Firm Bid or Firm Offer orders are given when someone wants to buy money things at a set time, price, and amount.
Tuesday, July 27, 2010
What is Financial Risk?
Financial Risk is the danger or losing money that shareholders are put in when a company borrows money to do something.
What is a Financial Intermediary?
A Financial Intermediary is an institution such as a bank, life insurance company, credit union or mutual fund which receives cash, which it invests, from suppliers of capital.
What are Finance or Acceptance Company Paper Short-term?
Finance or Acceptance Company Paper Short-term are money things like corporate paper, but sold by finance companies.
What is a Final Prospectus?
Final Prospectus is a report on a company, the information contained within is to be taken as final, over and above what was released in any previous reports.
What is Fiduciary Responsibility?
Fiduciary Responsibility is a position of trust that a money person, like a financial planner, is in when they help a client.
What are Fee-Based Accounts?
Fee-Based Accounts are accounts that charge clients a fee based on how much the account is worth in total.
What are Extraordinary Items?
Extraordinary Items are things a company bought that they won't usually buy.
What is an Extension Date?
Extension Date is the amount of time an Extendible money things maturity date is added to.
What is an Extendible Bond or Debenture?
Extendible Bond or Debenture is a money thing that gives the buyer the right to extend the maturity date.
What does Ex-Rights mean?
Ex-Rights means that someone who buys a share will not get rights with it.
What is a Expiration Date?
Expiration Date is when any rights on an option are no longer valid and can not be used.
What is Expectations Theory?
Expectations Theory is the idea that the amount of interest that people make on investments is influenced by people's understanding of the economy.
What does Expansion mean?
Expansion is a point in the business cycle when all companies seem to be making more and more money.
What is a Exercise Price?
Exercise Price is how much a derivative must cost in order to be swapped for a share.
What is an Exercise Notice?
Exercise Notice is a note sent out by someone who bought an option, saying that the rights the option gives will now be used.
What is a Exempt Market?
Exempt Market is a market for people and companies who know a lot about money things. This market is a place with fewer rules, where money things are bought and sold without much information being shared about them, because it is understood that whoever buys and sells on this market knows what they are doing already.
What is a Exempt List?
Exempt List is a group of money thing people and companies who get to buy some of a company that has just released stock before anyone else and without having to wait to receive a prospectus about the new company.
What is Ex-Dividend?
Ex-Dividend is a time period two days before a certain date during which people are not entitled to divends that have been promised.
What are Exchange-Traded Funds?
Exchange-Traded Funds (ETFs) are big pools of stocks that hold shares in the same proportion as a specific index. An ETF based on the TSX would go up and down at the same time as that market.
What does Exchange Rate mean?
Exchange Rate is how much one currency will buy you of another, like how many US dollars a Canadian dollar will buy you.
What is an Exchange Fund Account?
An Exchange Fund Account is an account the Government runs to buy and sell money on the foreign market.
What are Event-Driven Hedge Funds?
Event-Driven Hedge Funds are big pools of money things run by managers who try to make money off of predicting the results of world events.
What are Eurobonds?
Eurobonds are bonds that are issued in a foreign land with domestic money, like if a Canadian company sold bonds in Canadian dollars in Germany.
What are Escrowed or Pooled Shares?
Escrowed or Pooled Shares are pieces of a company which can give voting rights and dividends but can not be bought or sold unless given permission.
What is The Equity Method?
The Equity Method, in accounting, is a way to show how much money a company makes from owning a large piece of another company.
What is Equity Income?
Equity Income is money a company makes when it owns 20-50% of a subsidiary, another company.
What is a Equipment Trust Certificate?
Equipment Trust Certificate is a type of bond that companies sell which use items the company owns, traditionally rail cars, as collateral in case the company fails.
What is Equilibrium Price?
Equilibrium Price is when a product costs so much that the amount demanded and the amount supplied is the same.
What is a Enterprise Multiple?
Enterprise Multiple (EM) is a ratio that compares a company's Enterprise Value, what it would cost to buy it, to how much money it makes before it has to pay its debts.
What are Emerging Industries?
Emerging Industries are new areas of the economy that are just getting started, they are often unpredictable.
What is An Embedded Option?
An Embedded Option is the option to trade in certain types of money things, like bonds, for other types, like shares.
What is The Elliot Wave Theory?
The Elliot Wave Theory is the idea that there are predictable patterns found in nature and that money and stock markets follow patterns like this.
What is The Election Period?
The Election Period is the time frame in which it is possible to trade a retractable bond in for common shares of a company.
