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To find your definition simply click on the letter that your investment or financial term starts with.
[/vc_column_text][vc_tta_tabs style=”flat” shape=”square” color=”white” spacing=”” alignment=”center” active_section=”1″ no_fill_content_area=”true” el_class=”custom-tabs”][vc_tta_section title=”A” tab_id=”1584111496773-40463142-b252″][vc_toggle title=”Account Statement”]An online or paper record of transactions in an account at a financial institution or investment firm, generally provided monthly.[/vc_toggle][vc_toggle title=”Accredited Investor”]A government, financial institution, large company or individual with a required level of income or assets, permitted to invest in certain types of securities sold without a prospectus.[/vc_toggle][vc_toggle title=”Advisors/ Advisers”]Advisors/advisers specialize in giving advice to clients about investing in securities and are registered with the securities regulators.[/vc_toggle][vc_toggle title=”Affinity Fraud”]A type of investment fraud that exploits the trust and friendship that exists in groups of people who have something in common, such as religious or ethnic communities, social clubs or professional groups. The fraudsters who promote affinity scams frequently are – or pretend to be – members of the group. They often enlist respected leaders (who may be unsuspecting victims) from within the group to spread the word about the scheme, by convincing them that a fraudulent investment is legitimate and worthwhile. The resulting sense of affinity and trust allows fraudsters to more effectively lure their victims into a fraudulent investment.[/vc_toggle][vc_toggle title=”Altcoin”]Refers to any crypto asset other than Bitcoin.[/vc_toggle][vc_toggle title=”Annual Information Form (AIF)”]An AIF is required to be filed annually by certain companies under Part 6 of National Instrument 51-102. It is intended to provide material information about a company and its business at a point in time in the context of its historical and possible future development. An AIF describes the company, its operations and prospects, risks and other external factors that impact the company specifically.[/vc_toggle][vc_toggle title=”Annual Report”]A comprehensive report issued to shareholders that provides information about a company’s activities and financial condition.[/vc_toggle][vc_toggle title=”Annuity”]A financial instrument that provides a series of payments at regular intervals for a specified period of time.[/vc_toggle][vc_toggle title=”Appreciation”]How much your money, investments, or other assets go up in value as time passes.[/vc_toggle][vc_toggle title=”Ask Price”]The lowest price a seller is willing to accept for a security.[/vc_toggle][vc_toggle title=”Asset mix”]The allocation of assets within a fund or your portfolio that is invested in the three major asset classes: cash and equivalents, fixed income, and equity.[/vc_toggle][vc_toggle title=”Asset-backed commercial paper”]Short-term debt typically issued by banks and financial institutions. This is a kind of commercial paper that is backed by a pool of assets, such as credit card receivables, car loans, or mortgages.[/vc_toggle][vc_toggle title=”Assets”]Assets are everything you own that has any monetary value, plus any money you are owed.[/vc_toggle][/vc_tta_section][vc_tta_section title=”B” tab_id=”1584111496790-9ce37a97-ec6f”][vc_toggle title=”Back-end load”]A type of fee that investors pay when they sell mutual fund shares. The fee is a percentage of the value of the share being sold.[/vc_toggle][vc_toggle title=”Balance Sheet”]A financial statement that shows a company’s financial condition at a specific point in time. It summarizes a company’s assets, liabilities, and shareholders’ equity.[/vc_toggle][vc_toggle title=”Balanced Portfolio”]An investment portfolio that holds an appropriate mix of different types of investments, such as bonds and shares.[/vc_toggle][vc_toggle title=”Bear Market”]A period when the value of the securities market, or a sector of the securities market, is generally declining. It is a transition from high investor optimism to widespread investor fear and pessimism. A bear market should not be confused with a correction, which is a short-term trend that has a duration of less than two months.[/vc_toggle][vc_toggle title=”Benchmark”]A market or sector index against which you can measure the performance of an investment (such as a mutual fund).[/vc_toggle][vc_toggle title=”Beneficiary”]A beneficiary is the person or organization who receives assets that are held in your name in a retirement plan, or are paid on your behalf by an insurance company after your death.[/vc_toggle][vc_toggle title=”Beneficial Owner”]The individual who has the benefits of owning a security even though the title may be registered in another name.[/vc_toggle][vc_toggle title=”Better Business Bureau”]An organization dedicated to fostering fair and honest relationships between businesses and customers, instilling consumer confidence, and contributing to an ethical business environment.[/vc_toggle][vc_toggle title=”Bid Price”]The highest price a buyer is willing to pay for a security.[/vc_toggle][vc_toggle title=”Binary Options Scam”]Binary options are like bets on how an asset (currency, stock, etc.) will perform in a limited amount of time – they are “all or nothing” wagers, similar to gambling. Even when investors see virtual gains, they often cannot access these profits as they don’t exist. Typically luring victims through enticing online ads, emails or social media, binary options trading platforms promote higher than average returns for a small amount of work. Investors are required to create a trading account, supply their credit card and other personal information, and make an initial deposit before they start trading.[/vc_toggle][vc_toggle title=”Bitcoin”]Is the most popular type of crypto asset. Bitcoin uses distributed ledger technology called blockchain to operate independently of a central bank and is commonly used a medium of exchange.[/vc_toggle][vc_toggle title=”Blockchain”]An online infrastructure that permits and records the transactions of crypto assets for all participants securely using cryptography, hence the term “crypto”. As a transaction of crypto assets takes place on the blockchain, a peer-to-peer network confirms and validates the transaction and adds it to growing list of records called blocks.[/vc_toggle][vc_toggle title=”Blockchain explorer”]A browser in Blockchain that allows you to see all the transactions on a Blockchain network.[/vc_toggle][vc_toggle title=”Blockchain funds”]Funds that invest in companies that have operations related to Blockchain. Blockchain funds allow access of the technology behind crypto assets without directly buying, owning or trading crypto.[/vc_toggle][vc_toggle title=”Boiler room”]A scheme or fraud where salespeople use high pressure techniques, often by telephone, to push investment opportunities to generally unsophisticated investors.[/vc_toggle][vc_toggle title=”Bond”]Bonds are debt securities issued by corporations and government.[/vc_toggle][vc_toggle title=”Bond ladder”]A strategy for fixed income products that attempts to minimize risk by dividing up investment dollars evenly among bonds that mature at different times.[/vc_toggle][vc_toggle title=”Budget”]A budget is a written record of income and expenses during a specific time frame, typically a year.[/vc_toggle][vc_toggle title=”Bull Market”]A period when the value of the securities market, or a sector of the securities market, is generally rising.[/vc_toggle][/vc_tta_section][vc_tta_section title=”C” tab_id=”1584111691532-e313e82e-73ae”][vc_toggle title=”Call Option”]A type of option that gives the holder the right to buy a specified security asset at a specified price within a specified time[/vc_toggle][vc_toggle title=”Callable”]A term that applies to bonds and preferred shares where the company may require you to sell back the bonds or shares by a certain date for a specified price. Also known as redeemable.[/vc_toggle][vc_toggle title=”Canada Deposit Insurance Corporation”]A federal government organization that provides insurance to protect eligible money deposited in Canadian banks and certain other financial institutions up to a certain amount. See more at CDIC.