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Dari harga strike yang disesuaikan untuk menghasilkan hingga jatuh tempo dan segala sesuatu di antaranya, daftar istilah dan definisi investasi komprehensif kami sangat bagus sebagai primer tentang istilah industri atau hanya alat referensi cepat. A b c d e f g h i k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k k em k 12b-1 Fee Biaya reksa dana seperti periklanan, hubungan masyarakat dan biaya distribusi yang dibayarkan oleh pemegang saham. 401 (k), 403 (b), dan 457 Rencana pensiun yang disponsori majikan yang diberi nama berdasarkan bagian Internal Revenue Code masing-masing di mana mereka muncul. A Abandon Tindakan pemegang opsi memilih untuk tidak menggunakan atau mengimbangi opsi. ACAT Untuk transfer sekuritas dari akun perdagangan non-ekuitas ke akun perdagangan ekuitas Anda dengan broker Anda. Nilai Akun Nilai likuidasi pasar yang ditandai ke pasar yang mencakup kredit dari dana tunai atau dana pasar uang, dikurangi kewajiban termasuk posisi short dan debit. Aktual Komoditas fisik atau uang tunai, yang dibedakan dari kontrak komoditas berjangka. Tambahkan orang ke akun Anda Karena usaha pemerintah Amerika Serikat untuk memerangi terorisme dan penipuan, broker AS diharuskan untuk memperoleh, memverifikasi, dan mencatat informasi tentang orang-orang yang membuka rekening, yang merupakan penandatangan akun (dalam kasus Entity Accounts) atau Orang yang berwenang melakukan perdagangan (LTA) atas nama rekening, di antara orang lain yang terkait dengan rekening perantara. Adjusted Strike Price Perubahan harga strike kontrak opsi yang dihasilkan dari perubahan yang sesuai pada underlying. Dalam kasus opsi saham, ketika saham melakukan split 2-untuk-1, harga opsi pemogokan akan berubah untuk mencerminkan harga saham yang direvisi. Harga strike yang dihasilkan, dalam hal ini, tidak akan jatuh dalam standar 5 kenaikan. Misalnya, jika Anda memiliki 100 saham dengan 100 saham dan melakukan split 2-untuk-1, Anda kemudian akan memiliki 200 saham dari saham yang sama sekarang senilai 50 per saham. Demikian juga, jika Anda memiliki satu panggilan sebelum pemecahan saham, Anda akan memiliki dua 22 12 panggilan setelahnya. Dalam kedua kasus tersebut, nilai posisi tetap tidak berubah. Agregasi Kebijakan dimana semua posisi futures dimiliki atau dikendalikan oleh satu trader atau sekelompok trader digabungkan untuk menentukan posisi yang dilaporkan dan batasan spekulatif. Semua Bisa Istilah yang digunakan untuk merujuk pada perintah yang hanya sebagian dieksekusi. Seringkali, istilah ini berlaku untuk limit order yang tidak dapat dipenuhi sepenuhnya karena kurangnya pihak lain dalam trading pit yang bersedia membeli atau menjual dengan harga itu. All-or-None Order (AON) Perintah All-or-None memungkinkan trader untuk membeli atau menjual sejumlah kontrak tertentu dengan harga tunggal. Jumlah kontrak harus memenuhi atau melampaui ambang batas yang telah ditentukan sebelumnya, dan perintah ini harus dilakukan selama sesi perdagangan pit. Semua or None order dialihkan ke bursa utama dimana mereka secara manual ditahan dan dieksekusi saat memenuhi syarat. Selanjutnya, pesanan ini tidak tercermin dalam tawaran tanya penawaran. Umumnya, AON tidak direkomendasikan atas perintah kurang dari 20 kontrak karena eksekusi pesanan mungkin akan terpengaruh. American Stock Exchange (atau Amex atau AMEX) Didirikan pada tahun 1842 di New York City, American Stock Exchange adalah satu dari tiga bursa saham utama di A.S. bersama dengan New York Stock Exchange dan Nasdaq. Ini juga memperdagangkan berbagai opsi ekuitas dan