Glossary

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1. Accumulation

If used in the context of Technical Analysis, it is the base pattern on a chart where strong long terms holders buy-under valued securities for the purposes of holding them until a subsequent mark up phase has occurred. Strong holders are usually professionals while weak holders are the general public.

2. Accumulation Fund

A type of superannuation fund where the end total is equal to the total contributions plus the interest credited from the invested securities less any charges, fees and tax payable.

3. Allocated Pension

Allocated Pensions are a form of income stream which are paid out until the account total has exhausted. These pensions are paid out from a pre-determined period and generally speaking you can withdrawal from the pension as a lump sum or a small proportion at any time.

4. American Option

This type of option allows the holder to exercise their right at any given time till expiry.

5. Analysis

The process of examining the detail and structure of a situation in order to recognize the condition of a market.

6. Arbitrage

A strategy used by investors who identify slight price differences between certain markets and use this miss-alignment to buy low, sell high.

7. Ask Price

The price at which a certain party is willing (or asking) to sell a unit of a particular security at. This is the price that you will buy at if you are buying a stock.

8. Asset

Any property which is owned by a person or a company, which is has certain economic value and contains an element of future benefit.

9. At the Market

A term where an investor buys or sells at the best current price in relation any trade executed.

10. At the Money

A term which refers to the strike or exercise price of an option, where the price of the option is very close to the current market price of the underlying asset.

11. Austraclear

Is the Australian organization which acts as an electronic clearing-house for a range of financial transactions.

12. Australian Prudential Regulation Authority (APRA)

Is the Australian regulator and supervisor of authorize deposit-taking institutions and certain non-bank financial institutions.

13. Australian Securities and Investment Commission (ASIC)

Is the Australian regulator body which is responsible for the supervision and enforcement of the Corporations Act which people and organizations abide by.

14. Australian Stock Exchange (ASX)

Is the primary stock exchange in Australia for all shares.

15. Average

The prices for a group of financial instruments are added together and then divided by the total number of instruments in the group. The Dow Jones Industrial Average is the most commonly known average.

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