[/vc_toggle][vc_toggle title=”Canada Education Savings Grant”]Employment and Social Development Canada (ESDC) provides an incentive for families to save for their child’s post-secondary education by paying a grant based on the amount contributed to an RESP for the child. The grant will be directly deposited into the child’s RESP.[/vc_toggle][vc_toggle title=”Canada Revenue Agency”]The federal government agency that collects taxes and administers Canada’s tax laws. See more at CRA.[/vc_toggle][vc_toggle title=”Canada Savings Bond”]Financial product offered by the Bank of Canada with a guaranteed minimum amount of interest.[/vc_toggle][vc_toggle title=”Canadian Premium Bonds”]A low-risk investment from the Bank of Canada. It offers a higher interest rate than a Canada Savings Bond. You can only redeem CPBs once a year on or within 30 days of the anniversary date each year.[/vc_toggle][vc_toggle title=”Canadian Securities Administrators”]A council of the securities regulators of Canada’s 13 provinces and territories. See more at CSA.[/vc_toggle][vc_toggle title=”Canadian Securities Exchange”]A stock exchange for trading the equity securities of emerging companies. Formerly known as Canadian National Stock Exchange and CNQ, Canadian Trading and Quotation System Inc. See more at CSE.[/vc_toggle][vc_toggle title=”Capital”]Money that is used to generate income or make an investment.[/vc_toggle][vc_toggle title=”Capital Gain”]An increase in the money value of a capital asset such as an investment or other asset, which results in a profit if the asset is sold. For example, if a share is bought at $26 and sold at $30, there is a capital gain of $4.[/vc_toggle][vc_toggle title=”Cash Account”]A trading account where you pay cash for all transactions.[/vc_toggle][vc_toggle title=”Cash equivalent”]An investment that can be quickly converted to cash with little risk, such as a treasury bill.[/vc_toggle][vc_toggle title=”Cash requirements”]The extent to which you depend on your investments to meet day-to-day expenses. Investors who rely on their investments to meet daily living expenses will be much less comfortable with the risk of losses.[/vc_toggle][vc_toggle title=”Cease Trade Order”]An order issued by a provincial or territorial securities commission or similar regulatory body against a company, management of a company, or any individual for a breach or an alleged breach of the Securities Act. Most CTOs are issued as a result of a filing deficiency, such as the failure to file a proper quarterly or annual financial statement, but may also be issued as a result of an enforcement action that involves a proven or admitted breach of the Securities Act.[/vc_toggle][vc_toggle title=”Centralized Finance (CeFi)”]Abbreviated as CeFi, it refers to centralized finance, which includes the traditional financial system as well as centralized crypto asset trading platforms.[/vc_toggle][vc_toggle title=”Certificate of deposit”]A debt instrument that pays a fixed rate of interest at a certain point in time. Funds must be kept on deposit for a fixed period of time[/vc_toggle][vc_toggle title=”Canadian Investment Regulatory Organization (CIRO)”]CIRO regulates mutual fund dealers, investment dealers, and acts as the regulation services provider for marketplaces that have retained it as such, including monitoring trading on those marketplaces for compliance with CIRO rules and securities legislation. CIRO, which had temporarily been known as the New Self-Regulatory Organization of Canada, consolidated the functions of the Investment Industry Regulatory Organization of Canada and the Mutual Fund Dealers Association of Canada.[/vc_toggle][vc_toggle title=”Clearing house”]An organization that settles trades and regulates the delivery of securities transactions.[/vc_toggle][vc_toggle title=”Client Relationship Model 2″]Securities law requirements that provide investors with information from their registered investment advisors on the costs and performance of their investments, as well as other information related to their accounts.[/vc_toggle][vc_toggle title=”Closed end investment fund”]A fund that issues a finite number of units or shares, which may trade on a stock exchange.[/vc_toggle][vc_toggle title=”Cold Wallet”]Are wallets that are not connected to the internet and offer fewer opportunities for potential hacking of a user’s address and private key. Similar to a USB drive, cold wallets allow users to view their portfolio without connecting to the internet and putting their private key at risk and connecting to the internet only at the time of trading.[/vc_toggle][vc_toggle title=”Commercial paper”]A form of loan you make to a corporation. You buy the investment at a discount and you get the full value back on the maturity date. The time period is less than one year[/vc_toggle][vc_toggle title=”Commission”]A fee you pay to your investment dealer or advisor for their services, such as providing investment advice and conducting transactions.[/vc_toggle][vc_toggle title=”Commodity”]A basic good that is used in commerce that is interchangeable with another similar product. Commodity prices are subject to supply and demand. Examples include grain and oil.[/vc_toggle][vc_toggle title=”Commodity pool”]A fund that invests in derivatives or commodities that conventional mutual funds are not permitted to invest in.[/vc_toggle][vc_toggle title=”Common Share”]A share in the ownership of a company, giving the holder a vote in the election of directors and some other major corporate decisions.[/vc_toggle][vc_toggle title=”Compound Interest”]Money that you earn on interest from a previous period. For example, if you invest $100 at an annual interest rate of 5%, it will grow by $5 to $105 after one year. In the next year, at 5%, it will grow to $110.25. The extra 25 cents is interest earned on the previous interest. It might not seem like much, but the compounding increases each year and becomes quite significant over time.[/vc_toggle][vc_toggle title=”Contingency fund”]A fund that exists to provide certain protections if a dealer becomes insolvent either because of business failure or fraud that leads to insolvency. Examples include the Canadian Investor Protection Fund (CIPF) for investment dealers and the MFDA’s Investor Protection Corporation (IPC) for mutual fund dealers.[/vc_toggle][vc_toggle title=”Continuous Disclosure”]The legally required public disclosure by issuers of their financial statements and new releases.[/vc_toggle][vc_toggle title=”Contracts-For-Difference”]Contracts-For-Difference, commonly called CFDs, are contracts between buyers and sellers stipulating that sellers will pay an amount based on future value of an underlying thing when the contract is due. The underlying things typically include assets, such as securities or commodities, or benchmarks, such as currency exchange rates or securities indices. CFDs are financial derivatives considered to be securities and specified derivatives under AB securities legislation[/vc_toggle][vc_toggle title=”Control Person”]Significant shareholders, acting alone or with others, that are in a position to influence the actions of a company.[/vc_toggle][vc_toggle title=”Counterparty”]A party to a contract, generally the entity or person(s) with whom you negotiate an agreement (with the other party to a transaction).[/vc_toggle][vc_toggle title=”Coupon Rate”]The interest rate stated on a bond, note, or other fixed income security when it is first sold.[/vc_toggle][vc_toggle title=”Credit Union Deposit Insurance Corporation”]A government organization that provides insurance to protect money deposited in AB credit unions. See more at CUDIC[/vc_toggle][vc_toggle title=”Crowdfunding”]A web-based process that gives businesses a way to collect small amounts of money from a large number of people.[/vc_toggle][vc_toggle title=”Crypto Asset”]A term that encompasses all digital assets that use cryptography, a peer-to-peer network and a digital ledger system to record transactions.[/vc_toggle][vc_toggle title=”Crypto Asset Trading Platform”]An online trading service that allows the trading of crypto assets.[/vc_toggle][vc_toggle title=”Cryptocurrency”]Cryptocurrencies is a popular name for speaking to digital assets. As cryptocurrencies can be used for a variety of functions outside of just being a medium of exchange and are not considered legal tender in Canada and not regulated as a traditional currency the more appropriate name is crypto assets.
