Absolute Priority
What is an 'Absolute Priority' An absolute priority is a rule that stipulates the order of payment - creditors before shareholders - in the event of liquidation. The absolute priority rule is used in bankruptcies to decide what portion of payment will be received by which participants. Debts to creditors will be paid first and shareholders (partial...
Above Ground Risk
What is 'Above Ground Risk' Non-quantifiable risks that can adversely affect a project or investment. Above ground risk is generally used in the energy industry to refer to non-technical risks such as environmental issues and the regulatory climate. More broadly, above ground risk refers to a wide range of somewhat nebulous risks such as political risk, corporate...
Absolute Breadth Index (ABI)
What is 'Absolute Breadth Index - ABI' A market indicator used to determine volatility levels in the market without factoring in price direction. It is calculated by taking the absolute value of the difference between the number of advancing issues and the number of declining issues. Typically, large numbers suggest volatility is increasing, which is likely to...
Academy Of Financial Divorce Practitioners
What is 'Academy Of Financial Divorce Practitioners' An organization dedicated to the development of financial expertise with respect to divorce. The Academy of Financial Divorce Practitioners trains its members in the financial aspects of divorce, such as alimony, property settlements, child support and retirement assets. Members of the academy, known as certified financial divorce practitioners (CFDPs), supply...
Accelerated Option
What is 'Accelerated Option' This term refers to an option in an insurance contract, usually in the form of a rider, that allows for accelerated benefits or partial benefits sooner than they would otherwise be payable. Alternatively, in life insurance contracts, an accelerated option can refer to the option that allows the policy holder to apply the...
Abacus
What is 'Abacus' 1. A calculation tool used by sliding counters along rods or grooves, used to perform mathematical functions. In addition to calculating the basic functions of addition, subtraction, multiplication and division, the abacus can calculate roots up to the cubic degree. 2. A semi-annual accounting journal published and edited by the University of Sydney....
Accredited Investor
DefinitionAn accredited or sophisticated investor is an investor with a special status under financial regulation laws. The definition of an accredited investor, and the consequences of being classified as such, vary between countries. Generally, accredited investors include high-net-worth individuals, banks, financial institutions and other large corporations, who have access to complex and higher-risk investments such as venture capital, hedge...
Above The Line Deduction
DefinitionIn the United States tax law, an above-the-line deduction is a deduction that the Internal Revenue Service allows a taxpayer to subtract from his or her gross income in arriving at "adjusted gross income" for the taxable year. These deductions are set forth in Internal Revenue Code Section 62. A taxpayer's gross income minus his or her above-the-line deductions...
Abnormal Spoilage
What is 'Abnormal Spoilage' The waste or wrecking of inventory beyond what is expected in normal business processes. Abnormal spoilage can be the result of broken machinery or from inefficient operations, and is considered to be at least partially preventable. In accounting, abnormal spoilage is recorded as a separate item: loss from abnormal spoilage. Explaining...
Above The Market
What is 'Above The Market' An order to buy or sell at a price set higher than the current market price of the security. Examples of above the market orders include: a limit order to sell, a stop order to buy, or a stop-limit order to buy. Explaining 'Above The Market' This is a...