Yield Spread is how much more one money thing will make than another.
Wednesday, August 18, 2010
What is Working Capital Ratio?
Working Capital Ratio is what a company owns divided by what it owes.
What is Waiting Period?
Waiting Period is how long after a preliminary prospectus is released the real one is.
What is a Trailer Fee?
Trailer Fee is what a fund manager charges you when you sell units of the fund.
What are Underlying Securities?
Underlying Securities are the money things that derivatives are based on
What are Two-Way Securities?
Two-Way Securities are money things that can be traded for other money things, like say preferred shares for common shares.
Monday, August 16, 2010
What is a Trade-Weighted Exchange Rate?
Trade-Weighted Exchange Rate shows how good the Canadian dollar is doing compared to ten other currencies.
What is the Top-Down Approach?
Top-Down Approach is when you study the economy, the industry a company is in, then the company itself.
What are Tilting Yield Curves?
Tilting Yield Curves happen when long term rates drop and short term rates rise.
What are Syndicates?
Syndicates are groups of money thing people who join together to buy money things.
What is Suspension of Trading?
Suspension of Trading is when a company stops people from buying its stock.
What is Technical Analysis?
Technical Analysis is studying a company to see if you should invest in it.
What is Tax Loss Selling?
Tax Loss Selling is when you sell a money thing and lose money to make money in the long run by saving on your taxes.
What are Systematic Withdrawal Plans?
Systematic Withdrawal Plans let you take cash out regularly from a fund.
What is SEDAR?
System for Electronic Document Analysis and Retrieval (SEDAR) is a place to find a companies official documents.
What is SEDI?
System for Electronic Disclosure by Insiders (SEDI) is a place for insiders to report their dealings with companies.
What is a Support Level?
Support Level is the price at which there are more people who wanna buy a stock than sell it.
What is Supply-Side Economics?
Supply-Side Economics says that tax rates and government spending fix problems in the economy
What are Superficial Losses?
Superficial Losses is when you buy back a money thing you sold within 30 days.
What are Structured Products?
Structured Products are money things that do as well as indexes or currencies.
What is Structural Unemployment?
Structural Unemployment is how many people are usually out of work on a normal day.
What are Strike Prices?
Strike Prices are what a stock has to be worth for the holder of an option to buy it.
What are Street Names?
Street Names are money things registered in the name of the company who bought them for a client, instead of in the client's name.
What is Strategic Asset Allocation?
Strategic Asset Allocations are goals for portfolios that say to buy certain money things in set combos.
What are Stock Splits?
Stock Splits are when a stock is worth too much so a company splits them into smaller, cheaper ones.
What are Stock Savings Plans?
Stock Savings Plans let you get cash back on your tax refund for buying stock.
What is a Statement of Material Facts?
Statement of Material Facts give important facts about a company.
What is a Statement of Cash Flow?
Statement of Cash Flow shows what a company spent money on and how it made money that year.
What is an SRO?
SROs or self regulatory organizations are money thing companies that run the industry.
Thursday, August 12, 2010
What are SSROs?
Sponsoring Self-Regulatory Organization (SSRO) are IIROC, the TSX Group of Companies, and the Bourse de Montréal.
What is the S&P/TSX Composite Index?
S&P/TSX Composite Index shows how good the biggest companies in canada are doing.
What are Speculators?
Speculators are people who try to make cash off the up and down movement of the price of money things in the market instead of by buying companies for the long term.
What are SPRAs?
Special Purchase and Resale Agreements (SPRAs) are used when the bank of canada wants to keep interest rates from going up by lending out cash at a lower rate.
What are SPDRs?
SPDRs or Standard & Poor Depository Receipts are money things that mirror the S&P 500 index.
What are Soft Retractable Preferred Shares?
Soft Retractable Preferred Shares may be traded in for cash or common shares.
What is a Short Position?
Short Position is when you borrow stock and sell it because you think the price is gonna go down. If it goes down you can buy back the amount you borrowed, now at a reduced price, and give it to the lender, keeping the difference as profit.
