Dictionary
- ABC
- Elliott wave terminology for a three-wave countertrend price movement. Wave A is the first price wave against the trend of the market while Wave B is a corrective wave to Wave A. Wave C is the final price move to complete the countertrend price move. Elliott wave followers study A and C waves for price ratios based on numbers from the Fibonacci series.
- Abnormal return
- Abnormal return is measured as the difference between actual return and expected return. Cumulative Abnormal Return or CAR is the sum of abnormal returns calculated over the period which includes the announcement and the publication of the information, as well as some time both before and after that event.
- Account
- There are several types of accounts that most brokers offer: Cash Account, Margin Account, Option Account (for option trading), Custody Account (this account gives power of attorney), IRA Account, Joint Account, etc.
- Account Statement
- Contains data on transactions and states the current condition of the client’s account over a certain period of time.
- Accumulation
- An addition to a trader's original market position. The first of three distinct phases in a major trend in which investors are buying.