Highly touted and respected American Economist and former Chairman of the Board of Governors of the Federal Reserve from 1987 to 2006. Also, Chairman of the Fed’s principle monetary policymaking committee known as the Federal Open Market Committee (FOMC). Greenspan was the first person ever appointed to chair the Fed for five consecutive terms after his initial appointment by then President Ronald Reagan.

Adjusted Gross Income (AGI) – The amount of a person’s income in which federal income tax is calculated from. This is income minus adjustments including IRA contributions, pension plans, and alimony but before adjustments that include state and local taxes, interest and medical expenses.

Accrual Accounting – Method within accounting in where expenses and income are accounted for as if they have already been earned or received. This form of accounting is considered standard practice for most companies.

Affiliated Companies – A subsidiary, or commercial entity, which has a relationship either legally or financially, with a peer company or a much larger company. Also pertains to a company having less than 50% ownership in another company.

Affiliated Person – A person, namely a director, executives and/or owners, in the position of having influence on affiliated programs and assisting affiliates to help generate more sales.

The goal at BetterTrades is to help students learn more about the stock market and then use that knowledge to make better trading decisions. One of the first steps toward becoming an educated trader is to get familiar with the terminology used in the stock market. To help speed your progress, BetterTrades brings you stock and options terms that you need to learn. Knowledge is the first step toward making better trades. This is why BetterTrades Brings you the following trading terms:

Active Management – The use of managers, co-managers, or a team of managers with the goal of having a portfolio that outperforms the market average. With use of technical and analytical research, the manager will seek stocks that will provide a well-above average return.

Activity Based Management – A business method used to identify and evaluate procedures within the company using cost-control methods to carry out analysis to improve strategic and operational decisions.