Learn more about cryptocurrencies. [/vc_toggle][vc_toggle title=”Crypto Custodian”]Provides a storage of digital assets in exchange for a fee. These assets could be stored online (hot storage) or offline (cold storage) and could support a multi-approval approach.[/vc_toggle][vc_toggle title=”Crypto Wallet”]An app or device where one’s cryptocurrency transactions are stored. Cryptocurrency wallets allow users to send and receive cryptocurrency, by providing an internet address to which tokens can be sent.[/vc_toggle][vc_toggle title=”Crypto Exchange Traded Funds (ETFs)”]A type of exchange traded fund that tracks crypto assets instead of stocks or bonds that are held by a regular ETF. This provides exposure to crypto assets without directly buying, owning or trading them.[/vc_toggle][vc_toggle title=”Cumulative collection or successive additions”]Accumulation of unpaid dividends to be repaid if a company makes money.[/vc_toggle][/vc_tta_section][vc_tta_section title=”D” tab_id=”1584111692336-8f8ec799-de4f”][vc_toggle title=”Dealers”]People, or investment firms, registered to buy or sell securities on behalf of clients and give advice to clients about the purchase or sale of securities.[/vc_toggle][vc_toggle title=”Debenture”]Similar to a bond, a company promises to repay money borrowed from investors at a specified time and to pay interest at a specified rate. A debenture is secured only against the general credit of the borrower.[/vc_toggle][vc_toggle title=”Debt”]The money that you owe to a lender (for example a bank) when you borrow money.[/vc_toggle][vc_toggle title=”Decentralized Finance (DeFi)”]A term that encompasses peer-to-peer financial services on blockchains.[/vc_toggle][vc_toggle title=”Decision”]A direction, decision, order or ruling or requirement made under a power or right given by the Securities Act or the regulations.[/vc_toggle][vc_toggle title=”Deferred sales charge”]A type of back-end load that investors pay if they sell shares of a mutual fund within a specified period of time, usually the first 6 or 7 years.[/vc_toggle][vc_toggle title=”Defined benefit pension plan”]A pension plan whereby an employer pays a predetermined and ongoing amount when an employee retires. The amount is based on earnings and the number of years worked.[/vc_toggle][vc_toggle title=”Defined contribution pension plan”]A pension plan with an individual account for each participant. The amount of the benefit is based on how much you make each year and how much your company contributes. The retirement income depends on the plan’s investment income and the amount contributed to the plan.[/vc_toggle][vc_toggle title=”Deposit insurance”]An insurance plan designed to protect the money you deposit if a bank, credit union, or trust company fails. See also CDIC and CUDIC.[/vc_toggle][vc_toggle title=”Derivative”]A financial contract that gives you the right to buy and sell at specified prices. Examples include call and put options.[/vc_toggle][vc_toggle title=”Digital Coins”]Another name for crypto assets[/vc_toggle][vc_toggle title=”Distributed Ledger”]A digital system where records of transactions are simultaneously maintained at multiple points through a network of peer-to-peer computers. Blockchain is a form of a distributed ledger.[/vc_toggle][vc_toggle title=”Digital Token”]Another name for crypto assets[/vc_toggle][vc_toggle title=”Disciplinary action”]Action taken by a securities regulator to discipline an individual, company, or registrant. This can include a fine or a ban from the securities market[/vc_toggle][vc_toggle title=”Discount Broker”]A stockbroker that charges lower fees compared to full service brokers. No investment advice is given.[/vc_toggle][vc_toggle title=”Discount Brokerage firm”]Brokerage firms that provide no investment advice, and charge a lower fee to buy and sell securities.[/vc_toggle][vc_toggle title=”Discretionary Trade”]When you give someone else authority to make investment decisions and trade securities for you without checking with you prior to each trade[/vc_toggle][vc_toggle title=”Diversification”]The investment in a number of different securities. This reduces the risks inherent in investing. Diversification may be among types of securities, companies, industries or geographic locations.[/vc_toggle][vc_toggle title=”Diversify”]Reducing risk by investing in a number of assets.[/vc_toggle][vc_toggle title=”Dividend”]A payment made by a company to its shareholders from the company’s profits. For common shares, the dividend can vary with the financial success of the company. Dividends can generally be raised, lowered or discontinued at the discretion of the company’s board of directors.[/vc_toggle][vc_toggle title=”Dividend Reinvestment Plan”]The automatic reinvestment of shareholder dividends in more shares of the company’s stock.[/vc_toggle][vc_toggle title=”Dividend yield”]A financial ratio that shows how much a company pays out in dividends relative to the current share price.[/vc_toggle][vc_toggle title=”Dollar Cost Averaging”]A strategy that requires investing money at regular intervals regardless of market conditions. Designed to reduce price volatility.[/vc_toggle][vc_toggle title=”Dow Jones Industrial Average”]A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. The Dow is a barometer of how shares of the largest US companies are performing.[/vc_toggle][/vc_tta_section][vc_tta_section title=”E” tab_id=”1584111693052-0fd34393-16fa”][vc_toggle title=”Early warning report”]A report that must be filed when a person or group of people acquire 10% of a company’s securities.[/vc_toggle][vc_toggle title=”Earnings Per Share”]The amount of profit earned by a company during a period per share of common stock. It is calculated by dividing net income by the total number of shares outstanding during the period.[/vc_toggle][vc_toggle title=”EBITDA”]Earnings before interest, taxes, depreciation and amortization. EBITDA is one way to analyze and compare profitability among companies.[/vc_toggle][vc_toggle title=”Emotional requirements”]Your emotional response to risk and to changes in the value of your investments. Some people are quite comfortable with the ups and downs of the market, while others lose sleep when their investments fluctuate in value.[/vc_toggle][vc_toggle title=”Educational Assistance Payment”]Payments from a group scholarship plan that a child receives when attending a post secondary institution.[/vc_toggle][vc_toggle title=”Equity”]The ownership interest of the shareholders (common and preferred) of a company. Shares of a company can be referred to as equities.[/vc_toggle][vc_toggle title=”Equity investments”]Ownership shares in a company. Also known as shares and stocks[/vc_toggle][vc_toggle title=”Escrow”]Securities deposited with a neutral third party and held in trust that are delivered when certain conditions are fulfilled.[/vc_toggle][vc_toggle title=”Exchange-Traded Fund (ETF)”]A fund that holds the same mix of investments as a stock or bond market index and trades on a stock exchange.[/vc_toggle][vc_toggle title=”Exempt Market”]A market where private companies sell their securities under various exemptions from the prospectus requirement to investors that meet specific criteria in National Instrument 45-106 Prospectus and Registration Exemptions.
Learn more about exempt markets. [/vc_toggle][vc_toggle title=”Exemption”]The Securities Act and Rules provide a number of exemptions from the registration and prospectus requirements. If you purchase securities using these exemptions, the securities are subject to resale restrictions.[/vc_toggle][vc_toggle title=”Expected Return”]The overall profit you expect to receive from an investment in the future which may be very different from the actual returns that you eventually receive.[/vc_toggle][/vc_tta_section][vc_tta_section title=”F” tab_id=”1584111693648-aac7be6f-d8a3″][vc_toggle title=”Face Value” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]The value printed on the face of currency or other financial instruments, like bonds or debentures. The amount that a lender will receive when a bond or debenture is repaid, exclusive of interest. See also maturity date.[/vc_toggle][vc_toggle title=”Fiat Currency” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]Fiat money is government-issued currency that is not backed by a physical commodity, such as gold or silver.[/vc_toggle][vc_toggle title=”Financial Adviser” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A person who offers advice about buying or selling investments.[/vc_toggle][vc_toggle title=”Financial Consumer Agency of Canada” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]Canadian agency that protects and educates consumers about financial services.[/vc_toggle][vc_toggle title=”Financial Industry Regulatory Authority” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]The largest independent regulator for all US securities firms. See more at FINRA.[/vc_toggle][vc_toggle title=”Financial Institution” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A bank, trust company, credit union, or other institution that offers financial services such as savings and chequing accounts, loans, and credit cards.[/vc_toggle][vc_toggle title=”Financial Plan” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A written plan that helps investors identify their short and long-term financial goals and determine how to best manage their money to achieve them.[/vc_toggle][vc_toggle title=”Financial Planner” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A person who determines how individuals can meet their goals through proper management of their financial resources. They offer financial services such as budgeting, cash and debt management, retirement and tax planning. Financial planners cannot trade securities or recommend investments to their clients unless they are registered with the provincial securities regulator in their province.