See: Par

At The Money
An option in which the underlying security is trading exactly at the strike (exercise price) of the option.

Premiums paid or received and commissions are not considered. Thus, "at the money" should not be confused with an investor's break-even point on the option.

See: Deep In The Money; Deep Out Of The Money; In The Money; Out Of The Money

At The Close Order
An order to execute a buy or sell within the last 30 seconds of the trading day. There is no guarantee that the execution price will be the closing price or that the order will be executed at all.

See: Close, The; Execution; Orders

At The Opening Order
An order to execute a buy or sell at the opening price. If the order can not be executed at the opening, it will be automatically canceled.

See: Execution; Opening, The; Orders

Auction Market
System by which securities are traded through brokers or agents on an exchange such as the New York Stock Exchange. Unlike conventional auctions with one auctioneer and many buyers, here there are many buyers and sellers. Brokers competitively bid for the most advantageous price. It is distinguished from the over-the-counter market, where trades are bought by dealers.

See: Over The Counter

Auditor's Report
Often called the accountant's opinion, it is an accounting firm's statement of a corporation's financial documents. The examination assures that the corporation is conforming to the normal and generally accepted practices of accountancy.

See: Generally Accepted Accounting Principles

Autex System
When brokers want to trade large blocks of securities, they will utilize this electronic system to alert other brokers. The actual transaction takes place over-the-counter or on an exchange floor and not on the system.

Authorized Shares
Also called "authorized stock", it is the maximum number of shares of any class that a corporation may issue. This amount is set at the time of incorporation and is part of the Articles of Incorporation. A corporation provides for future increases in authorized stock by the votes of stockholders. The corporation does not have to issue all the authorized shares.

See: Articles Of Incorporation

Automatic Withdrawal
A program offered by a mutual fund to its shareholders. It enables shareholders to withdraw a fixed amount of money on a monthly or quarterly basis. The payment consists of dividends, realized capital gains and income generated from securities held by the fund.

Average Down
A strategy used to reduce the average price paid for a security by buying additional shares of the security at lower prices.

See: Average Up; Dollar Cost Averaging

Average Equity
In a trading account, it is the average daily balance. Although daily fluctuations in equity are normal, average equity is an effective guide in ensuring sufficient equity to meet margin requirements.

See: Margin Requirement

Average Life
The average length of time anticipated that a bond, with a mandatory sinking fund, will be outstanding.

See: Yield To Average Life

Average Up
On a rising market, averaging up is the act of buying an equal number of shares of a security to lower its overall cost basis. For example, if an investor buys an equal number of shares at $20, $23, $25, and $28, the average cost basis will be $24.

See: Average Down; Dollar Cost Averaging

Away From The Market
A phrase used when a "limit order's" asking price is higher or the bid is lower than the current market price for the security.