A B C D E-F G H I-J K-L M-N O P Q R S T U V-Z

A
Allocation
This is the amount of stock in an initial public offering (IPO) granted by the underwriter to an investor. For most IPOs, the allocation is significantly less than the indication of interest. The allocations are meted out based on commission volume, trading history and type of investor.

Aftermarket
Trading in the IPO subsequent to its offering is called the aftermarket. Trading volume in IPOs is extremely high on the first day due to flipping and aftermarket purchases. Trading volume can decline precipitously in the following days.

Aftermarket Orders
Underwriters look favorably on investors who buy IPOs in the days after the IPO first goes public. While underwriters cannot solicit aftermarket orders, some expect investors to purchase two or three times their IPO allocation in the aftermarket.

Aftermarket Performance
The price appreciation (or depreciation) in IPOs is measured from the offering price going forward. However, to obtain a better benchmark of IPO aftermarket performance, some investors track performance from the first day close.

American Depository Receipts (ADRs)/American Depository Shares (ADSs)
Non-U.S. companies that wish to list on a U.S. exchange must abide by the regulatory and reporting standards of the Securities and Exchange Commission (SEC). These securities are called receipts because they represent a certain amount of the company's actual shares. Examples of ADRs are France Telecom, British Sky Broadcasting and Equant.

 

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