What is the Efficient Market Hypothesis?
Efficient Market Hypothesis is the idea that people think about what they invest in, so the value of companies is rational.
What does Economies of Scale mean?
Economies of Scale is something we've noticed about business, that the more actual units of a product you make, the less it costs to make each unit.
What are Economic Indicators?
Economic Indicators are signs that show how well the economy is doing.
What does Earnings Per Share mean?
Earnings Per Share (EPS) shows how much money a company made for each share it has sold. For example, if a company made a million bucks and had a million shares, their EPS would be 1.
What does Earnings or Income Statement mean?
Earnings or Income Statement is a list of what a company made, profit-wise during the course of the year.
What is Earned Income?
Earned Income is money you make by working or by renting out something you own.
What does Dynamic Asset Allocation mean?
Dynamic Asset Allocation is when a person's money things are bought in the same ratio that they exist in as on a stock exchange.
Friday, July 23, 2010
What does Duration mean?
Duration is a way to show how much a bond is likely to go up and down in price. A bigger duration means the price will probably change a lot and is therefore more risky.
What is a Due Diligence Report?
A Due Diligence Report is a report that a company sends out when it sells shares in order to inform people about what they are buying.
What is a Drawdown?
A Drawdown is when the Bank of Canada takes deposits from other banks so that there is less money to lend out in order to raise interest rates. If there is less money available to lend out, banks will be able to ask for more interest for the money that they do lend out, since more people will be competing for less loan money.
What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average (DJIA) is an average of the value of 30 large, well-known companies in America. This is used to show which direction the New York Stock Exchange is going.
What are Domestic Bonds?
Domestic Bonds are bonds that are sold by a Canadian company for Canadian dollars.
What is Disposable Income?
Disposable Income is money that you are free to spend after you've paid for everything you need to.
What is a Discretionary Account?
A Discretionary Account is a money things account where the owner has given someone else, generally a manager, permission to buy and sell money things for him or her.
What are Discouraged Workers?
Discouraged Workers are people without jobs who are capable of working but who haven't tried to find a job for a month.
What is the Discount Rate?
The Discount Rate is how much interest will be paid to someone who buys a bond.
What are Discount Brokers?
Discount Brokers are companies that buy and sell money things for less cash than most brokers.
What does Discount mean?
Discount is how much cheaper than its listed price a money thing is sold for.
What is Disclosure?
Disclosure is giving all info needed to make an informed decision about buying a money thing.
What is the Director's Circular?
The Directors’ Circular is info given to shareholders by the director of a company to notify them of a bid to buy the company. The Circular whether or not the company plans to sell and their reasons for doing so.
What are Directional Hedge Funds?
Directional Hedge Funds are pools of money things that are run by a manager who buys certain money things based on his thoughts on the market going up or down.
What is Dollar Cost Averaging?
Dollar Cost Averaging is when you invest a set amount of cash in a certain money thing at a set time.
What is a Dividend Yield?
Dividend Yield is a ratio that shows how much money a stock will pay in dividends, shown as a percentage of the stock's price.
What is a Dividend Tax Credit?
Dividend Tax Credit is a plan to encourage Canadians to buy shares that pay out dividends. The owner of the stock pays tax based on increasing the value of the dividends by 45% then receiving a tax credit of 19%. This means the owner of the stock gets 45% more of the tax taken off.
What is a Dividend Reinvestment Plan?
Dividend Reinvestment Plan is an agreement to use dividends to buy more of the same stock.
What is a Dividend Payout Ratio?
Dividend Payout Ratio shows what percentage of a company's net earnings will be paid out in dividends.
What is the Dividend Discount Model?
The Dividend Discount Model compares a stocks price with how much money the issuing company will pay out in dividends.
What is a Dividend?
A Dividend is money regularly paid from a company's profits to shareholders. Dividends are wonderful.
What is Diversification?
Diversification is when you buy different kinds of money things to try and make your investments a little less risky.
What is a Derivative?
A Derivative is a money thing whose value goes up and down depending on the value of some other money thing, like a stock or bond.
What is Depreciation?
Depreciation is a bookkeeping entry where the worth of an asset is slowly shown to be less and less over time as it wears out or gets used up.
What is a Deposit Based Guarantee?
A Deposit-Based Guarantee is when each payment made into a segregated fund over time has a different guarantee and guarantee date.
What is Depletion?
Depletion is when a company uses up natural resources it uses, such as oil and gas.
What is Demutualization?
