• An arithmetic mean of selected stocks intended to represent the behavior of the market or some component of it. One good example is the widely quoted Dow Jones Industrial Average, which adds the current prices of the 30 DJIA's stocks, and divides the results by a predetermined number, the divisor.


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 Dow jones industrial average
 Referenced Terms
 12b 1 funds: Mutual funds that do not charge an upfront or back-end commission, but instead take out up to 1.25% of Average daily fund assets each year to cover the costs of selling and marketing shares, an arrangement allowed by the SEC's Rule 12b-I (passed in 1980).

 Accounts receivable turnover: The ratio of net credit sales to Average accounts receivable, a measure of how quickly customers pay their bills.

 Arithmetic mean return: An Average of the sub period returns, calculated by summing the sub period returns and dividing by he number of sub periods.

 Arms index: Also known as a trading index (TRIN)= (number of advancing issues)/ (number of declining issues) (Total up volume )/ (total down volume). An advance/decline market indicator. Less than 1.0 indicates bullish demand, while above 1.0 is bearish. The index often is smoothed with a simple moving Average.

 Asian option: Option based on the Average price of the asset during the life of the option.

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