What Is an Adjunct Account? An adjunct account is an account in financial reporting that increases the book value of a liability account. An adjunct account is a valuation account from which credit balances are added to another account. The concept of an adjunct account can be contrasted with the concept of a contra account
What Is Adjustable Life Insurance? Adjustable life insurance is a hybrid of term life and whole life insurance that allows policyholders the option to adjust policy features, including the period of protection, face amount, premiums, and length of the premium payment period. Adjustable life policies also incorporate an interest-bearing savings component, known as a “cash
What Is an Adjustable Peg? An adjustable peg is an exchange rate policy in which a currency is pegged or fixed to a major currency such as the U.S. dollar or euro, but which can be readjusted to account for changing market conditions or macroeconomic trends. An example of managed currency or “dirty float”, these periodic adjustments are usually intended to
What Is the Adjusted Closing Price? The adjusted closing price amends a stock’s closing price to reflect that stock’s value after accounting for any corporate actions. It is often used when examining historical returns or doing a detailed analysis of past performance. Key Takeaways The adjusted closing price amends a stock’s closing price to reflect
What Is Adjusted Basis? Adjusted basis refers to a material change to the recorded initial cost of an asset or security after it has already been owned. Updating the original purchase cost by taking into account any increases or decreases to its value is primarily used to compute the capital gain or loss on a
What Is the Active Share Study? The active share study was an academic study conducted by researchers from the Yale School of Management in 2006. The study examined how much a mutual fund’s holding differed from its benchmark. The difference is referred to as the active share. The study revealed a positive correlation between a
What Is an Active Trust? An active trust is a trust wherein the trustee has to take additional actions beyond passively dealing with property for the benefit of the beneficiary. Active trusts are also referred to as special trusts. An active trust is different than a passive trust, or bear trust. In a passive trust, the trustee’s
What Is ActiveX? ActiveX is a software framework from Microsoft (MSFT) that allows applications to share functionality and data with one another through web browsers, regardless of what programming language they’re written in. ActiveX add-ons allowed early web browsers to embed multimedia files or deliver software updates to users. Microsoft introduced ActiveX in 1996. Many
An activist investor, typically a specialized hedge fund, buys a significant minority stake in a publicly traded company in order to change how it is run. The activist investor’s goals may be as modest as advising company management or as ambitious as forcing the sale of the company, divestitures or restructuring, or replacing the board
What Is an Activity Charge? An activity charge is a fee charged by banks in response to specific account activities, such as transferring funds between accounts, withdrawing funds using an automated teller machine (ATM), or when a checking account does not meet its minimum deposit requirement. The exact activity charges made by a bank will