indeks. American Style Option Sebuah kontrak yang bisa dilakukan kapanpun sebelum kadaluarsa. Sebagian besar opsi ekuitas termasuk dalam kategori ini. Tingkat Persentase Tahunan (APR) Biaya pinjaman termasuk bunga, biaya dan biaya lainnya. Dinyatakan sebagai tingkat bunga tahunan. Persentase Tahunan Persentase (APY) Tingkat pengembalian tahunan atas investasi yang memperhitungkan peracunan akun. Arbitrase Teknik yang digunakan hampir secara eksklusif oleh pedagang lantai dan profesional lainnya untuk memanfaatkan perbedaan harga yang kecil. Ask or Ask Price Harga terendah yang ditunjukkan saat ini dimana penjual bersedia menjual saham atau kontrak opsi tertentu. Harga permintaan juga dikenal sebagai penawaran. Tanyakan Ukuran Jumlah kontrak berjangka atau opsi yang ditawarkan dengan harga tertentu. Penugasan Proses melalui mana penjual opsi diberi tahu oleh Option Clearing Corporation (OCC) bahwa orang yang membeli kontrak opsi memutuskan untuk menggunakan hak untuk membeli atau menjual saham dengan harga strike. Setelah pemberitahuan, penjual opsi wajib mengirimkan atau menerima saham sesuai dengan persyaratan kontrak. Karena tidak semua kontrak dijalankan, OCC memproses penugasan secara acak. Associated Person (AP) Seseorang yang meminta pesanan, pelanggan atau dana nasabah atas nama Merchant Komisi Berjangka, Pialang Introducing, Penasihat Perdagangan Komoditi atau Operator Kolam Komoditi dan terdaftar dengan Komisi Perdagangan Berjangka Komoditi. Sementara banyak pilihan perwakilan layanan pelanggan Xpress berlisensi AP, mereka tidak pernah meminta perintah, memberikan rekomendasi perdagangan, mengomentari strategi perdagangan tertentu, atau memberi saran pajak, hukum, atau nasehat. At-the-market Setiap perdagangan dieksekusi pada tawaran atau penawaran yang berlaku. Misalnya, jika bid-ask spread pada opsi adalah 5.30 - 5.50, pelanggan yang menempatkan market order untuk menjual option akan menerima tawaran saat ini sebesar 5.30. Demikian juga, pelanggan yang ingin membeli opsi akan membayar 5,50. On-the-money Pilihan disebut uang saat harga strike sama dengan harga pasar saat ini dari saham atau instrumen yang mendasarinya. Misalnya, 75 call dan 75 put akan menjadi at-the-money dengan perdagangan saham di 75. Auto-Liquidation Ketika sebuah pilihan, pelangganXX memungkinkan akunnya melikuidasi nilai untuk mencapai tingkat kritis yang rendah sehingga optionsXpress sangat menakutkan akun. Akan menjadi saldo debet tanpa jaminan, beberapa atau semua posisi mungkin akan diimbangi tanpa pemberitahuan. Proses ini disebut sebagai auto-likuidasi, karena sistem optionsXpress secara otomatis menghasilkan perintah offsetting saat menemukan akun yang berbahaya dan tidak diperhitungkan. Automated Clearing House (ACH) Kumpulan 32 jaringan interbank elektronik regional yang digunakan untuk memproses transaksi secara elektronik. Latihan otomatis Juga dikenal sebagai Latihan oleh Pengecualian. Prosedur yang diterapkan oleh Options Clearing Corporation (OCC) untuk melindungi pelanggan dari kehilangan nilai intrinsik dari opsi yang mereka lupakan untuk berolahraga. OCC secara otomatis menjalankan semua opsi saham yang memiliki sekurang-kurangnya 0,01 nilai intrinsik atau opsi indeks dengan nilai intrinsik. Beban Back-end A Beban penjualan dibayarkan saat saham reksa dana dijual. Juga bisa disebut biaya penjualan ditangguhkan. Bulan Kembali Bulan pengiriman berjangka dengan tanggal kadaluarsa atau pengiriman ke masa depan dengan kata lain, bulan pengiriman berjangka selain bulan pengiriman di tempat, atau di dekatnya. Backspread Strategi spread dimana posisi net