Glossary Of Financial Terms(A)

Aggressive Stocks

Aggressive Stocks are stocks with shares involving considerable volatility. The share prices change depending upon market weather.

American Depository Receipts

American Depository Receipts are issued by the depository banks in the United States, and they sometimes help investors in the United States avoid the risks involved in the foreign securities market.

Associated company

An Associated Company can be defined as a company in which some other company or group has ownership on some of their ordinary shares. Generally in such cases the ownership varies between 20-50 percent.

Here the investing company has the power to influence the financial policies of the associated company. In most cases the associated company is independent with regards to its own management system.

Authorized Capital

The Authorized capital of a company can be defined as the total volume of share capital that the company is authorized to issue to its shareholders. In the case of forming a new company, some amount of capital is proposed for registering, and this proposed amount is the Authorized Capital.