[/vc_toggle][vc_toggle title=”Financial Statements” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A formal record of a company’s financial activities for a period of time, usually including a statement of financial position or balance sheet, statement of comprehensive income or income statement, cash flows or a cash flow statement, and notes.[/vc_toggle][vc_toggle title=”Fixed income investments” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]Investments that pay you predetermined interest or dividend income such as government and corporate bonds and debentures.[/vc_toggle][vc_toggle title=”Fixed Income Securities” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]Investments that pay a pre-determined rate of interest or dividend income such as government and corporate bonds, debentures and preferred shares.[/vc_toggle][vc_toggle title=”Flow-through share” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A special type of common share issued by oil and gas or mineral exploration companies that allows certain tax deductions.[/vc_toggle][vc_toggle title=”Foreign Exchange (FOREX) Trading” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]Investing in different currencies to make money on the changes in exchange rates. Also known as FX trading.[/vc_toggle][vc_toggle title=”Forex Scam” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]Also referred to as FX or foreign exchange, Forex is essentially the trading of foreign currencies. Victims of Forex scams are often solicited through online or newspaper ads describing Forex trading as a quick and easy way to make large profits, when in reality it’s a complicated process requiring professional training and experience using very advanced software. The scams typically guarantee little or no risk and high returns and are often offered by unregistered dealers based outside of Canada.[/vc_toggle][vc_toggle title=”Forward” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A contract where the seller agrees to deliver to the buyer an agreed amount of an asset at a specified price on a specified future date. Forwards are traded in the over-the-counter market.[/vc_toggle][vc_toggle title=”Front-end load” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A type of fee that investors pay when a mutual fund is initially purchased. Front-end loads decrease the size of the investment because they are deducted from the initial investment amount.[/vc_toggle][vc_toggle title=”Full service investment firm” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A firm that provides a full range of investment products and services for a variety of fee types, including investment advice.[/vc_toggle][vc_toggle title=”FUD” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]Stands for fear, uncertainty and doubt. When investors lose faith and begin to sell-off their cryptocurrency especially for fiat currency.[/vc_toggle][vc_toggle title=”Fund Facts” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A document that fund managers are required to provide for each mutual fund that they create. Each Fund Facts is in plain language, no more than two pages double-sided and highlights key information for investors, including past performance, risks and the costs of investing in the mutual fund. Dealers must provide Fund Facts to their clients before the client invests in the fund.[/vc_toggle][vc_toggle title=”Fund Manager” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A company that oversees securities. The fund manager oversees the operation of investment funds, including deciding which securities to purchase, and in what quantities, and when to buy and sell the securities. These decisions are based on the stated objective and strategy of the fund. An investment fund offers investors a wider selection of investment opportunities, management expertise and lower investment fees than investors could access on their own.[/vc_toggle][vc_toggle title=”Future” custom_font_container=”tag:h3|text_align:left” custom_use_theme_fonts=”yes” use_custom_heading=”true”]A derivative product whereby the seller agrees to deliver to the buyer an agreed amount of an asset at a specified price on a future date. Futures are traded on an exchange.[/vc_toggle][/vc_tta_section][vc_tta_section title=”G” tab_id=”1584111694258-f6f0f965-5667″][vc_toggle title=”Governance Token”]The first cryptocurrencies to represent voting on a blockchain by distributing the power of making major platform decisions from a centralized structure to an entire community[/vc_toggle][vc_toggle title=”Guaranteed investment certificate”]Deposit certificate issued by a financial institution.[/vc_toggle][vc_toggle title=”Guaranteed minimum withdrawal benefit”]Guaranteed fixed income that certain segregated funds will pay out of your investment.[/vc_toggle][/vc_tta_section][vc_tta_section title=”H” tab_id=”1584111694888-03c86fe7-d577″][vc_toggle title=”Hedge”]An investment made to reduce the risk of adverse price movements of another asset.[/vc_toggle][vc_toggle title=”Hedge Funds”]An investment pool that uses advanced investment strategies that are not generally permitted for traditional mutual funds, such as the use of derivatives.[/vc_toggle][vc_toggle title=”Hedging”]An investment strategy that uses one investment to offset the risk of another investment. While hedging in investing is generally considered an advanced strategy, a more relatable example of (non-investment) hedging is insurance. When you take out insurance to reduce the risk that an injury will reduce your income because of an inability to work, this is a hedge.[/vc_toggle][vc_toggle title=”High Yield investment program”]An investment that promises high rates of return but is a scam. It is a type of Ponzi scheme where returns are paid with money invested by new investors.[/vc_toggle][vc_toggle title=”Hot Wallet”]Also known as online wallets, hot wallets run on connected devices like computers, mobile phones, and tablets through the internet. Maintaining crypto assets in a hot wallet allows them to be conveniently traded, but increases the risk that the device can be hacked and the crypto-assets stolen.[/vc_toggle][vc_toggle title=”HODL”]Stands for “hold on for dear life”. Commonly used in forums to signify that owners of a certain cryptocurrency are going to hold on to it despite a potential (or immediate) collapse in value.[/vc_toggle][/vc_tta_section][vc_tta_section title=”I” tab_id=”1584111695496-6e4ea6fb-6d63″][vc_toggle title=”Income Statement”]A financial statement that measures a company’s financial performance by summarizing revenues and expenses for a specific period of time.[/vc_toggle][vc_toggle title=”Income Trust”]A trust that is designed to distribute cash to investors. Examples: real estate investment trusts (REITS), oil and gas income trusts, also known as royalty trusts.[/vc_toggle][vc_toggle title=”Incorporated”]A firm or company that has formed a legal corporation by completing the required procedures. See more at Alberta Corporate Registry.[/vc_toggle][vc_toggle title=”Index”]A statistical composite of securities that measures financial and economic performance. It is used as a performance benchmark.[/vc_toggle][vc_toggle title=”Index Fund”]A mutual fund that matches its portfolio to that of a specific financial market index, with the objective of duplicating the general performance of the market in which it invests.[/vc_toggle][vc_toggle title=”Individual variable insurance contract”]A contract with a life insurance company that gives the contract holder certain specified benefits based on the value of one or more segregated funds.[/vc_toggle][vc_toggle title=”Information Circular”]A document sent to shareholders that outlines important issues that will be discussed at a shareholder’s meeting.[/vc_toggle][vc_toggle title=”Initial Coin Offering (ICO)”]A way businesses can raise money by distributing crypto assets to investors.[/vc_toggle][vc_toggle title=”Initial public offering”]A company’s first sale of stock to the public.[/vc_toggle][vc_toggle title=”Initial Token Offerings”]ITOs are commonly used by companies to raise money through the sale of cryptocurrencies they have created. They are also referred to as ICO[/vc_toggle][vc_toggle title=”Inflation”]A general increase in the price of goods and services and a fall in the purchasing value of money.[/vc_toggle][vc_toggle title=”Insider”]A director or officer of a company, a shareholder who owns a significant number of shares, a director or officer of a person that is itself an insider, a subsidiary, and certain other specified individuals or companies.[/vc_toggle][vc_toggle title=”Insider disclosure”]The legally required public disclosure by insiders of their securities holdings and transactions.[/vc_toggle][vc_toggle title=”Integrated Market Enforcement Teams”]RCMP-led units of investigators focused on capital markets fraud. The initiative is a partnership with Justice Canada’s Federal Prosecution Service, provincial and municipal forces, and securities commissions and market regulators. See more at IMET.[/vc_toggle][vc_toggle title=”Interest”]Payments made by a borrower to a lender for the use of the lender’s money. A corporation pays interest on bonds to its bondholders.[/vc_toggle][vc_toggle title=”Interest Rate”]When you are borrowing money, interest rate refers to the price lenders charge you when you use their money for a specified period of time. The rate charged is usually expressed as a percentage of the total amount borrowed. When you are depositing money, interest rate refers to the amount of money a deposit will earn over the length of time it is deposited. The rate earned is usually expressed as a percentage of the total amount deposited.[/vc_toggle][vc_toggle title=”Interim financial report”]For financial years beginning on or after January 1, 2011, financial statements issued for an accounting period of less than one year. Formerly called interim financial statements.