AAAC
Academic and Accreditation Advisory Committee 【SFC】
ABS
See asset-backed securities.
ACCA
Association of Chartered Certified Accountants, The
ACG
Asia-Pacific Central Securities Depository Group
ACIHK
ACI-The Financial Markets of Hong Kong
Acquisition
One company taking control of another by purchasing a majority or all of the target company’s outstanding shares. An “unfriendly” or “hostile” acquisition attempt is usually characterized by an offer far in excess of the market value of the shares, which is meant to induce current stockholders into selling. The target company’s management may retaliate by soliciting competing offers from other companies in hopes that a bidding war will frighten off the attacker.
ADB
Asian Development Bank
ADR
See American depository receipt
AFTA
ASEAN Free Trade Area
AGM
See annual general meeting.
AIB
Audit Investigation Board
AIM
Alternative Investment Market【UK】
AIMR
Association for Investment Management and Research
AMCHAM
American Chamber of Commerce
American Depositary Receipt
A receipt that is issued by a U.S. Depository Bank which represents shares of a foreign corporation held by the bank. Because ADRs are quoted in U.S. dollars and trade just like any other stock, they make it simple for investors to diversify their holdings internationally.
AMEX
American Stock Exchange
AMS
Automatic Order Matching and Execution System
AMS/2
Automatic Order Matching and Execution System / Second Generation
AMS/3
Automatic Order Matching and Execution System / Third Generation
ANNA
Association of National Numbering Agencies
Annual General Meeting
An annual meeting of shareholders required by law where directors inform shareholders of company performance and future prospects. Shareholders vote on board elections and significant company issues.
AOI
All Ordinaries Index
AOSEF
Asian and Oceanian Stock Exchanges Federation
APEC
Asia Pacific Economic Cooperation
APRC
Asia Pacific Regional Committee of IOSCO
Arbitrage
Attempting to profit by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. The ideal version is riskless arbitrage. A technique used by alert traders, now aided by sophisticated computer programs, to profit from minute price differences for the same security on different markets. For example, if a computer monitoring markets notices that ABC stock can be bought on a New York exchange for $10 a share and sold on London exchange at $10.12, the Attempting to profit by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. The ideal version is riskless arbitrage. A technique used by alert traders, now aided by sophisticated computer programs, to profit from minute price differences for the same security on different markets. For example, if a computer monitoring markets notices that ABC stock can be bought on a New York exchange for $10 a share and sold on London exchange at $10.12, the arbitrageur or a special program can simultaneously purchase ABC stock in New York while selling the same amount it in London, thus pocketing the difference.
ARM
Adjustable Rate Mortgage
ASAC
Asian Securities’ Analysts Council
ASC
Accounting Society of China
ASEAN
Association of South-East Asian Nations
A-Share
A-shares are common stocks issued by mainland Chinese companies, subscribed and traded in Chinese RMB, listed in mainland Chinese stock exchanges, bought and sold by Chinese nationals. A share market was launched in 1990.
Asset-backed security
Bonds or notes backed by loan paper or accounts receivable originated by banks, credit card companies, or other providers of credit; not mortgages.
Associated company
One company may be associated with another company if certain types of arrangements exist between the two bodies. Companies may also be considered to be associated when one company has an equity interest in the other.
AST system
Automated screen trading system.
ATI
Account Transfer Instruction.
Audit
A systematic examination of financial statements usually by an independent chartered accountant, with the objective of expressing an opinion on the truth and fairness with which the statements present the financial position, the results of operations and on whether the statements are drawn up in accordance with the relevant law and accounting standards. The auditor’s opinion is customarily conveyed in the form of an audit report to those recipients of the financial statements for whose benefit he is appointed,
usually the shareholders of a company.