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Accrued Interest
Interest deemed to be earned on a security but not yet paid to the investor.
Annual General Meeting (AGM)
The AGM of a company gives its shareholders a yearly opportunity to question the board of directors and go over the company's figures for the previous year. The purpose of the meeting is for the shareholders to approve the report and accounts, elect (or re-elect) the directors and appoint independent auditors. Holders of a mutual fund which is structured as a company are, in effect, the shareholders. They will be given the opportunity to attend the AGM and approve the annual report and accounts and the election of the directors.
Annual Management Fee
A charge or fee paid annually by a fund to its investment manager who oversees and manages the fund's holdings. The management fee is usually between 0.5% and 1.5% of the fund's net asset value. The size of the fee depends upon the skill involved in the management of the fund.
Annual Report
An annual report is a report on the company's operations for the past year. It is a very useful document for shareholders to keep an eye on their investment. A typical annual report will have:
• A section outlining the company's philosophy or how it does business.
• Financial information, including a profit and loss account showing the results of that year's trading and the balance sheet. The balance sheet will show the company's assets and liabilities at the end of that year compared with the previous year.
• Detailed reports on each section of company's operations.
• An auditors' statement confirming that the figures within the report have been reviewed by independent accountants and if it is the case, that they give a 'true and fair' view of the company's financial position.
Ask/Bid Prices
The market price of a security: the ask is the *market price if you are buying and the bid is the price if you are selling.
Asset Allocation
When investors divide their money amongst various types of investments, such as stocks, bonds and short-term investments they are allocating their assets. The way in which their money is divided is called the 'asset allocation'.
Auditor’s Report
Often called the accountant’s opinion. It is the statement of the accounting firm’s work and its opinion of the company’s financial statements, especially if they conform to the normal and generally accepted practices of accountancy.
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