[/vc_toggle][vc_toggle title=”International financial reporting standards”]Global accounting standards that provide transparent and comparable information in financial statements. IFRS will apply to most Canadian publicly accountable enterprises for financial years beginning on or after January 1, 2011.[/vc_toggle][vc_toggle title=”Inverse ETF”]An exchange-traded fund that uses derivatives to profit from a decline in the value of an underlying benchmark.[/vc_toggle][vc_toggle title=”Investment”]A way to put your money to work in the expectation that it will provide income, increase in value or both.[/vc_toggle][vc_toggle title=”Investment fund”]An investment entity where money is pooled and invested in various assets. Each investor owns unit or shares of the fund. Investment funds include mutual funds and exchange-traded funds.[/vc_toggle][vc_toggle title=”Investment Industry Regulatory Organization of Canada”]IIROC was the national self-regulatory organization that oversaw all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC set high quality regulatory and investment industry standards, protected investors and strengthened market integrity while maintaining efficient and competitive capital markets. Effective January 1, 2023, IIROC was amalgamated with the Mutual Fund Dealers Association of Canada (MFDA) to form CIRO.[/vc_toggle][vc_toggle title=”Investor alert”]The ASC issues Investor Alerts to raise public awareness about suspicious activities.[/vc_toggle][vc_toggle title=”Investor watch”]The ASC issues investor Watches to provide information on specific products or investment opportunities that investors should be cautious about.[/vc_toggle][vc_toggle title=”Issuer bid”]An issuer offers to buy back some of their own securities. Often done when the company believes the market is undervaluing its shares.[/vc_toggle][vc_toggle title=”Issuer”]An individual, company or entity that has issued or is proposing to issue securities, often to raise capital from investors for a business venture or investment. A common example of an issuer is a company looking to sell its own securities (common shares, bonds, etc.).[/vc_toggle][/vc_tta_section][vc_tta_section title=”J” tab_id=”1584111798830-9f6c7573-9461″][vc_toggle title=”Junk Bond”]A high-risk, speculative bond with a low credit rating and high risk of default.[/vc_toggle][vc_message message_box_color=”white”]No terms to display[/vc_message][/vc_tta_section][vc_tta_section title=”K” tab_id=”1584111799745-4a2b86dd-fff9″][vc_toggle title=”Know your Client (KYC) Rule”]This requirement ensures that advisers know detailed information about their clients’ risk tolerance, investment knowledge and financial position. This information is collected on forms and is designed to protect both clients and advisers.[/vc_toggle][vc_toggle title=”Kiosk”]A physical automated teller machine that allows you to use cash to purchase crypto assets.[/vc_toggle][/vc_tta_section][vc_tta_section title=”L” tab_id=”1584111800443-6f7ee888-149a”][vc_toggle title=”Labour Sponsored investment fund”]A fund that provides venture capital to new and small businesses, and offers tax incentives to investors.[/vc_toggle][vc_toggle title=”Land banking”]The practice of purchasing undeveloped land for resale to a developer in the future.[/vc_toggle][vc_toggle title=”Legal Advice”]Advice from a lawyer on your individual circumstances.[/vc_toggle][vc_toggle title=”Letter of Credit”]A written commitment issued by a financial institution that acts as an irrevocable guarantee of payment.[/vc_toggle][vc_toggle title=”Leverage”]An investment technique where you use a small amount of your own money to make an investment of much larger value. It involves borrowing money and can result in magnified gains or losses.[/vc_toggle][vc_toggle title=”Leveraged ETF”]ETF: An exchange-traded fund that uses derivatives and debt to amplify returns of an underlying benchmark.[/vc_toggle][vc_toggle title=”Limited Partnership”]An interest in a partnership consisting of a general partner who manages the partnership, and limited partners who provide the investment capital.[/vc_toggle][vc_toggle title=”Linked Note”]A hybrid investment product that combines the features of fixed income investments and derivatives. The return is linked to the performance of an underlying benchmark, such as one or more stocks, a stock market index, a commodity, a currency, an investment fund, or other portfolio.[/vc_toggle][vc_toggle title=”Liquid Asset”]An asset that can be sold rapidly, with minimal loss in value, anytime within market hours. If your asset is illiquid, you may have to hold on to it even as it loses value.[/vc_toggle][vc_toggle title=”Liquidity”]The ability to sell an investment quickly and at a fair price.[/vc_toggle][vc_toggle title=”Locked-in retirement account”]An account for locked-in pension funds. It is like an RRSP, but funds are not normally available to holders until retirement.[/vc_toggle][vc_toggle title=”Long”]Signifies ownership of securities. Also an investment strategy where you purchase the security because you think its price will increase.[/vc_toggle][/vc_tta_section][vc_tta_section title=”M” tab_id=”1584111801067-ddd68d8f-7eba”][vc_toggle title=”Management Expense Ratio (MER)”]The management expense ratio (MER) is the total of the management fee and operating expenses expressed as a percentage of the fund’s value. Funds show their MER as a percentage of the fund’s assets.[/vc_toggle][vc_toggle title=”Management Fee”]A service fee you pay the manager of your investments to manage the risk inherent in your portfolio.[/vc_toggle][vc_toggle title=”Management’s Discussion and Analysis (MD&A)”]The section of a quarterly or annual financial report in which the issuer’s management comments on its financial results.[/vc_toggle][vc_toggle title=”Margin Account”]A trading account that allows you to borrow money to buy securities.[/vc_toggle][vc_toggle title=”Market Maker”]A company or individual who buys and sells securities to ensure market liquidity.[/vc_toggle][vc_toggle title=”Market price”]The price that buyers and sellers agree to trade the security on the open market. The prevailing price that the security is sold.[/vc_toggle][vc_toggle title=”Market Capitalization”]The value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price.[/vc_toggle][vc_toggle title=”Material Change”]A change in a company’s business that significantly affects the market value of its securities.[/vc_toggle][vc_toggle title=”Maturity date”]The date on which a bond, debenture, GIC, or term deposit is due to be repaid.[/vc_toggle][vc_toggle title=”Miners”]The competitive process between peer-to-peer computers that verifies and adds new transactions to the blockchain for a cryptocurrency that uses the proof-of-work (PoW) method.[/vc_toggle][vc_toggle title=”Money Market Fund”]Mutual fund that invests in short-term fixed income debt securities, including commercial paper (representing a short-term loan to a corporation) and treasury bills (T-bills), all generally referred to as money-market instruments. Money market funds are usually issued at a fixed price. The return you receive will vary depending on the investments the fund holds.[/vc_toggle][vc_toggle title=”Mortgage-backed Security”]An investment and lending company that purchases mortgages for investment purposes.[/vc_toggle][vc_toggle title=”Mortgage investment company”]An investment and lending company that purchases mortgages for investment purposes.[/vc_toggle][vc_toggle title=”Mutual Fund”]A pool of money that’s invested for a large number of investors by a professional money manager. A mutual fund is the most common type of investment fund.[/vc_toggle][vc_toggle title=”Mutual Fund Dealer”]A company that buys and sells the shares or units of mutual funds for investors.[/vc_toggle][vc_toggle title=”Mutual Fund Dealers Association of Canada”]he MFDA was the national self-regulatory organization (SRO) for the distribution side of the Canadian mutual fund industry. The MFDA regulated the operations, standards of practice and business conduct of its members and their representatives. Effective January 1, 2023, the MFDA was amalgamated with the Investment Industry Regulatory Organization of Canada (IIROC) to form CIRO.[/vc_toggle][vc_toggle title=”Mutual Fund Unit”]Part ownership in a mutual fund.[/vc_toggle][/vc_tta_section][vc_tta_section title=”N” tab_id=”1584111801675-59f7425f-2830″][vc_toggle title=”NASDAQ 100″]Includes 100 of the largest US domestic and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization. The index includes companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade, and biotechnology.[/vc_toggle][vc_toggle title=”National Association of Securities Dealers Automated Quotations”]The largest electronic screen-based equity securities market in the United States, founded in 1971. See more at NASDAQ[/vc_toggle][vc_toggle title=”National CTO Database”]Real-time dissemination system of cease trade order information operated and maintained by the CSA. The national CTO database includes outstanding CTOs against issuers, management, and individuals from the securities regulatory authorities in most provinces. See more at National CTO Database.[/vc_toggle][vc_toggle title=”National Registration Database (NRD)”]A tool for investors to see if an adviser is registered. In Canada, anyone in the business of trading securities or advising clients on securities must be registered with the securities regulator in each province or territory where they do business, unless an exemption applies. Visit https://aretheyregistered.ca.[/vc_toggle][vc_toggle title=”Net Asset Value”]The value of all the assets of a mutual fund, less the fund’s liabilities.[/vc_toggle][vc_toggle title=”Net Income”]A measure of a company’s profitability. To calculate net income for a business, start with a company’s total revenue. From this figure, subtract the businesses expenses and operating costs to calculate the business’s earnings before tax. Deduct tax from this amount to find the business’s net income.[/vc_toggle][vc_toggle title=”Net Worth”]The total amount of your assets, including the money in your accounts, your investments, and personal property such as home, car or business, minus any outstanding debts you have.