Glossary
‘A’ shares Sometimes the ‘A’ shares are the ordinary shares that carry fewer or no votes. However, in many companies ‘A’ shares carry more votes than the ‘B’ shares. The shares may also differ with regard to the size of the dividend.
Abandon The choice made by a holder of a warrant or option to allow it to expire without exercise.
Abnormal return (residual return) A return greater than the market return after adjusting for differences in risk.
Accounting rate of return (ARR) A measure of profitability based on accounting numbers. Profit divided by assets devoted to the activity (e.g. project, entire business) as a percentage.
Accounting standards A set of formal rules and conventions set by the accounting profession to calculate accounting ...
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