## Assumable Mortgage Definition

Definition: It refers to buying a house and taking on the previous owner’s mortgage as it stood before the sale. So instead of taking out …

## Asset Allocation Definition

Definition: It refers to the overall term that describes how an investor spreads his cash for investing throughout different types of investment, such as savings …

## Appraisal Definition

Definition: It refers to a process of determining the fair value of an asset. For example a mortgage appraisal will estimate the value of a …

## Acquisition Definition

Definition: It refers to a process whereby one company or the target is bought out by another company. Further, an acquisition may be full, when …

## Austerity Definition

Definition: It refers to an economic policy which aims to reduce a government’s deficit. It can be achieved by decreasing government spending or increasing taxes.…

## AAA-rating Definition

Definition: It refers to the best credit rating that can be given to a borrower’s debts, indicating that the risk of a borrower defaulting is …

## American Option Definition

Definition: It refers to an option that can be exercised anytime during its life. Due to this particular feature, it is the most widely traded …

## Alpha Definition

Definition: It refers to an estimated numeric value of a stock’s expected excess return that cannot be attributed to the market’s volatility, but may be …

Definition: It refers to a trading system that uses developed mathematical models with electronics platforms to make transaction decisions automatically in financial markets. Trading orders …

## Average Variable Cost (AVC) Definition

Definition: It refers to total variable costs divided by the number of units of output, that is, variable cost per unit of output.…

## Average Revenue (AR) Definition

Definition: It refers to total revenue divided by the number of units of output, that is, revenue per unit of output or price of per …

## Average Fixed Cost (AFC) Definition

Definition: It refers to total fixed costs divided by the number of units of output, that is, fixed cost per unit of output.…

## Average Daily Balance Method Definition

Definition: It refers to a calculating method which is used finance charges charges based on the average amount owed for each day of the billing …

## Automatic Stabilizers Definition

Definition: It refers to policies and programs that works automatically without any governmental and policymakers’ intervention during the fluctuations in the economy. For example, tax …

## Auction Definition

Definition: It refers to the efficient way for a seller to set price of its goods and services by observing how much people are willing …

## Asymmetric Information Definition

Definition: It refers to a situation in which a person has more information than another person. In this situation, one side can take advantage of …

## Asset Definition

Definition: It refers to anything with an economic value that an individual, business or country owns with the expectation that it will provide future benefits, …

## Asian Financial Crisis (1997 -98) Definition

Definition: Asian financal crisis or Asian Contagion occurred between June 1997 and January 1998 in Eastern Asian countries as Indonesia, South Korea and Thailand. Then …