What is the Short Form Prospectus Distribution System?
Short-Form Prospectus Distribution System is a place to put a brief prospectus.
What is Shareholder's Equity?
Shareholders’ Equity is how much cash is invested in a company's stock by investors.
What are Secondary Markets?
Secondary Markets are places like the Toronto Stock Exchange where money things are sold.
What is an SRA?
Sale and Repurchase Agreements (SRAs) are when the bank of canada takes loans from banks in canada at a higher interest rate than they would get elsewhere.
What is Risk Premium?
Risk Premium is how much more a money thing is worth than a risk free investment.
What is Securitization?
Securitization is when you convert a loan into a money thing like a stock or bond.
What are Securities Administrators?
Securities Administrators make sure people in the money thing business are doing it right.
What is Right of Withdrawal?
Right of Withdrawal lets people get their money back for a stock if they bought it before the prospectus arrived and when it did it had bad news.They got two days to do this.
What is Right of Rescission?
Right of Rescission lets people get their money back for a stock if the prospectus is wrong.
What is Right of Action for Damages?
Right of Action for Damages lets people sue a company if their prospectus is wrong.
What are Revocable Beneficiaries?
Revocable Beneficiaries are people who get cash from a segregated fund but who can lose that right if the contract holder says so.
What is a Reverse Split?
Reverse Split is when a company's stock isn't worth that much any more so they combine your stock into fewer stocks that are worth more money.
What are Reversal Patterns?
Reversal Patterns are trends in prices that mean a big price change is coming.
What is Return on Invested Capital?
Return on Invested Capital shows how much cash a company is making with the cash it gets from investors.
What is Return on Equity?
Return on Equity shows how much cash a company is making with the cash it gets from investors.
What are Retained Earnings Statements?
Retained Earnings Statements show how much cash a company made or lost in a year.
What are Retained Earnings?
Retained Earnings is how much cash a company made after it paid all its debts.
What are Retail Investors?
Retail Investors are people who buy and sell money things for themselves.
Wednesday, August 11, 2010
What are Restricted Shares?
Restricted Shares are like normal stock except they dont give you voting rights.
What is a Resistance Level?
Resistance Level is the price at which there are more people buying a money thing than selling it.
What are Resets?
Resets are things that people who own segregated funds are allowed to do. It lets you extend the contract for another ten years.
What are Relative Value Hedge Funds?
Relative Value Hedge Funds buy money things from a place where they are being sold cheap and sell them somewhere they are being bought for more cash.
What are Relative Strength Graphs?
Relative Strength Graphs show how good a company is doing compared to the market.
What is Reinvestment Risk?
Reinvestment Risk is the danger that if you take cash you made and reinvest it you may actually lose money.
What is Regular Delivery?
Regular Delivery is when a money thing you bought officially becomes yours.
What are Registrars?
Registrars are companies that are hired by other companies to sell their stock for them.
What is an RRSP?
Registered Retirement Savings Plan (RRSP) are places to save cash tax free for retirement.
What is an RRIF?
Registered Retirement Income Fund (RRIF) is a place to save cash for retirement. When you reach a certain age, the cash is paid to you in instalments.
What is a RPP?
Registered Pension Plan (RPP) are places to save up cash tax free for your retirement. Both you and your employer add cash to it.
What are RESPs?
Registered Education Savings Plans (RESPs) let you save money for your kids with a little bonus from the government.
What is a Redemption Price?
Redemption Price is the price that a company buys back its own stock at.
What is a Red Herring Prospectus?
Red Herring Prospectuses have less info than official prospectuses. They are just to see who is interested in the company.
What is Real GDP?
Real GDP is how much cash a country made, taking into account the change in price due to inflation.
What is a REIT?
Real Estate Investment Trust (REIT) is a bunch of property owned by a company and sold by units like a mutual fund.
What is Rational Expectations Theory?
Rational Expectations Theory says people use common sense to make choices and the prices of stuff reflects that.