memiliki opsi yang lebih panjang daripada short. Untuk membuat backspread panggilan Anda mungkin menjual satu panggilan pemogokan yang lebih rendah dan membeli dua panggilan pemogokan yang lebih tinggi. Posisi ini menawarkan risiko terbatas dan potensi keuntungan tak terbatas. Perlu dicatat juga backspreads sering diawali sebagai delta posisi netral. Backwardation Sebuah pasar berjangka dimana hubungan antara dua bulan pengiriman komoditi yang sama tidak normal. Kebalikan dari Contango. Lihat juga Pasar terbalik. Base Currency Secara umum, mata uang dasar adalah mata uang dimana investor atau penerbit mengelola bukunya. Di pasar FX, Dolar A.S. biasanya dianggap sebagai mata uang quotbasequot untuk penawaran, yang berarti bahwa kutipan dinyatakan sebagai unit 1 USD per mata uang lain yang dikutip pada pasangan (misal USDJPY). Pengecualian utama peraturan ini adalah British Pound, Euro, dan Australian Dollar (ex EURUSD). Perbedaan Basis Point di atas atau di bawah masa depan yang ditentukan dimana komoditas tunai dari suatu deskripsi tertentu dijual atau dikutip. Titik Dasar Mengacu pada hasil pada obligasi. Ini adalah seperseratus dari persentase poin (0,01). Contoh: Jika harga berubah 25 basis poin berarti tarif telah berubah sebesar 0,25. Bear Spread Sebuah posisi yang terdiri dari beberapa pilihan yang mendapat keuntungan dari penurunan harga saham. Posisi mungkin termasuk saham serta pilihan. Bear Call Spread Strategi ini melibatkan penjualan call dengan strike yang lebih rendah dan membeli call dengan strike yang lebih tinggi. Keuntungan maksimal tercapai bila perdagangan saham pada atau di bawah strike lebih rendah. Bear Put Spread Strategi ini melibatkan pembelian put dengan strike price yang lebih tinggi dan menjual put dengan harga strike yang lebih rendah. Dalam hal ini, keuntungan maksimal tercapai pada atau di bawah harga strike yang lebih rendah. Bearish Istilah yang digunakan untuk menggambarkan sentimen pasar orang yang mengharapkan penurunan pasar secara umum. Best Ask or Best Offer Penawaran dikutip terendah dari semua pembuat pasar yang bersaing untuk menjual keamanan tertentu pada waktu tertentu. Tawaran Terbaik Tawaran dikutip tertinggi dari semua pembuat pasar pesaing untuk membeli keamanan tertentu pada waktu tertentu. Bid Titik harga dimana pembeli bersedia membeli kontrak saham atau opsi tertentu. Bid Size Jumlah kontrak berjangka atau opsi penawaran pada harga tertentu. Model Black-Scholes Rumus matematika memberikan nilai teoritis untuk opsi mengingat berbagai faktor yang mempengaruhi harga opsi (yaitu harga strike, harga underlying, tingkat bunga saat ini, jumlah waktu yang tersisa sampai kadaluarsa, dividen, dan volatilitas ). Bond Suatu keamanan yang mewakili hutang korporasi, kotamadya atau entitas lainnya. Nilai Buku per Saham Nilai buku perusahaan dibagi dengan jumlah saham yang beredar. BOX The Boston Options Exchange. Break Sebuah penurunan harga yang cepat dan tajam. Break-even Harga saham (atau harga) di mana posisi opsi tidak akan menghasilkan atau kehilangan uang. Breakpoints Mengurangi beban penjualan pada reksadana untuk investasi lebih besar. Semakin besar investasinya, semakin rendah biaya yang akan dikeluarkan. Breakpoints didirikan oleh perusahaan reksadana. Broker Call Rate Broker call rate adalah tingkat suku bunga yang diperhitungkan oleh broker untuk menutupi posisi keamanan dari brokerages pelanggan. Sebagian besar broker akan menagih Anda sedikit di atas jumlah ini saat Anda meminjam dengan margin. Biasanya tarifnya kira-kira satu persen lebih tinggi dari Federal Funds Rate. Batas yang disangga Harga