Economic Terms

Economic Terms

EconomicFile Economic Terms guide & articles

Arithmetic Means

If there is a series of numbers, take the sum of all numbers then divided it by the count of all those numbers, the value you gain is known as the Arithmetic Mean. Arithmetic Mean is also defined as “A mathematical representation of the typical value of a series of numbers, computed as the sum of all the numbers in the series divided by the count of all numbers in the series.”

Amsterdam Stock Exchange – AEX

Amsterdam Stock Exchange (AEX) is world’s oldest stock exchange founded in 1602 by the Dutch East India Company based in Amsterdam. Therefore, it is considered as the former name for the stock exchange. It was merged with the Brussels Stock Exchange and the Paris Stock Exchange to form Euronext in 22 September 2000. Now, it is known as Euronext Amsterdam.

American Standard Code for Information Interchange - ASCII Codes

ASCII stands for American Standard Code for Information Interchange, is a type of code for data transmission, sometimes directly written as American Code for Information Interchange. These codes represent text in computers, communications equipment, and other devices that use text using a seven-bit encoding system and an eight-bit system.

Alpha Generator : Definition

Alpha generation is referred to generating excess returns, where, Alpha generation platforms are securities or tools used by hedge funds, banks, CTAs and other financial institutions to help develop and test quantitative trading strategies. Hence, Alpha Generator could be defined as:

What is Actuarial Consultant and Actuarial Consulting

An Actuary or Actuarial Consultant is a professional in business who deals with the measurement and management of risk and uncertainty under the subject actuarial science. Therefore we can say actuarial consulting is a process in which clients are advised methods, processes, policies, plans, etc. they should adopt when making decisions related to finance, insurance- or pension.

Actuals in Business

Actuals is a term in business or economics used for physical commodities or financial instruments which are traded in futures contracts. In other words, “Actual” is a physical commodity that underlies a futures contract or is traded in the physical market respectively.

Adaptive Market Hypothesis

Adaptive Market Hypothesis is a kind of approach which suggests that the traditional models of modern financial economics can be coexists with behavioral models. Adaptive Market Hypothesis was proposed by famous economist and MIT Andrew Lo in 2004. He presented this idea and approach by applying the principles of evolution to financial interactions, in which, he defines Adaptive Market Hypothesis

Advance Decline Line

The advance/decline line is one of the technical indicators of stock market to measure the number of individual stocks participating in a market rise or fall. Advance decline line indicator is used by investors in stock market.

Agency Costs Financial Economic Term

Agency Costs is an economic concept which deals with the issue or conflict of between shareholders and management. It is a type of internal cost that arises from, or must be paid to, an agent acting on behalf of a principal.

Aggressive Growth Fund

Aggressive Growth Fund is also known as capital appreciation fund and maximum capital gains fund. Here, capital appreciation referred to an increase in the price or value of assets. Hence, Aggressive Growth Fund is a fund that attempts to achieve the highest capital gains.