What are Quotation and Reporting Systems?
Quotation and Trade Reporting Systems (QTRS) are official places to report trades.
What is a Quotation or Quote?
Quotation or Quote is what price a stock is being bought and sold for.
What are Quick Ratios?
Quick Ratios are what the company owns, not including inventory, divided by what it owes.
What is Quantitative Analysis?
Quantitative Analysis is the study of the history of companies and markets to figure out where to invest.
What are Put Options?
Put Options are contracts that give you the right to buy money things if they hit a set price by a certain time.
What are Purchase Funds?
Purchase Fund are pools of cash a company sets aside to buy back money things it has sold.
What is the Prudent Man Rule?
Prudent Man Rule is a little guideline to follow for some managers of money things. What you do is ask yourself, would a pretty level headed dude buy this?
What are Protected Funds?
Protected Funds are like segregated funds except for they're mutual funds.
What are Profitability Ratios?
Profitability Ratios show how well a company's bosses have run things.
What are Private Family Offices?
Private Family Offices are places where money pros handle clients' cash.
What are Principal Protected Notes?
Principal Protected Notes guarantee that you'll get back at least what you paid for it, and maybe even some interest too.
What is Principal?
Principal is either a main person in a deal or the amount of cash you paid for a money thing.
What are Primary Markets?
Primary Markets are places like the Toronto Stock Exchange where money things are sold.
Sunday, August 8, 2010
What are Price/Earnings Ratios?
Price-Earnings (P/E) Ratios show how much money you'll make on an investment considering how much you paid for it.
What are Prepaid Expenses?
Prepaid Expenses are things like rent and insurance, stuff paid for now to use later.
What is a Preliminary Prospectus?
Preliminary Prospectus is a memo with info about new stocks being put on the market.
What are Preferred Shares?
Preferred Shares give holders the right to dividends before common shareholders but they can't vote usually.
What are Preferred Dividend Coverage Ratios?
Preferred Dividend Coverage Ratios show how much cash a company has to give to preferred shareholders as dividends.
What are Preemptive Rights Clauses?
Preemptive Rights Clauses say that shareholders get to vote on whether or not to sell more stock.
What is Pooling of Interest?
Pooling of Interest is when a company includes the comings and goings of a company it owns as part of its financial records.
What is Political Risk?
Political Risk is the danger that you'll lose money because a government does something.
What are Policy-Based Guarantees?
Policy-Based Guarantees pay out cash based on certain restrictions.
What is Personal Disposable Income?
Personal Disposable Income is how much cash someone has after they've spent all they have to.
What is a Payback Period?
Payback Period is how long it takes for it to be worth the switch from a convertible money thing to another money thing.
What is OBSI?
Ombudsman for Banking Services and Investments (OBSI) are people who investigate claims against money companies.
What are Non-Trading Employees?
Non-Trading Employees work for money thing companies but don't trade.
What is Non-Cumulative?
Non-Cumulative means that if a dividend is not paid out, it won't add up and be paid out later. Its just gone.
What is Nominal GDP?
Nominal GDP is how much cash a country made based on what stuff costs that year.
What is a NAAF?
New Account Application Form (NAAF) is filled out by an investment advisor and a new client to learn their goals.
What is the Natural Unemployment Rate?
Natural Unemployment Rate is how many able people should be out of work if things are going good in the economy.
What is NRD?
National Registration Database (NRD) is a website where money thing people can get registered. N
What is DNCL?
National Do Not Call List (DNCL) is made up of people that it is illegal for telemarketers to call.
What are National Policies?
National Policies are rules everyone in the country has to follow when it comes to money things.
What is NASDAQ?
National Association of Securities Dealers Automated Quotation System (NASDAQ) shows what trades are going on outside of normal markets.
Saturday, August 7, 2010
What is the MFDA?
Mutual Fund Dealers Association (MFDA) are the guys who make up the rules for mutual funds.
What are Multi-Disciplinary Accounts?
Multi-Disciplinary Accounts are managed using a bunch of different tactics and styles.
