GlossaryGuide

An annual rate of return is the profit or loss on an investment over a one-year period. There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, multiplying it by 12 expresses an annual rate of return. This is often called the annual… Continue reading ANNUAL RETURN

A report filed to the SEC by public companies that includes the company’s history, audited financial statements, a discussion of products and services, a review of the organization and its operations, and a discussion of the company’s major markets.

The annual report to shareholders is a document used by most public companies to disclose corporate information to their shareholders. It is usually a state-of-the-company report, including an opening letter from the Chief Executive Officer, financial data, results of operations, market segment information, new product plans, subsidiary activities, and research and development activities on future… Continue reading ANNUAL REPORT

Once-a-year meetings where the chief executive officer reports on the year’s results to shareholders. At this meeting, shareholders vote to elect the board of directors and on other corporate business.

The stocks of most foreign companies that trade in the U.S. markets are traded as American Depositary Receipts (ADRs). U.S. depositary banks issue these stocks. Each ADR represents one or more shares of foreign stock or a fraction of a share. If you own an ADR, you have the right to obtain the foreign stock… Continue reading AMERICAN DEPOSITARY RECEIPTS (ADRS)

Alternative Trading Systems (ATSs) are SEC-regulated electronic trading systems that match orders for buyers and sellers of securities. An ATS is not a national securities exchange. However, an ATS may apply to the SEC to become a national securities exchange.  All current ATSs are “dark pools.”  Dark pools are trading systems that allow their users to place… Continue reading ALTERNATIVE TRADING SYSTEMS (ATSS)

Alternative mutual funds (sometimes called alt funds or liquid alts) are publicly offered, SEC-registered mutual funds that hold non-traditional investments or use complex investment and trading strategies.  Investors considering alt funds should be aware of their unique characteristics and risks. For more information, please read our Investor Bulletin:  Alternative Mutual Funds. 

An All-Or-None (AON) order is an order to buy or sell a stock that must be executed in its entirety, or not executed at all.  AON orders that cannot be executed immediately remain active until they are executed or cancelled.  Learn More.

After-hours trading, also known as extended-hours trading, refers to trading that occurs outside of regular trading hours. Regular trading hours for stocks traded on exchanges and certain other markets are from 9:30 a.m. to 4:00 p.m. Eastern Time. After-hours trading sessions may occur before or after regular trading hours. The duration of after-hours trading sessions… Continue reading AFTER-HOURS TRADING

Affinity fraud refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups. The fraudsters who promote affinity scams frequently are – or pretend to be – members of the group. They often enlist respected community or religious leaders from within the group to… Continue reading AFFINITY FRAUD