[/vc_toggle][vc_toggle title=”New client account form”]You are required to complete this form when you open a securities trading account. This form includes basic personal information and your investment preferences.[/vc_toggle][vc_toggle title=”Non-disclosure agreement”]A contract that protects information that is considered to be proprietary or confidential. Also known as a confidentiality agreement.[/vc_toggle][vc_toggle title=”Non-fungible token (NFT)”]A type of digital token that represents a unique digital or real-world object such as art, music or video. These are usually one of a kind or part of a limited series. People will generally buy NFTs in exchange for the ownership rights to that object.[/vc_toggle][vc_toggle title=”North American Securities Administrators Association”]An association that consists of Canadian provincial, American state, and Mexican federal securities regulators. NASAA promotes cooperation in the development and enforcement of securities laws and assists members in investor protection. See more at NASAA.[/vc_toggle][vc_toggle title=”Notice of Hearing”]If ASC staff decide to pursue a case against someone or a firm, we issue a notice of hearing. It contains key information about the hearing, such as the allegations and proposed penalties. Notices are published on the ASC public website.[/vc_toggle][/vc_tta_section][vc_tta_section title=”O” tab_id=”1584111802289-da0fda04-636c”][vc_toggle title=”Offering Memorandum”]A legal disclosure document that has the same purpose as a prospectus, but is much shorter and less detailed. It must contain specific information about the investment that help potential buyers make an investment decision on exempt-market securities.[/vc_toggle][vc_toggle title=”Offering Document”]A document that offers securities for sale, including an offering memorandum or a prospectus.[/vc_toggle][vc_toggle title=”Offshore investment banking”]Investment banking that is handled outside of Canada.[/vc_toggle][vc_toggle title=”Offshore investment schemes”]Schemes that involve sending money outside of Canada.[/vc_toggle][vc_toggle title=”Ombudsman for Banking Services and Investments”]An independent Canadian body that investigates complaints from individuals and small businesses about products and services provided by banks, investment dealers, and mutual fund dealers. See more at OBSI.[/vc_toggle][vc_toggle title=”Open-ended mutual fund”]A type of mutual fund that does not limit the number of shares or units that can be issued by the fund.[/vc_toggle][vc_toggle title=”Option”]The right to buy or sell an asset at a specific price for a specific period of time.[/vc_toggle][vc_toggle title=”Order”]A decision issued by a securities regulatory authority under the securities regulation of the relevant province or territory.[/vc_toggle][vc_toggle title=”Over-the-Counter Bulletin Board”]A quotation service that displays quotes, last-sale prices, and volume information for equity securities trading over-the-counter in the United States. See more at OTCBB.[/vc_toggle][vc_toggle title=”Over-the-counter market”]A market for securities that do not trade through a regulated exchange or market.[/vc_toggle][vc_message message_box_color=”white”]No terms to display[/vc_message][/vc_tta_section][vc_tta_section title=”P” tab_id=”1584111802917-4cfc3249-c4a3″][vc_toggle title=”Pension”]A regular payment made to a retired or disabled employee, usually from a fund that the employer and employee have contributed to in prior years.[/vc_toggle][vc_toggle title=”Performance Fee”]An incentive fee paid to the manager of an investment fund that is based on the portfolio’s performance.[/vc_toggle][vc_toggle title=”Pink sheets”]An electronic system published by Pink Sheets LLC, to display bid and ask quotation prices of securities. The company changed its name to OTC Pink in 2008, and has operated as OTC Markets Group since 2010. See more at OTC Markets.[/vc_toggle][vc_toggle title=”Ponzi Scheme”]A type of scam in which investors are promised high rates of return with little to no risk, however there is no legitimate investment. To keep the scheme running, some investors may initially see returns, making it believable and sustainable. These returns are actually coming from other investor’s money. Eventually investments and new investors will cease, and with no money coming in, the scheme will collapse and investors are typically left with nothing.[/vc_toggle][vc_toggle title=”Portfolio”]All the securities which an investment company or an individual investor owns.[/vc_toggle][vc_toggle title=”Portfolio Manager”]A person who is authorized to make discretionary trades for you. Sometimes investors allow their portfolio manager to make discretionary trades on their behalf.[/vc_toggle][vc_toggle title=”Preferred Share”]An ownership security, senior to the common stock of a corporation, with preferred claim on assets in case of liquidation and a specified annual dividend.[/vc_toggle][vc_toggle title=”Price-earnings ratio”]The current market price of a stock divided by the earnings per share.[/vc_toggle][vc_toggle title=”Prime Bank schemes”]A fraud where scam artists lead investors to believe they can make high returns by participating in a secret trading regime, typically with the world’s major banks.[/vc_toggle][vc_toggle title=”Principal”]The money originally invested or lent to earn interest or other income.[/vc_toggle][vc_toggle title=”Principal protected notes”]An investment that promises to return you the original amount you invested (usually after 6 to 10 years). Any potential return above the principal is variable and is usually linked to a market index, a fund, or another underlying investment.[/vc_toggle][vc_toggle title=”Private company”]A private company is one that sells its securities under one or more exemptions and is not a reporting company.[/vc_toggle][vc_toggle title=”Private placement”]A company issues securities privately rather than offering them to the public. There is no formal prospectus and the shares are subject to resale restrictions and may not be able to be sold for a period of time.[/vc_toggle][vc_toggle title=”Private Key”]Every address on a block chain has a private key and a public key. The private key acts as the password to the account which allows you to trade crypto assets with others. The private key is not meant to be shared.[/vc_toggle][vc_toggle title=”Private Placement”]When a company issues securities privately rather than offering them to the public. The offering does not include a formal prospectus and the shares do not trade publicly on a stock exchange.[/vc_toggle][vc_toggle title=”Promissory notes”]A promise to pay back money borrowed under specific terms (payable on a specific date along with a specific interest payment).[/vc_toggle][vc_toggle title=”Proof of work (PoW)”]A system to add validated transactions to a blockchain. This involves computers racing to solve math problems before a set of transactions can be added to the blockchain. Those that solve the equation are given a fraction of the fee for the transaction and a fractional piece of a new crypto asset added into circulation.[/vc_toggle][vc_toggle title=”Proof-of-stake”]A system to add validated transactions to a blockchain. A person, often called a forger, is chosen to process a particular set of crypto asset transactions based on the amount of crypto assets they hold. This is becoming a popular system for crypto assets due to the reduction in e-waste to validate transactions.[/vc_toggle][vc_toggle title=”Prospectus”]A formal document required by law when a company wants to sell shares to the public.[/vc_toggle][vc_toggle title=”Proxy”]A written authorization that allows a person to act for another as agent or substitute.[/vc_toggle][vc_toggle title=”Public company”]A public company in BC is most commonly one that is a reporting issuer and has issued securities under a prospectus in BC or has been listed on a stock exchange.[/vc_toggle][vc_toggle title=”Public Key”]The public key is used to receive crypto assets from other people and identify your account on the blockchain. Very similar to an email address.[/vc_toggle][vc_toggle title=”Pump-and-dump Scheme”]A potential investor receives an email or a call promoting or “pumping” an incredible deal on a low-priced stock. What investors may not know is that the promoter likely owns much of this stock. As more investors buy shares, the value of the stock skyrockets. Once the share price hits a peak, the scam promoter sells or “dumps” their own shares and the value of the stock plummets, leaving investors with worthless shares.[/vc_toggle][vc_toggle title=”Put option”]A type of option that gives the holder the right to sell an asset at a specified price within a specified time.[/vc_toggle][vc_toggle title=”Pyramid Scheme”]Scam based on a hierarchical or “pyramid” structure. Participants actively promote the scheme and try to make money solely by recruiting new participants into the program. Recruiters move up the “pyramid” as new investors buy in. When new participants slow or cease to exist, the scheme loses steam and collapses. To attract new investors, recruiters will guarantee high returns and disguise the scam as legitimate. However, the majority of those who invest in pyramid schemes lose their investment.[/vc_toggle][/vc_tta_section][vc_tta_section title=”Q” tab_id=”1584111803562-5de88707-bbe1″][vc_message message_box_color=”white”]No terms to display[/vc_message][/vc_tta_section][vc_tta_section title=”R” tab_id=”1584111872308-a653b5b2-9f45″][vc_toggle title=”Rate of Return”]The gain or loss on an investment expressed as a percentage of the total amount invested.[/vc_toggle][vc_toggle title=”Real Estate Investment Trust (REIT)”]A publicly traded trust that invests in real estate through properties or mortgages.