Page 8 - PRIAA Glossary

ARBITRAGE
An investment strategy in which the investor takes advantage of market inefficiencies in a riskless (or very low-risk) manner, frequently across markets in different geographies. This can be achieved by buying a security in a lower-priced market and selling the same security in a higher-priced market, or taking advantage of a futures contract which is priced above the underlying stock’s current price.
ARBITRAGE PRICING THEORY (APT)
An alternative to the capital asset pricing model (CAPM)
for asset pricing. The APT model uses the asset’s expected return and includes the risk premium of macro-economic factors, such as surprises in gross national product (GNP), shifts in the yield curve or surprises in inflation, in modelling expected value of the portfolio.
ALBERTA SECURITIES COMMISSION (ASC)
The regulatory body that administers and enforces securities laws and regulations in Alberta Canada and regulates the TSX Venture exchange.
ASIA SECURITIES INDUSTRY & FINANCIAL MARKETS ASSOCIATION (ASIFMA)
Association which aims to promote growth, development and transparency of the Asian capital market and to assist its integration into the global capital market.
ASIAN IN
An Asian option whereby the strike price is the average level of an underlying instrument over a predetermined period.
ASIAN OPTION
An option where either the strike price or the settlement price is the average level of an underlying instrument over a predetermined period. The averaging can be either a geometric or arithmetic average.
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