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Glossary

AAA American Arbitration Association
ACES See Advanced Computerized Execution System
ACTSM See Automated Confirmation Transaction ServiceSM
ADR See American Depositary Receipt
Advanced Computerized Execution System (ACES) Customized facility offered by NASDAQ that permits broker-dealers to automate their internal execution and record-keeping functions.
advertising review A regulatory service provided by FINRA to ensure that advertising and sales literature used by members conforms to FINRA and Securities and Exchange Commission standards of fairness and accuracy.
affirmative obligations Requirements imposed on Nasdaq Market Makers by FINRA. These include quoting firm prices, making two-sided markets on a continuous basis, participating in the Small Order Execution System, and reporting price and volume data for each transaction in a Nasdaq security within 90 seconds of execution. (See Market Maker, Small Order Execution System, two-sided market)
aftermarket Trading activity in a security immediately following its initial offering to the public.
agency order An order that a broker-dealer executes for the account of a customer with another professional or retail investor and for which a commission is typically charged. (See principal orders)
American Depositary Receipt (ADR) A U.S. security that is a repackaged foreign security. A U.S. bank creates an ADR based on evidence of ownership of a specified number of shares in the foreign security, while the underlying shares are held in a depositary in the issuing company's home country. U.S. investors may buy shares in the foreign company in the form of an ADR. The certificate, transfer, and settlement practices for ADRs are identical to those for U.S. securities.
AMEX American Stock Exchange.
Amivest Liquidity Ratio The Amivest Liquidity Ratio is one type of liquidity measurement which represents the dollar value of trading associated with a one percent change in share price. Amivest is the "creator" of this liquidity measurement. (See liquidity ratio)
analysts See securities analyst
annual report (10 K) Public companies are required to file an annual report with the Securities and Exchange Commission detailing the preceding year's financial results and plans for the upcoming year. Its regulatory version is called "Form 10 K." The report contains financial information concerning a company's assets, liabilities, earnings, profits, and other year-end statistics. The annual report is also the most widely-read shareholder communication. (See management's discussion and analysis)
answer A respondent's written reply to a claim. (See arbitration, claim)
APTC See Association of Publicly Traded Companies
arbitral immunity Arbitrators are protected from suits arising out of their quasi-judicial conduct in arbitration proceedings. (See arbitrator)
arbitrage Arbitrage involves the simultaneous purchase of a security in one market and the sale of it or a derivative product in another market to profit from price differentials between the two markets. (See derivative)

arbitration

A method where conflict between two or more parties is resolved by impartial persons - arbitrators. (See mediation)

arbitration counsel or arbitration administrator The person at the sponsoring organization who handles administrative matters in arbitration proceedings. (See arbitration)
arbitrator A private, disinterested person chosen to decide disputes between parties. (See arbitration)
Arbitrators Code of Ethics A guide for the conduct and ethical responsibilities of arbitrators in commercial disputes.
ask price (offer price) The price at which a Market Maker is willing to sell a security. (See Market Maker, best ask)
associated person A person engaged in the investment banking or securities business who is directly or indirectly controlled by a FINRA member, whether or not this person is registered or exempt from registration with FINRA. Every sole proprietor, partner, officer, director, or branch manager of any FINRA firm.
Association of Publicly Traded Companies APTC, formerly NAOTC) This organization, which is not connected with FINRA, provides publicly-traded companies with a forum for addressing regulatory and legislative issues that affect them.
auction market Stock exchanges, like the New York Stock Exchange and the American Stock Exchange, are auction markets where buyers and sellers meet through a specialist. (See dealer market, Market Maker, specialist)
Automted Confirmation Transaction ServiceSM(ACTSM) NASDAQ service that allows parties to a telephone negotiation to speed the steps involved in completing a transaction.
award The written determination of the arbitrator