batas yang diinginkan akan diterapkan sebagai offset pada kutipan yang dipicu, pada saat pesanan dikirim ke bursa. Bull Spread Sebuah posisi yang terdiri dari beberapa pilihan yang mendapat keuntungan dari kenaikan harga saham. Posisi mungkin termasuk saham serta pilihan. Bull Call Spread Strategi ini melibatkan membeli telepon dengan strike yang lebih rendah dan melakukan panggilan dengan strike yang lebih tinggi. Keuntungan maksimal tercapai bila perdagangan saham pada atau di atas strike yang lebih tinggi. Bull Put Spread Strategi ini melibatkan penjualan put dengan strike yang lebih tinggi dan membeli put dengan strike yang lebih rendah. Sekali lagi, keuntungan maksimal tercapai pada atau di atas harga strike yang lebih tinggi. Bullish Istilah yang digunakan untuk menggambarkan sentimen pasar orang yang mengharapkan pasar umum meningkat. Butterfly Spread Risiko terbatas, strategi penghargaan terbatas yang melibatkan 4 opsi (semua panggilan atau semua opsi) pada 3 harga strike yang berbeda. Misalnya, untuk membeli kupu-kupu, Anda bisa membeli satu panggilan dengan strike yang lebih rendah, menjual dua panggilan di tengah pemogokan, dan membeli satu panggilan pada pemogokan yang lebih tinggi. Dalam kasus ini, pemogokan tertinggi dan terendah adalah quotwingsquot saat pemogokan tengah membentuk kuotot kupu-kupu. Buy To Close Perintah masuk untuk menutup posisi short. Umumnya digunakan dalam investasi futuresoptions untuk membedakan antara membangun vs menutup suatu posisi. Buy To Open Perintah masuk untuk membuat posisi lama yang baru. Umumnya digunakan dalam investasi futuresoptions untuk membedakan antara membangun vs menutup suatu posisi. Buy-write lihat Covered Call. Membeli Hedge Sebuah lindung nilai yang diprakarsai dengan mengambil posisi long di pasar berjangka sama dengan jumlah komoditas tunai yang pada akhirnya dibutuhkan. C CBOE Chicago Board Options Exchange. Calendar Spread Juga dikenal sebagai spread waktu atau horizontal. Penyebaran ini terdiri dari opsi beli dan jual dengan expirations yang berbeda namun harga strike yang sama. Call Option Dalam hal opsi ekuitas, sebuah kontrak yang memberi pembeli hak, tapi bukan kewajiban, untuk membeli sejumlah saham tertentu (biasanya 100 saham) dengan harga yang telah ditentukan kapan saja sebelum kontrak berakhir (opsi American Style) Atau pada saat kedaluwarsa saja (European Style Option). Harga yang telah ditentukan dikenal sebagai harga strike. Carrying Broker Seorang anggota bursa berjangka, biasanya anggota kliring, dimana perusahaan lain, broker atau pelanggan memilih untuk menghapus semua atau beberapa perdagangan. RJ OBrien berfungsi sebagai optionsXpress carry broker. Biaya Operasional Biaya penyimpanan komoditas fisik, seperti biji-bijian atau logam, selama periode waktu tertentu. Biaya tercatat meliputi asuransi, penyimpanan dan bunga atas dana yang diinvestasikan serta biaya insidentil lainnya. Di pasar berjangka suku bunga, ini mengacu pada perbedaan antara imbal hasil pada instrumen kas dan biaya dana yang diperlukan untuk membeli instrumen tersebut. Juga disebut sebagai Biaya Carry. Biaya Operasional Biaya bunga yang timbul saat uang pinjaman digunakan untuk membiayai posisi saham atau opsi. Biaya tercatat juga dapat dipandang sebagai biaya peluang investasi dibandingkan dengan jumlah uang tunai yang sama dengan tingkat suku bunga saat ini. Komoditi Tunai Komoditi fisik sebenarnya dibedakan dari kontrak berjangka berdasarkan komoditas fisik. Juga disebut sebagai Aktual. Pasar Tunai Tempat dimana orang membeli dan menjual instrumen yang mendasari kontrak berjangka, seperti bursa