Page 6 - PRIAA Glossary

ALTERNATIVE INVESTMENTS
Non-standard class of assets with risk/return profiles that diverge from holding traditional trading instruments such as bonds, cash or equity holdings. Typically bought by large institutional asset managers as a means to diversify risk, by holdings in assets such as hedge funds, commodities, timber, real estate or infrastructure.
ALTIPLANO
A mountain range option where the buyer receives a large fixed coupon if none of the underlying assets in the basket breaches a pre-determined barrier during a pre-determined time period. If one of the underlying assets does breach the barrier, the buyer receives the payout of either a plain vanilla or Asian call on the basket.
AMERICAN DEPOSITORY RECEIPT (ADR)
A contract issued by a US custodian bank which represents shares of a foreign company. ADRs avoid some of
the obstacles of cross-border trading by handling all transactions, dividends and payments in the buyer’s currency. ADRs can either be exchange traded or traded over-the-counter (OTC).
AMERICAN OPTION
An option that can be exercised at any time during the term of the option, up to and including its expiration date.
AMERICAN PETROLEUM INSTITUTE (API) GRAVITY
A measure of a specific gravity of crude oil or condensate in degrees.
AUTORITÉ DES MARCHÉS FINANCIERS (AMF)
The regulatory body that administers and enforces securities laws and regulations in Quebec Canada and regulates the Montreal Exchange.
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