowed or a monthly repayment figure, the Consumer Credit Act, 1974, forces lenders to show the APR on documentation concerning hire purchase agreements, so as to give an accurate figure of the real rate of interest as opposed to the nominal rate. The APR includes various fees charged (such as the valuation of a house for mortgage). It may also vary according to the sum borrowed – a credit card company will quote a lower APR if the borrower’s credit limit is low.

annual percentage yield / njuəl pə sent d$ ji ld/ noun the annual rate

of compound interest earned by an account. Abbreviation APY

annual report / njuəl r pɔ t/ noun a report of a company’s financial situation at the end of a year, sent to all the shareholders

annual rest system / njuəl rests stəm/ noun a system by which extra payments or overpayments made to reduce the amount borrowed on a mortgage are credited to the account only once a year

annual return / njuəl r t% n/ noun an official report which a registered company has to make each year to the Registrar of Companies

annuitant /ə nju tənt/ noun a person who receives an annuity

annuity /ə nju ti/ noun money paid each year to a retired person, usually in return for a lump-sum payment. The value of the annuity depends on how long the person lives, as it usually cannot be passed on to another person. Annuities are fixed payments, and lose their value with inflation, whereas a pension can be index-linked. to buy or to take out an annuity He has a government annuity or an annuity from the government.

COMMENT: When a person retires, he or she is required by law to purchase a ‘compulsory purchase annuity’ with the funds accumulated in his or her pension fund. This provides a taxable income for the rest of his or her life, but usually it is a fixed income which does not change with inflation.

annuity certain /ə nju ti s% tən/ noun an annuity that provides payments for a certain number of years, regardless of life or death of the annuitant

antedate / nt de t/ verb to put an earlier date on a document The invoice was antedated to January 1st.

anti- / nti/ prefix against

anticipate / n t s pe t/ verb to expect something to happen

anticipated balance / n t s pe t db ləns/ noun a balance which is forecast from a deposit when it matures

anti-dumping / nti d mp ŋ/ adjective which protects a country against dumping anti-dumping legislation

anti-inflationary / nti n-

fle ʃ(ə)n(ə)ri/ adjective which tries to restrict inflation anti-inflationary measures

anti-trust / nti tr st/ adjective attacking monopolies and encouraging competition anti-trust measures

anti-trust laws / nti tr st lɔ z/,

anti-trust legislation / nti tr stled$ sle ʃ(ə)n/ plural noun laws in the

US which prevent the formation of monopolies

AO abbreviation All-Ordinaries Index AOB abbreviation any other business

AON abbreviation all or none

APACS abbreviation Association for Payment Clearing Services

appendix /ə pend ks/ noun additional pages at the back of a book

applicant / pl kənt/ noun a person who applies for something an applicant for a job or a job applicant an applicant to an industrial tribunal There were thousands of applicants for shares in the new company.

application / pl ke ʃ(ə)n/ noun 1. the act of asking for something, usually in writing, or a document in which someone asks for something, e.g. a job

shares payable on application She