efek. Istilah quotspotquot dan quotspot pricequot biasanya mengacu pada harga pasar tunai untuk instrumen dasar yang tersedia untuk pengiriman segera. Harga Tunai Harga dari komoditas pokok yang mendasari kontrak berjangka didasarkan pada. Setelmen Tunai Biasanya dikaitkan dengan opsi indeks, inilah proses dimana pemegang opsi menerima nilai intrinsik opsi secara tunai saat kadaluarsa. Dalam kasus ini, penjual opsi bertanggung jawab atas pembayaran tunai. Ini berbeda dengan opsi ekuitas dimana saham dipertukarkan saat kadaluarsa daripada uang tunai. Certificate Of Deposit (CD) Deposito berjangka yang disimpan di bank yang membayar sejumlah bunga kepada deposan. CFTC Komisi Perdagangan Berjangka Komoditi. Rantai Lihat rantai pilihan. Chicago Board of Trade (CBOT) Bursa berjangka terbesar di dunia, didirikan pada tahun 1848. Chicago Mercantile Exchange (CME) Pertukaran ternak terbesar di dunia, ia menelusuri asal-usulnya ke sekelompok pedagang pertanian yang membentuk Chicago Produce Exchange pada tahun 1874. Ini diberi nama sekarang pada tahun 1919. Circuit Breaker Sistem penghentian perdagangan terkoordinasi pada pasar ekuitas dan ekuitas derivatif yang dirancang untuk memberikan periode pendinginan selama pergerakan harga intraday yang besar. Perhentian tersebut dipicu oleh penurunan tertentu dalam indeks saham berbasis luas seperti Dow Jones Industrial Average atau SampP 500. Jelas Proses dimana clearinghouse menyimpan catatan semua perdagangan dan menyelesaikan arus margin pada mark-to- Dasar pasar untuk anggota kliringnya. Kelas Pilihan Panggilan atau daftar yang berkaitan dengan instrumen dasar yang sama. Tutup Jangka waktu di akhir sesi perdagangan saat semua pesanan terisi dalam kisaran penutupan. Closed-end Funds Sebuah dana yang tidak mengeluarkan saham baru atau menerima uang baru setelah penawaran umum perdana. Efek tertutup bisa dibeli di pasar terbuka, seperti saham. Close-out Last Trade Memeriksa kotak ini memungkinkan Xecutereg mengetahui bahwa Anda ingin berpartisipasi dalam penutupan perdagangan saat peringatan ini diterima dari layanan penasihat Anda. Menghapus centang kotak ini memungkinkan Xecutereg tahu bahwa Anda ingin menutup posisi Xecutereg Anda sendiri. Closing Price Harga transaksi terakhir untuk kontrak opsi tertentu pada akhir hari perdagangan. Ini mungkin atau mungkin tidak sama dengan harga penyelesaian yang digunakan oleh OCC untuk menentukan nilai akhir dari akun hari. Rentang Penutup Kisaran harga yang terkait erat di mana transaksi terjadi pada saat penutupan pesanan jual beli pasar pada saat penutupan mungkin telah terisi pada titik manapun dalam kisaran tersebut. Transaksi Penutupan Pembelian atau penjualan opsi yang mengimbangi posisi terbuka yang ada. Misalnya, jika perdagangan pertama Anda adalah membeli opsi, kontrak itu dianggap terbuka dan diperhitungkan dengan bunga terbuka sampai Anda menjualnya. Demikian juga, jika Anda menjual kontrak sebagai transaksi pembukaan Anda, Anda akan memiliki posisi terbuka dan terbuka sampai Anda membeli kontrak dalam transaksi penutupan. Collar Strategi ini melibatkan pembelian saham dan penjualan call terhadap saham tersebut (closed call), saat membeli put option pada saham yang sama (protective put). Juga dikenal sebagai quotfencequot atau quotcylinderquot. Gunakan terutama untuk melindungi posisi stok yang ada. Jaminan Efek marjinal (misalnya saham, uang tunai) menggunakan basis untuk meminjam uang. Jika nilai sekuritas (terhadap pinjaman dilakukan) dips secara signifikan, investor mungkin terpaksa memberikan tambahan agunan atau melikuidasi sebagian dari posisi untuk