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Glossary

Glossary

Straight talking explanations of common financial terms

AER

Annual equivalent rate. AER shows you what the interest on a savings account would be if the interest was compounded and paid out to you each year (instead of monthly or over any other period). You may earn less than the AER because your money may not be invested for as long as a year. Sometimes firms use Compound Annual Rate (CAR) instead of AER on savings and investment products.

AEX

Amsterdam Exchanges, stock exchange of Amsterdam before this was absorbed into Euronext. An index of the 25 most traded funds has been provided.

Annual General Meeting (AGM - Shareholders)

This yearly meeting is the single event whereby shareholders are able to gather and ask the board of directors questions pertaining to corporate health and strategy. Proper notice must be given to shareholders with regards to meeting times and agenda

Annual Growth

The compounded annualized rate of growth of Funds revenues, earnings, dividends, or other figures.

Asset classes

Major categories of financial securities. The three major asset classes are cash investments (also called cash reserves or money market instruments), bonds, and stocks. Some would include property (real estate) and commodities as separate asset classes.

Asset Management

Activities aimed at The management of the financial assets in order to maximize return. Maintaining those assets and achieving the predicted returns.