Demutualization is when insurance companies become public companies, policy holders become shareholders.
What is Demand Pull Inflation?
Demand Pull Inflation is when things cost more because people want to buy it so much. Companies can ask for more money so they do.
What is Regular Delivery?
Regular Delivery is when the sellers of a stock deliver it by the third business day after it was sold.
What is Delayed Delivery?
Delayed Delivery is when a money thing is sold with the understanding that it will take longer than normal to deliver it.
What is Delisting?
Delisting is when a money thing is taken off a stock exchange, sometimes because it isn't worth enough to be on the exchange anymore.
What is a Delayed Opening?
A Delayed Opening is when a money thing isn't traded right away because there have been so many people trying to buy and sell it.
What is a Delayed Floater?
A Delayed Floater is a preferred share that pays a set amount as a dividend for a certain period of time, then the amount paid changes and becomes variable.
What is a Defined Contribution Plan?
A Defined Contribution Plan is a pension plan where a certain amount of money is paid into it but the amount of money paid out is not yet certain.
What is a Defined Benefit Plan?
A Defined Benefit Plan is a pension plan that pays out a certain amount of money based on a formula.
What is a Deferred Sales Charge?
A Deferred Sales Charge is money charged for selling units of a fund. Less and less money will be charged if the owner of the fund waits until a certain time to sell, thus encouraging people to hold on to funds for the long run.
What is Deferred Revenue?
Deferred Revenue is when a company gets paid in advance for a product or service it will provide in the future.
What is a Deferred Profit Sharing Plan?
A Deferred Profit Sharing Plan, or DPSP, is an agreement where a company gives its employees some of the money the company earns.
What are Deferred Preferred Shares?
Deferred Preferred Shares are shares that will pay a dividend but not until a certain future date.
What are Deferred Charges?
Deferred Charges are assets on a balance sheet that show something that the company has paid for in the past that they will continue to benefit from in the near future, for example, paying rent.
What is a Deferred Annuity?
Deferred Annuity is money payed out regularly to the holder of an insurance contract.
What is a Defensive Stock?
A Defensive Stock is a share of a company that usually does okay and pays dividends, for example an electricity company.
What is Default Risk?
Default Risk is the chance that a debt seller will not be able to pay the money they owe.
What does Default mean?
Default, when talking about bonds, is when the borrower hasn't done what they are supposed to, for example, by not making interest payments or not repaying the value of the bond when the time comes.
What is a Deemed Disposition?
Deemed Disposition is when property changes hands without their being a sale, for example, when someone dies or emigrates.
What is a Declining Industry?
A Declining Industry is an area of business that makes less money than the economy.
What is a Debt Ratio?
Debt Ratios are a way to tell how much money a company has or can get to pay off their debts.
Wednesday, July 21, 2010
What is a Debt/Equity Ratio?
The Debt/Equity Ratio compares how much a company owns to how much it owes. A higher ratio means more risk.
What is Debt?
Debt is borrowed money. The borrower usually pays a little bit of money regularly, called interest, until the time when they have to repay the full amount.
What is a Debenture?
A Debenture is a money thing sold by a government or company backed by the general value of the seller instead of by any specific thing the seller owns.
What is a Death Benefit?
The Death Benefit is how much money a segregated fund policy pays when the person on whose life the policy is based dies.
What is the Dealer's Spread?
The Dealer’s Spread is how much a seller of a money thing wants you to pay for it when compared to how much people are willing to spend.
What is a Dealer Member?
A Dealer Member is a stocker broker or investment dealer who is a member of the Investment Industry Regulatory Organization of Canada.
What is a Dealer Market?
A Dealer Market is place where money things are bought and sold between dealers instead of in a public market like the TSX.
What is a Day Order?
A Day Order is a buy or sell order that can only be used on the same day it was made. Most orders are Day Orders.
What is Cyclical Unemployment?
Cyclical Unemployment is how many people lose jobs when the economy is bad.
What is a Cyclical Stock?
A Cyclical Stock is a money things that usually goes up in value when the economy is good and goes down when the economy is bad.
What is a Custodian?
A Custodian is a company that holds the money things owned by a mutual fund or segregated fund.
What is CUSIP?
The Committee on Uniform Security Identification Procedures, or CUSIP, is a standard of rules for money things in North America.
What does Current Yield mean?
Current Yield is how much cash a money thing will pay out in interest each year, expressed as a percentage of the money things current value.
What is a Current Ratio?
The Current Ratio is a way to show how much what it owns is worth when compared to how much it owes. A good Current Ratio is 2 to 1.
