A common bias that affects people's estimation of value based on examples that may be loosely related or not related at all to the situation at hand.

Angel Investor

An individual investor—often a high net worth individual—who provides capital for emerging growth companies, typically in exchange for either ownership equity or convertible debt. Angel investments often represent the round of financing between the...

Annual Percentage Rate

The annual cost of a loan, which includes both interest on the loan, and loan-related fees. This is calculated by multiplying the interest rate per payment period by the number of the number of such payment periods in a year.



A person who is entitled to benefit from an annuity.


Annuities are long-term contracts between individuals and insurance companies that individuals typically enter into as part of retirement planning. Individuals make payments to the insurance company, which the insurance company will in turn invest...

Antenuptial Agreement

A contract entered into by two people who intend to marry. It includes provisions, such as spousal support and property distribution, in the event of a later divorce.

Anticipatory Breach

In contract law, anticipatory breach occurs when a party repudiates prior to the date that the performance is due. Anticipatory breach is an excuse for non-performance by the non-breaching party. A party can retract its anticipatory breach provided...

Antitrust Violations

Violations of laws designed to protect trade and commerce from abusive practices such as price-fixing, restraints, price discrimination, and monopolization. The principal federal antitrust laws are the Sherman Act (15 U.S.C. §§ 1-7) and the Clayton Act...


See: Annual Percentage Rate

Arm's Length


Of or relating to transactions between two parties who are independent and do not have a close relationship with each other. Presumably, these parties have equal bargaining power and are not subject to undue pressure or influence from...