What is a Moving Average?
Moving Average is found by adding up how much a money thing was worth when the market closed each day for a certain number of days.
What is a Money Purchase Plan?
Money Purchase Plan (MPP) is a pension plan that pays out cash based on how much was put in and how well it was invested.
What are Money Markets?
Money Markets are places where very liquid money things are bought and sold.
What is Monetary Policy?
Monetary Policy is what a government does with the amount of cash in the economy in order to make things stable.
What are Money Aggregates?
Monetary Aggregates show how much and how liquid is the cash and money things a country and its people and companies have.
What are Monetarists?
Monetarists think that the amount of cash in the economy affects how much stuff can be made and at what price.
What is Maturity?
Maturity is when the cash used to buy a money thing like a bond is paid back to the person who bought it.
What is a Material Change?
Material Change is when something happens in a company that will change the value of its money things.
What is a Married Put or a Put Hedge?
Married Put or a Put Hedge is when you buy a money thing and an option to sell it at the same time.
What is Marking-to-Market?
Marking-to-Market is what happens in the futures market when people who make cash collect from those who lose it.
What is Market Risk?
Market Risk is stuff that happens that no one can stop that affects the price of money things.
What are Market Makers?
Market Makers are traders who work for money thing companies by buying and selling money things.
What is Market Correction?
Market Correction is when a money thing's price goes up or down quickly because it has been bought too many times.
What is Market Capitalization?
Market Capitalization is how much a company is worth based on the price of its shares.
What is a Margin Call?
Margin Call is sent out by companies that lend money to buy money things when someone who has a margin account needs to send them more cash because their investments are doing bad.
What is a Margin Agreement?
Margin Agreement is the contract someone signs when they open an account for buying money things with credit.
What is Margin?
Margin is how much someone pays in cash when they buy a money thing with a combo of cash and credit.
What is MER?
Management Expense Ratio (MER) is what the company that runs a mutual fund charges people who buy it.
What are Managed Products?
Managed Products are things like hedge funds and mutual funds that are pools of cash and money things run by pros.
What is a Managed Account?
Managed Account is a stack of money things run by a pro for a normal person like you or me.
What is Macroeconomics?
Macroeconomics looks at the whole economy, how much money it's making, how many people are out of work, that sort of thing.
What is a Load?
Load is how much of your money when you buy a mutual fund goes to paying the people who run the fund.
What are Listing Agreements?
Listing Agreements are sent out when a company goes up on a stock exchange. It says basic info about the company.
What is Liquidity Risk?
Liquidity Risk is the danger that you won't be able to get rid of a money thing if you want to.
What are Liquidity Ratios?
Liquidity Ratios show how well a company can pay off their debts if asked to.
What is Liquidity Preference Theory?
Liquidity Preference Theory says that people want to make the most money in the least amount of time and with the least risk.
What is Liquidity?
Liquidity is how easy it is to buy or sell a money thing. Cash is crazy liquid, options less so.
What is a Limited Partnership?
Limited Partnership is when someone invests in a company and is responsible for that investment, but doen't take part in the day to day of the business.
What is Limited Liability?
Limited Liability means that shareholders of a company are only responsible for the cash they invested
What is a Limit Order?
Limit Order means a trader should buy or sell money things for a client if they reach a certain price.
Wednesday, August 4, 2010
What is the Life Cycle?
Life Cycle refers to how people's desires and investment goals change with age.
What are Liability Traders?
Liability Traders make deals for a trading company on behalf of the company, not clients.
What are Liabilities?
Liabilities are things on a balance sheet that a company has to pay for that year.
What is Leverage?
Leverage is cash taken out of earnings because a company has to pay things like interest and dividends. It can also mean borrowing money to make money.
What are LEAPS?
Long Term Equity Anticipation Securities (LEAPS) are option contracts for the long term, maybe 2 to 3 years.
What is the Large Value Transfer System?
Large Value Transfer System (LVTS) is used to shift cash between banks.
What are LSVCCs?