melunasi pinjaman tersebut. Kombinasi Spread Sebuah istilah luas digunakan untuk menggambarkan posisi yang terdiri dari jumlah panggilan panjang yang sama dan short puts atau long put dan short call. Kombinasi sering kali memiliki harga strike dan harapan yang berbeda. Commercial Paper Merupakan hutang tanpa jaminan yang dikeluarkan oleh perusahaan untuk membiayai kebutuhan jangka pendeknya. Kedewasaan berkisar antara 2 sampai 270 hari. Komoditi Pasar berjangka umum, tanpa mengacu pada bulan pengiriman tertentu. Misalnya, Jagung, Canadian Dollar, dan SampP 500 disebut komoditas. Sebuah bulan pengiriman yang digunakan bersamaan dengan komoditas mengindikasikan kontrak tertentu, seperti Emas Desember atau Gula Maret. Kolam Komoditi Suatu perusahaan dimana dana disumbangkan oleh sejumlah orang digabungkan untuk tujuan kontrak berjangka atau kontrak opsi. Konsepnya mirip reksa dana di industri sekuritas. Juga disebut sebagai kolam. Commodity Pool Operator (CPO) Individu atau organisasi yang mengoperasikan atau meminta dana untuk komoditas. CPO umumnya diminta untuk terdaftar dengan CFTC. Penasihat Perdagangan Komoditi (CTA) Seseorang yang, untuk kompensasi atau keuntungan, secara langsung atau tidak langsung menyarankan orang lain mengenai kelayakan membeli atau menjual futures atau opsi komoditas. Memberikan saran termasuk menjalankan otoritas perdagangan atas akun pelanggan. CTA umumnya diminta untuk terdaftar di CFTC. Bunga Senyawa Bunga yang diperoleh atas investasi dan bunga asli yang telah diakumulasikan. Condor Resiko terbatas, strategi penghargaan terbatas dengan karakteristik profit yang mirip dengan kupu-kupu. Dalam hal ini, 4 opsi pada 4 strike price digunakan. Seperti kupu-kupu, harga strike luar membuat quotwings.quot Berbeda dengan kupu-kupu quotbodyquot yang terdiri dari dua pilihan pada pemogokan tengah, condor quotbodyquot terdiri dari satu pilihan pada masing-masing dua serangan tengah. Pernyataan Konfirmasi Pernyataan yang dikirim oleh Merchant Futures Commission kepada pelanggan saat posisi futures atau opsi telah dimulai. Pernyataan tersebut menunjukkan harga dan jumlah kontrak yang dibeli atau dijual. Terkadang dikombinasikan dengan Purchase and Sale Statement. Contango Sebuah kondisi yang ditandai dengan harga futures berada di atas harga spot masa depan yang diharapkan. Akibatnya, harga akan turun ke harga spot sebelum tanggal pengiriman. Pesanan Orderstrade Kontinjen yang bekerja berdasarkan kondisi preset. Waktu Kontinjensi Jam dimana pesanan kontinjensi akan berlaku. Untuk menggunakan fitur ini dengan sendirinya, atur harga kontinjensi menjadi lebih besar dari 1. Trailing Trailing Kontinjen Perintah stopquot quottrailing hanya akan ditempatkan jika harga pasar untuk keamanan (saham) yang ditentukan memenuhi kriteria (lebih dari atau kurang dari harga yang dimasukkan). ). Ini berarti Anda dapat memicu perintah stopquot quottrailing, stop order yang bergerak seiring dengan pergerakan yang baik dalam keamanan, ketika sebuah saham atau indeks mencapai tingkat harga yang diinginkan berdasarkan harga dagang terakhir dari keamanan. Kontrak Di pasar berjangka, instrumen perdagangan standar yang menentukan kuantitas dan kualitas suatu komoditas (atau aset keuangan) untuk pengiriman (atau penyelesaian tunai) pada tanggal yang ditentukan di masa depan. Konvergensi Kecenderungan harga komoditas fisik dan futures mendekati satu sama lain, biasanya selama bulan pengiriman. Juga disebut quotnarrowing dari basis.quot Convertible Bond Fitur keamanan hutang yang memungkinkan pemegangnya masuk ke masalah lain. Obligasi Korporasi Kewajiban hutang