What are Current Liabilities?
Current Liabilities is money that a company will have to pay in the upcoming year.
What are Current Assets?
Current Assets are things that a company owns that are worth money, like inventory, for which the company will be paid for for in the upcoming year.
What is the Current Account?
The Current Account is a statement of how much money has flowed between Canada and other countries.
What does Cum Rights mean?
Cum Rights means with rights. If you buy a stock before a certain date, called the ex-rights date, your stock is Cum Rights and you get rights that the company has promised.
What does Cum Dividend mean?
Cum Dividend means with dividend. If you buy shares before a certain date, called the ex-dividend date, your shares are Cum Dividend and you will get a dividend.
What is a Cross on the Board?
A Cross on the Board is when a broker has an order to buy and one to sell the same money thing at the same price.
What is a Covered Writer?
A Covered Writer is someone who owns a stock and who sells options to make cash off the stock if the market goes the way they want.
What is a Covenant?
A Covenant is a promise or agreement that a company selling a money thing will make, for example, that they won't take on any more debt.
What is the Coupon Rate?
The Coupon Rate is how much interest will be paid on a bond. A bond that costs $10000 with a 10% coupon would pay $1000 in interest every year.
What are Country Banks?
Country Banks aren't actually banks. They are people other than banks, like insurance companies, that lend money to investment dealers on the short-term.
What is Cost-Push Inflation?
Cost-Push Inflation is when the price of a product increases because it now costs more to make it for some reason, like war in another country stopping oil drilling.
What does Cost of Goods Sold mean?
Cost of Goods Sold is an entry on an earnings statement that says how much the raw materials that make finished products cost.
What is the Cost Accounting Method?
Cost Accounting Method is used when only 20% of a company is owned by another company.
What does Correlation Coefficient mean?
Correlation Coefficient is a way to tell how the returns of two different money things are related.
What does Correlation mean?
Correlation is a way of telling if two money things go up and down on the market at the same time. If they go up and down at exact same time, they have a positive correlation, +1. If one goes up when the other goes down, they have negative correlation, -1. Owning money things that go exactly in the opposite direction to each other is a good way to reduce risk, because it means that when one goes up, one goes down, and you have balance.
Sunday, July 18, 2010
What is a Corporation?
A Corporation is a business that is legally separate from its owners, so, for example, the company can be sued, not the people who own it.
What is a Corporate Note?
A Corporate Note is a money thing that companies sell, paying out a bit of interest for a bit of investment, but the note doesn't give the buyer any right to own any of the company's property if the company goes under.
What is Convertible Arbitrage?
Convertible Arbitrage is when someone looks to see if they can make money by trading a convertible money thing for common stock.
What is a Conversion Ratio?
The Conversion Ratio is how many common shares convertible shares are worth when they are converted.
What does Conversion Privilege mean?
Conversion Privilege is the right to trade a bond for common shares.
What is the Conversion Price?
The Conversion Price is how much a convertible stock or bond must be worth before it can be converted into common stock.
What is a Contributed Surplus
A Contributed Surplus is the amount a profit a company makes by selling stocks for more than they were originally worth.
What is a Contract Holder?
A Contract Holder, when talking about segregated funds, is the person who owns the contract.
What is Continuous Disclosure?
Continuous Disclosure is a rule in Ontario that says that a company must tell the press when there is a change in the value of the company.
What is a Continuation Pattern?
A Continuation Pattern is a trend on a chart that shows no sign of changing soon.
What is the Consumer Price Index?
The Consumer Price Index (CPI) is a list of the prices of certain common goods.
What are Constrained Share Companies?
Constrained Share Companies are businesses in Canada that have limits on how many of their shares can be sold to people from other countries.
What are Consolidated Financial Statements?
Consolidated Financial Statements are reports about all the companies owned by a conglomerate.
What is Commission?
Commission is a fee charged for buying something in addition to the normal cost.
What is Commercial Paper?
Commercial Paper is a money thing that is backed up by things a company owns.
What is a Collateral Trust Bond?
A Collateral Trust Bond is a money thing that is backed up by other money things.
What are Coincident Indicators?
Coincident Indicators are signs, like unemployment, that go up and down with the economy.
What is Closet Indexing?
Closet Indexing is when a fund manager buy stocks that are made up of companies on a particular index, so that when the index goes up in value the fund does too.
What is a Closed-End Fund?
A Closed-End Fund is a money thing that sells shares that can be sold like stocks on the market.
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