B. Glossary
American Stock Exchange (AMEX) Exchange that handles approximately 20% of all securities trades within the U.S.
American-Style Option An option contract that can be exercised at any time before the expiration date. Stock options are American style.
Arbitrage Where the simultaneous purchase and disposal of a combination of financial instruments is such that a guaranteed profit is made automatically.
Ask The price that you buy at and the price that market makers and floor brokers are willing to sell at. The ask stands for what the market makers and floor traders ask you to pay for the stock (or options or other instruments).
At the Opening Order An order that specifies execution at the market opening or else it is cancelled.
ATM (At ...
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