yang dikeluarkan oleh perusahaan. Biaya Carry See Carrying Charge. Tingkat Kupon Persentase tingkat suku bunga atas efek pendapatan tetap. Kupon Yield Merupakan pembayaran kupon obligasi dibagi dengan nilai nominal. Cover Sebuah istilah yang digunakan untuk menggambarkan tindakan pilihan pembelian untuk menutup posisi short yang ada. Dalam hal ini, pembelian juga merupakan transaksi penutupan. Rekening Tabungan Pendidikan Coverdell Akun yang dirancang untuk membantu mendanai pendidikan anak-anak. Kontribusi dikenai pajak, namun penghasilan yang digunakan untuk memenuhi kualifikasi biaya pendidikan bebas pajak. Seluruh akun harus dicairkan sebelum ulang tahun ke 30 penerima manfaat. Setiap penarikan setelah tanggal ini akan dikenai pajak penghasilan dan denda. Akun tersebut dapat ditransfer ke anggota keluarga yang lain. Covered Call Sebuah posisi opsi short call terhadap posisi panjang di underlying stock atau futures. Covered Combination Lihat penutup yang mencekik. Covered Option Opsi dimana penjual memiliki cukup agunan (baik secara tunai maupun saham) untuk memenuhi kontrak jika terjadi penugasan. Covered Call - opsi panggilan dianggap tertutup saat penulis (penjual) dari opsi sudah memiliki saham dan tidak harus melakukan pembelian pasar terbuka seandainya penugasan terjadi Covered Put - opsi put dianggap tertutup saat penjual memiliki cukup uang. Dalam rekening untuk membeli saham pada harga strike jika pemegang opsi tersebut memiliki hak untuk menjual saham pada harga tersebut. Covered Strangle Sebuah short call dan short put dengan kadaluarsa yang sama namun strike price yang berbeda dikombinasikan dengan posisi stock yang panjang. Secara teknis, untuk menggambarkan ini sebagai quotcoveredquot adalah sedikit keliru karena hanya short call yang ditutupi oleh stock lama. Untuk jangka pendek yang harus ditutupi juga, harus ada cukup uang di rekening untuk menutupi pembelian saham pada harga strike strike jika terjadi penugasan. Kredit Kenaikan saldo tunai akun akibat penjualan atau deposit. Credit Spread (juga LimitCredit) Selisih nilai antara dua pilihan, dimana nilai posisi short melebihi nilai posisi long. Bear call spread dan bull put spreads adalah contoh spread kredit. Cross-Hedging Hedging komoditas tunai menggunakan kontrak berjangka yang berbeda namun terkait saat tidak ada kontrak berjangka untuk komoditas tunai yang dilindung nilai dan pasar uang tunai dan futures mengikuti tren harga yang sama (misalnya, dengan menggunakan makanan kedelai berjangka untuk lindung nilai tepung ikan). Cross-Margining Prosedur untuk memilah-milah sekuritas terkait, opsi, dan kontrak futures bersama-sama ketika rumah kliring berbeda membersihkan setiap sisi posisi. Cross Rate Nilai tukar antara dua mata uang yang dianggap non-standar di negara tempat pasangan mata uang tersebut dikutip. Misalnya, di Amerika Serikat, kutipan GBPJPY akan dianggap sebagai tingkat bunga silang, sedangkan di Inggris atau Jepang, akan menjadi salah satu pasangan mata uang utama yang diperdagangkan. Nilai Posisi Saat Ini Jumlah dari nilai pasar saat ini dari saham yang dapat dipecah, obligasi dan reksa dana menggunakan data real-time. Posisi pendek dikurangkan dari jumlah ini, sehingga jumlah negatif sama dengan nilai yang lebih pendek daripada nilai panjang. Tingkat Kupas Hasil Saat Ini dibagi dengan harga pasar obligasi. CUSIP A CUSIP adalah pengenal unik yang diberikan pada obligasi pada saat diterbitkan. Rekening Kustodian Akun dibuat untuk kepentingan anak di bawah umur yang dikelola oleh orang dewasa sebagai penjaga. Rekening IRA Kustodian Akun dibuat untuk kepentingan