[/vc_toggle][vc_toggle title=”Real Return”]The return from an investment adjusted for inflation. For example, if your investment earned 6% interest last year, but the cost of everything went up 4%, you are only ahead (your “real return” is only) 2%.[/vc_toggle][vc_toggle title=”Recovery Room Scams”]A person who has been the target of a scam may be targeted again, because the person who defrauded the individual the first time may keep their information or sell it to another scam artist or criminal organization. After some time has passed, they are contacted again, either by the first scam artist or by someone else. They will offer to buy the shares purchased in the initial scam at an inflated price. In order to receive the money, investors are instructed to first pay a fee for this service/transaction. Once the fee is paid, the scam artist takes the money and runs – the victim has been scammed again.[/vc_toggle][vc_toggle title=”Red Flags”]A warning sign that causes you to stop and seriously consider an investment as being dangerous.[/vc_toggle][vc_toggle title=”Redeem”]To cash in, buy back, or repurchase a security.[/vc_toggle][vc_toggle title=”Redeemable”]A term that applies to bonds and preferred shares where the company may require you to sell back the bonds or shares by a certain date for a specified price. Also known as callable.[/vc_toggle][vc_toggle title=”Redemption Fee”]A fee that some mutual funds charge when you sell or redeem units. You pay this fee to the fund (not the broker). It covers the costs of redeeming your units.[/vc_toggle][vc_toggle title=”Registered”]Advisers and investment companies licensed by a securities regulator to buy and sell investments, or provide investment advice. Also, accounts and retirement plans protected by income tax and other laws.[/vc_toggle][vc_toggle title=”Registered Retirement Savings Plan (RRSP)”]A type of savings plan registered with the government that allows you to reduce the income tax you pay on money you save for retirement. Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan. During retirement, an RRSP can be another source of income for you.[/vc_toggle][vc_toggle title=”Registered Education Savings Plan Dealers Association of Canada (RESPDAC)”]RESPDAC is a trade association that represents members and establishes rules and procedures for self-regulation. See more at RESPDAC.[/vc_toggle][vc_toggle title=”Registered Retirement Income Fund (RRIF)”]A tax deferral investment available to RRSP holders who deregister their plans. The plan holder invests withdrawn RRSP funds in the RRIF, and each year must withdraw and pay income tax on a set portion of the fund.[/vc_toggle][vc_toggle title=”Registered Retirement Savings Plan (RRSP)”]A special type of savings plan registered with the government that allows you to reduce the income tax you pay on money you save for retirement. Any income you earn in the RRSP is usually exempt from tax for the time the funds remain in the plan.[/vc_toggle][vc_toggle title=”Registrant”]A firm or individual that is registered under the Securities Act to trade or advise in securities.[/vc_toggle][vc_toggle title=”Reporting Insider”]The most senior officers of a company, its subsidiaries and significant shareholders, the directors, an insider that has access to information that would allow them to influence the company’s activities, and certain other specified insiders.[/vc_toggle][vc_toggle title=”Reporting Issuer”]A reporting issuer in AB is most commonly one that has issued securities under a prospectus in BC or has at any time been listed on the TSX Venture. These issuers, often called public companies, are subject to the continuous disclosure requirements of securities laws.[/vc_toggle][vc_toggle title=”Restricted voting share”]A share that has restricted or no voting rights[/vc_toggle][vc_toggle title=”Retractable”]A term that applies to bonds and preferred shares where, under certain circumstances, you can require the company to repay the principal, or buy back the bond or share, before the security’s due date.[/vc_toggle][vc_toggle title=”Return”]The profit you make on an investment through interest, dividends or increased value of the investment (see expected return).[/vc_toggle][vc_toggle title=”Return on capital”]This is a rate of return measure. It shows how effectively a company utilizes funds invested in its operations. It is calculated by dividing after-tax operating income by the book value of capital invested in the company.[/vc_toggle][vc_toggle title=”Return of capital”]A return from all, or a portion of, an investment that is not considered income. It is not a gain because it is simply paying back money you originally invested.[/vc_toggle][vc_toggle title=”Return on investment”]A profitability measure. It is the gain or loss on an investment expressed as a percentage of the total amount invested.[/vc_toggle][vc_toggle title=”Robo-adviser”]A robo-adviser is a digital platform that provides relatively low-cost automated investing services without the human interaction typical of working with a financial advisor.
Learn more about robo-advisers. [/vc_toggle][vc_toggle title=”Rights”]The option to buy additional securities from the company at a certain price within a certain period of time.[/vc_toggle][vc_toggle title=”Rights plan”]A defensive tactic often adopted by a company’s board in response to or in anticipation of an unsolicited or hostile take-over bid.[/vc_toggle][vc_toggle title=”Risk”]Amount of uncertainty about the expected return from an investment, including the possibility that the investment may lose money or become worthless.[/vc_toggle][vc_toggle title=”Risk acknowledgement form”]A risk acknowledgement form must accompany an offering memorandum. This form states that you are aware of the risks posed by the investment. You must sign it if you decide to invest.[/vc_toggle][vc_toggle title=”Risk Tolerance”]How willing or comfortable you are to risk losing your money on an investment.[/vc_toggle][vc_toggle title=”Rule of 72″]A way to quickly estimate how long it will take an investment to double in value at a given annual rate of return. To calculate, simply divide 72 by the interest rate of your investment. For example, an investment with an average interest of 6% would take 12 years to double in value.
72/6 = 12 years
*Please note that this provides only a rough estimate of how long it takes to double your investment and becomes less accurate with interest rates over 20%.[/vc_toggle][/vc_tta_section][vc_tta_section title=”S” tab_id=”1584111884800-e019c5e7-a8a9″][vc_toggle title=”S&P 500″]Standard and Poor’s (S&P’s) Corporation is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on NASDAQ.[/vc_toggle][vc_toggle title=”Savings”]Money you have not spent or have put aside.[/vc_toggle][vc_toggle title=”Savings Account”]An account with a bank, trust company, or credit union that pays interest on the money you deposit and allows you to withdraw your money at any time.[/vc_toggle][vc_toggle title=”Savings Bond”]A loan to a government that is secured by the general credit and taxation powers of the government.[/vc_toggle][vc_toggle title=”Scam”]A fraudulent or unethical activity; a fraud or trick, an unethical scheme.[/vc_toggle][vc_toggle title=”Scholarship plan dealer”]A type of firm that is registered to sell scholarship or education savings plans.[/vc_toggle][vc_toggle title=”Securities”]Transferable certificates of ownership of investment products including bonds, notes, stocks, future contracts and options.[/vc_toggle][vc_toggle title=”Securities Regulation”]The regulation of the conduct of securities market participants including issuers that raise capital through security offerings, and their directors and officers; and securities firms, their directors and officers, and their employees registered to advise and trade in securities. Securities regulation is the responsibility of the AB Securities Commission.[/vc_toggle][vc_toggle title=”Securities regulators”]Organizations that apply the rules and laws of securities legislation to the marketplace. Contravention of the legislation may result in fines and/or a ban from participating in the public marketplace.[/vc_toggle][vc_toggle title=”Security Token”]The digital form of traditional investments like stocks, bonds or other securitized assets. A digital, liquid contract for fractions of an asset that already has value. Generally speaking security tokens are subject to securities laws.[/vc_toggle][vc_toggle title=”SEDAR (System for Electronic Document Analysis and Retrieval)”]The CSA’s national electronic filing system for disclosure by public companies and mutual funds.[/vc_toggle][vc_toggle title=”SEDI (System for Electronic Disclosure by Insiders)”]The CSA’s national web-based system that facilitates the filing and public dissemination of insider reports.[/vc_toggle][vc_toggle title=”Segregated Fund”]An insurance product that combines investment products with insurance coverage.[/vc_toggle][vc_toggle title=”Self-regulatory organization”]An organization that establishes and enforces minimum standards and rules of conduct for members. The IIROC and the MFDA are examples of self-regulatory organizations.[/vc_toggle][vc_toggle title=”Settlement Agreement”]A settlement agreement is a signed document between staff of the BCSC and a person who agrees that the allegations against them are true.[/vc_toggle][vc_toggle title=”Share”]A partial ownership interest in a company. Also known as stocks and equities.[/vc_toggle][vc_toggle title=”Shareholder”]Someone who owns shares in a company.[/vc_toggle][vc_toggle title=”Shareholders’ Equity”]The amount of a corporation’s assets belonging to its shareholders (both common and preferred) after allowance for any prior claims.[/vc_toggle][vc_toggle title=”Short Selling”]The sale of borrowed securities with the intention of repurchasing them later at a lower price and earning the difference.[/vc_toggle][vc_toggle title=”Short-Term trading fee”]A fee charged to investors when mutual fund shares are sold prior to the expiration of a hold period.