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Advance Directive

Definition for: Advance DirectiveAn "advance directive" is a form of legal document expressing a person's wishes about medical care decisions in the event he or she is unable to make such decisions....

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Adjustable-Rate Preferred Stock

Definition for: Adjustable-Rate Preferred Stock"Adjustable-rate preferred stock" is a preferred stock whose dividend changes according to changes in an established index or other benchmark.

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Adjusted Gross Income

Definition for: Adjusted Gross Income"Adjusted gross income" is a tax term used to determine how much income is taxable. Adjusted gross income is gross income less certain allowable deductions.

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Advance Refunding

Definition for: Advance RefundingAn "advance refunding" is a financing structure under which new municipal or government bonds are issued to repay an outstanding bond issue prior to its first...

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Acquisition

Definition for: AcquisitionAn "acquisition" is when one firm or a company buys another company. This is often referred to as a "Merger" or an "M & A Transaction." An acquisition can be through a...

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Actuarial Risk

Definition for: Actuarial Risk"Actuarial risk" is the risk that the assumptions employed by an actuary to calculate the cost or price of a specific insurance policy or coverage may prove to be...

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Acquisition Agreement

Definition for: Acquisition AgreementAn "Acquisition Agreement" is a contract where one party is buying the assets or stock of another business. These are sometimes referred to as "Business Purchase...

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Ad Valorem Tax

Definition for: Ad Valorem TaxAn "ad valorem tax" is a tax based on the value (or assessed value) of property.

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Acquisition Cost

Definition for: Acquisition Cost"Acquisition cost" is the expense undertaken to acquire equipment, real property or other assets.

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Actuary

Definition for: ActuaryAn "actuary" is a professional in pension and life insurance matters, experienced in math, statistical and accounting methods . An actuary is typically employed by an insurance...

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ACH

Definition for: ACH"ACH" stands for Automated Clearing House and is the national network that allows for transferring funds electronically between financial institutions, companies and individuals....

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Acquirer

Definition for: AcquirerA firm or company that is acquiring a company. . Also see "Merger", "M&A Transaction" and "Acquisition".

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Acquiree

Definition for: Acquiree"Acquiree" refers to a target company being acquired. Also see "Merger" , "M&A Transaction" and "Acquisition".

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Accrual Basis

Definition for: Accrual Basis"Accrual basis" refers to an accounting method in which expenses and income are accounted for as they are earned or incurred, whether or not they have been received or...

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Accretion

Definition for: AccretionIn reference to discount bonds, "accretion" is a straight-line accumulation of capital gains on a discount bond in anticipation of receipt of par (or face value of the bonds)...

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Accrued Interest

Definition for: Accrued Interest"Accrued interest" is interest on a loan obligation that has been earned but not yet paid.

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Accountant

Definition for: AccountantAn "accountant" is an individual or firm that generally prepares, audits, and/or inspects the financial records of individuals and businesses and prepares financial reports...

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Accrued Market Discount

Definition for: Accrued Market Discount"Accrued market discount" is the gain in the value of a discount bond expected from holding it as it reaches maturity.

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Accrual Accounting Method

Definition for: Accrual Accounting Method"Accrual accounting" is an accounting method that tries to match the recognition of revenues earned with the expenses incurred in generating those revenues. It...

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Acceleration Clause

Definition for: Acceleration ClauseAn "acceleration clause" is a contractual provision stating that the unpaid balance becomes due and payable under certain conditions, such as failure to make...

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