Labour Sponsored Venture Capital Corporations (LSVCC) LSVCCs are money things funded by labour groups that want to invest in smallish businesses. They get big tax credits too.
What is an Investment Policy Statement?
Investment Policy Statement is a contract saying what the manager of a portfolio can do with their clients' money.
What is IIROC?
Investment Industry Regulatory Organization of Canada (IIROC) is a group that sets the rules for money things.
What is the IIAC?
Investment Industry Association of Canada (IIAC) is a group that looks out for money people.
What are Investment Counsellors?
Investment Counsellors are people paid to tell you what to do with your money.
What is the Know Your Client Rule?
Know Your Client Rule (KYC) is a rule in money circles that a person should know their client before telling them to do anything.
What is Keynesian Economics?
Keynesian Economics is the idea that governments should interfere when markets get messed up.
What is a Junior Bond Issue?
Junior Bond Issues are money things without any collateral to back them up.
What is Jitney?
Jitney is when a broker from one company wants to do some trading so they get a broker from another company to do it.
What is an Issuer Bid?
Issuer Bid is when someone who made and sold stock tries to buy it back from the people who bought it.
What are Investment Advisors?
Investment Advisors (IA) are professionals who help people make investment decisions.
What is an Inventory Turnover Ratio?
Inventory Turnover Ratio is how much it cost to make the products in the inventory divided by how many products their are.
What does In-the-Money mean?
In-the-Money options will make money if they are used to buy or sell whatever money thing they are for.
What is the IMF?
International Monetary Fund (IMF) is a group that oversees international economic policies.
What is Interest Rate Risk?
Interest Rate Risk is the danger that changing interest rates will make you lose money.
What are Interest Coverage Ratios?
Interest Coverage Ratios show how many times over a companies debt can be paid off by its profits.
What is Integrated Asset Allocation?
Integrated Asset Allocation is a plan to buy money things that takes into account what the market will do and what the client wants.
What are Intangible Assets?
Intangible Assets are things to a companies credit yet that can't be held, like respect, patents, franchises.
What is Insured Asset Allocation?
Insured Asset Allocation is a plan to not let a portfolio of money things drop to below a certain value.
What are Institutional Clients?
Institutional Clients are legally responsible for the money things of a group, like funds.
What are Instalment Receipts?
Instalment Receipts are a way to pay for stocks bit by bit instead of all at once.
What are Installment Debentures?
Instalment Debentures are money things that pay a little bit of the original cost back each year.
What are Insider Reports?
Insider Reports contain info about what insiders bought and sold which money things.
What are Insiders?
Insiders of companies are executives, owners, and employees with a lot of info about the company.
What are Initial Sales Charges?
Initial Sales Charges are paid to financial advisers when they sell a policy.
What is an Information Circular?
Information Circular is info given to shareholders who send proxies.
What is Inflation Rate Risk?
Inflation Rate Risk is the danger that money things may be worth less because things are getting more expensive.
What is Indexing?
Indexing is when a fund manager buys money things in the same proportion that they exist on a particular index.
What are Index-Linked GICs?
Index-Linked GICs are money things that give you a guaranteed increase in cash at the end of a set time, plus maybe even more because their value goes up if the indexes they are linked to goes up.
What are Indexes?
Indexes are lists of a bunch of stocks from the same market, allowing people to see how much the index goes up and thus know what the market is doing.
Tuesday, August 3, 2010
What are Income Trusts?
Income Trusts are funds that buy money things from other companies, make money, and give the money to people who own units if the fund.
What is Income Splitting?
Income Splitting is when 1 person in a married couple makes more money but gives some to the 1 who makes less money in order to pay less tax.
What are Income Bonds?
Income Bonds pay back the initial money but only only pay interest if the company that sold them makes money.
What is ICE Futures Canada?
ICE Futures Canada (formerly the Winnipeg Commodity Exchange) is a market where agricultural futures are sold.
What is Hypothecating?
Hypothecating is when you use money things as collateral when you get a loan.
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