[/vc_toggle][vc_toggle title=”Signature”]The method by which the owner of a private key proves that they approved a transaction with cryptocurrency.[/vc_toggle][vc_toggle title=”Simple Interest”]Interest that is paid only on the amount of the initial deposit and not on any interest the deposit earns over time, unlike compound interest. For example, in year 1, the bank pays you $5 of interest on your $100 deposit; in year 2, it again pays you interest, but only on the original $100 deposit.[/vc_toggle][vc_toggle title=”Sinking fund”]Funds are set aside in a separate account and used to pay off or redeem debt securities.[/vc_toggle][vc_toggle title=”Smart contract”]Programs stored on a blockchain that run when predetermined conditions are met. Can be used for agreements between individuals, companies or platforms.[/vc_toggle][vc_toggle title=”Spot market”]A commodities or securities market where goods are traded for cash and delivered immediately.[/vc_toggle][vc_toggle title=”SRO – Self-Regulatory Organizations”]A Self-regulatory organization (SRO) is an organization that represents its members and is organized for the purpose of regulating the operations, standards of practice, and business conduct of its members and their representatives with a view to promoting the protection of investors and the public interest through the establishment of rules that promote ethics and equality. The Securities Act (Alberta) gives the ASC authority to recognize SROs. The SROs currently recognized by the ASC are the Mutual Fund Dealers Association of Canada (MFDA) and Investment Industry Regulatory Organization of Canada (IIROC).[/vc_toggle][vc_toggle title=”Stable Coin”]Any cryptocurrency idealistically designed to have a relatively stable price, usually by being tied to a commodity or currency, or by having its supply related to an algorithm.[/vc_toggle][vc_toggle title=”Start-up company”]A new business venture that seeks private financing.[/vc_toggle][vc_toggle title=”Statement of allegation”]A statement of allegation is made by ASC staff when they have found conduct that contravenes the Securities Act or is otherwise contrary to the public interest. Staff state their allegations in a notice of hearing. Staff must then prove the allegations in a public hearing before a panel of commissioners.[/vc_toggle][vc_toggle title=”Statement of cash flows”]A financial statement that shows a company’s cash receipts and payments during a specified period.[/vc_toggle][vc_toggle title=”Statement of comprehensive income”]See our income statement definition.[/vc_toggle][vc_toggle title=”Statement of financial position”]See our balance sheet definition.[/vc_toggle][vc_toggle title=”Statute of limitations”]Law that places a time limit in which an action can be taken.[/vc_toggle][vc_toggle title=”Stock”]A share in the ownership of a company. Also known as shares and equities.[/vc_toggle][vc_toggle title=”Stock Exchange”]A market where stocks and shares are traded publicly.[/vc_toggle][vc_toggle title=”Stock Spam”]Unsolicited email that promotes a company’s stock.[/vc_toggle][vc_toggle title=”Stockholder”]Someone who owns shares in a company.[/vc_toggle][vc_toggle title=”Shares/Stocks”]is a security representing the part ownership of a corporation by a shareholder.[/vc_toggle][vc_toggle title=”Strip Bond”]An interest payment coupon and the principal portion of a bond are separated from each other and are sold as individual investments.[/vc_toggle][vc_toggle title=”Suitable Investment”]An investment that is appropriate to your risk tolerance and investment goals when considered in the context of your life circumstances and entire portfolio.[/vc_toggle][vc_toggle title=”Swap”]A derivative product whereby two parties agree to exchange an asset, cash flow, or some other liability for another.[/vc_toggle][/vc_tta_section][vc_tta_section title=”T” tab_id=”1584111909120-c7cca6ab-d955″][vc_toggle title=”Takeover Bid”]An offer that a shareholder or prospective shareholder makes to acquire at least 20% of the shares of a company.[/vc_toggle][vc_toggle title=”Tax-Free Savings Account (TFSA)”]A registered savings plan that allows you to earn tax-free investment income and capital gains on money contributed up to a set annual limit.[/vc_toggle][vc_toggle title=”Term Deposit”]A type of deposit with a financial institution that is repaid to you at a specified time (for example, 90 days or one year) and at a specified interest rate.[/vc_toggle][vc_toggle title=”Term to Maturity”]Specifies the date or term period before a bond matures and is redeemable.[/vc_toggle][vc_toggle title=”Thinly Traded”]A term that describes an inactive or infrequently traded security.[/vc_toggle][vc_toggle title=”Time Horizon”]A period of time one expects to hold an investment before withdrawing funds.[/vc_toggle][vc_toggle title=”Timing the Market”]Buying or selling securities by attempting to predict future market directions.[/vc_toggle][vc_toggle title=”TMX Group”]A public company that operates several markets including the Toronto Stock Exchange, TSX Venture Exchange, and the Montreal Exchange. See more at TMX Group.[/vc_toggle][vc_toggle title=”Token”]Shorthand for any single unit of a cryptocurrency, such as one Bitcoin or one
Dogecoin.[/vc_toggle][vc_toggle title=”Trade”]A trade is the sale of a security for valuable consideration. It does not include the purchase of a security; a transfer, pledge, or mortgage; or other encumbrance of a security for the purpose of giving collateral for debt.[/vc_toggle][vc_toggle title=”Trailer Fees”]Commissions paid by the fund company or other party to the investment dealer or advisor each year as long as the investor stays in the fund.[/vc_toggle][vc_toggle title=”Transfer Agent”]A trust company, bank, or financial institution that a company appoints to maintain records of investors and account balances and transactions.[/vc_toggle][vc_toggle title=”Treasury Bill”]A security where you lend money to the government for a short period of time. There is no interest, but rather you buy the T-bill at less than the price the government will pay you at the end of the loan term.[/vc_toggle][vc_toggle title=”Trust Company”]A financial institution, similar to a bank, that can take deposits and make loans. Trust companies often provide other specialized services that banks cannot, like administering estates and pension plans.[/vc_toggle][vc_toggle title=”Trust Units”]Units of a trust, such as a royalty trust, income trust, or real estate investment trust.[/vc_toggle][vc_toggle title=”TSX”]Toronto Stock Exchange is the national senior equity exchange and a subsidiary of TMX Group.[/vc_toggle][vc_toggle title=”TSX Venture Exchange”]The national junior equity exchange, a subsidiary of TMX Group.[/vc_toggle][/vc_tta_section][vc_tta_section title=”U” tab_id=”1584111916272-ac23c601-0d74″][vc_toggle title=”Utility Token”]A type of crypto asset that has a specific function such as allowing the owner of the token the right to participate in a particular online ecosystem or access assets within it.[/vc_toggle][vc_message message_box_color=”white”]No terms to display[/vc_message][/vc_tta_section][vc_tta_section title=”V” tab_id=”1584111925462-ff956827-a7a8″][vc_toggle title=”Volatility”]The degree and speed of changes in an investment’s value over a given period of time. Investments that change in value gradually, or minimally, are said to have lower volatility than those that change rapidly or significantly and frequently during the same time period. Volatility is usually measured historically – how an investment has acted in the past – and that behaviour suggests how the investment may behave in the future, although no one can predict the future.[/vc_toggle][vc_toggle title=”Voting Instruction Form”]A form that non-registered owners receive in place of a proxy form.[/vc_toggle][/vc_tta_section][vc_tta_section title=”W” tab_id=”1584111932786-98040e57-462a”][vc_toggle title=”Warning”]Cautionary advice that an infraction occurred without fine or penalty, and corrective action is required.[/vc_toggle][vc_toggle title=”Warrant”]The right to buy additional securities from the company at a certain price within a certain period of time. Usually included with a new issue of securities as an inducement for investors to buy the securities.[/vc_toggle][vc_toggle title=”Whale”]A person or group that holds an exceptionally large amount of a cryptocurrency. Because they own a large proportion of outstanding tokens, a whale’s decision to buy or sell can greatly impact the value of the cryptocurrency.[/vc_toggle][vc_toggle title=”Whitepaper”]A marketing document that is released by founders of a crypto project to provide potential investors with information. It can include things such as technical information about the crypto concept, statistics and roadmap for growth.[/vc_toggle][vc_message message_box_color=”white”]No terms to display[/vc_message][/vc_tta_section][vc_tta_section title=”X” tab_id=”1584111939870-5895c047-a2b7″][vc_message message_box_color=”white”]No terms to display[/vc_message][/vc_tta_section][vc_tta_section title=”Y” tab_id=”1584996818803-1b8e794b-766b”][vc_toggle title=”Yield” el_id=”yield”]Annual rate of return received on investments, usually expressed as a percentage of the market price of the security.[/vc_toggle][/vc_tta_section][vc_tta_section title=”Z” tab_id=”1584111953023-57ce0ef4-f9a3″][vc_message message_box_color=”white”]No terms to display[/vc_message][/vc_tta_section][/vc_tta_tabs][/vc_column][/vc_row][vc_row full_width=”stretch_row” css=”.vc_custom_1584008594219{padding-top: 45px !important;padding-bottom: 80px !important;background-color: #f7f6f4 !important;}”][vc_column][vc_custom_heading text=”Can’t find a term?” font_container=”tag:h2|text_align:center” use_theme_fonts=”yes” css=”.vc_custom_1585089930848{margin-bottom: 30px !important;}”][vc_btn title=”Contact the ASC” style=”custom” custom_background=”#c76f58″ custom_text=”#ffffff” shape=”round” align=”center” link=”url:https%3A%2F%2Fcheckfirst.ca%2Fcontact%2F|title:Contact||”][/vc_column][/vc_row]