anak di bawah umur yang dikelola oleh orang dewasa sebagai penjaga dan dibatasi oleh peraturan yang terkait dengan akun IRA yang sesuai. Lihat juga IRA tradisional dan Roth IRA. Segregated Funds Pelanggan Lihat Segregated Account. Siklus Bulan kedaluwarsa yang terkait dengan serangkaian opsi tertentu. Tanggal Berakhir Ini adalah hari pertama bunga mulai menghasilkan obligasi yang baru diterbitkan. Day Order Perintah untuk melakukan perdagangan yang otomatis akan dibatalkan pada akhir hari perdagangan jika belum terisi. Perdagangan Hari Setiap posisi dimulai dan ditutup pada hari yang sama. Debenture Bond Sebuah hutang oleh perusahaan dan didukung oleh nama baik perusahaan. Debit Penurunan saldo kas akun akibat pembelian atau penarikan. Debit Spread (juga LimitDebit) Perdagangan yang mengurangi saldo saldo akun karena biaya opsi yang dibeli (long position) melebihi hasil penjualan opsi pendek. Bull call spread dan bear put spreads adalah contoh spread debet. Rasio DebtEquity Suatu ukuran leverage perusahaan, dihitung dengan membagi hutang jangka panjang dengan ekuitas pemegang saham biasa, umumnya menggunakan data dari tahun fiskal sebelumnya. Peluruhan Juga dikenal sebagai peluruhan waktu. Cara di mana nilai teoritis suatu opsi berkurang seiring berjalannya waktu. Pengukuran spesifik perubahan opsi dalam nilai dari waktu ke waktu diwakili oleh huruf Yunani theta. Tingkat di mana opsi kehilangan nilainya meningkat lebih cepat selama 30 hari terakhir dari kehidupan pilihan. Bulan Pengiriman yang Ditangguhkan Bulan pengiriman jauh dimana perdagangan berjangka sedang berlangsung, yang dibedakan dari bulan pengiriman berjangka terdekat. Pengiriman (futures) Pengalihan komoditas tunai dari penjual kontrak berjangka ke pembeli kontrak berjangka. Setiap pertukaran berjangka memiliki prosedur khusus untuk pengiriman komoditas tunai. Beberapa kontrak berjangka, seperti kontrak indeks saham, adalah uang yang diselesaikan. Pengiriman (opsi) Tindakan memenuhi kewajiban kontrak atas penugasan. Bagi seorang penulis panggilan, pengiriman terjadi saat saham dipindahkan ke pemegang panggilan pada harga strike yang ditentukan dalam kontrak. Bagi seorang penulis, pengiriman terjadi ketika penulis opsi membayar harga saham yang disepakati dan kemudian menerima sahamnya. Bulan Pengiriman Lihat Bulan Kontrak. Pemberitahuan Pengiriman Pemberitahuan yang menyatakan niat anggota kliring untuk memberikan kuantitas komoditas tertentu berkenaan dengan penyelesaian kontrak berjangka. Delta Sensitivitas suatu opsi nilai teoritis terhadap perubahan harga underlying (futures contract atau 100 shares of stock). Secara khusus, perubahan yang diharapkan pada harga opsi diberikan satu unit perubahan harga yang mendasari. Opsi panggilan delta bervariasi dari 0 sampai 1.00, sementara pilihan put delta bervariasi dari -1.00 sampai 0. Kontrak berjangka atau 100 lembar saham memiliki delta 1.00. Delta Neutral Proses dimana trader profesional mengimbangi opsi posisi dengan saham untuk menciptakan posisi yang memiliki 0 delta. Posisi delta nol, menurut definisinya, tidak panjang dan pendek. Karena itu, posisi secara teoritis memiliki risiko terbatas. Derivatif Kontrak keuangan yang nilainya kuotot dari kuotasi lain, seperti saham, obligasi, komoditas, atau indeks pasar seperti SampP 500 atau Wilshire 5000. Jenis derivatif yang paling umum adalah opsi, futures, dan sekuritas berbasis mortgage. . Diagonal Spread Sebuah posisi dimana trader membeli dan menjual options dengan strike price dan expirations yang berbeda. Misalnya, penyebaran diagonal dapat dibuat dengan membeli satu Juli 75 untuk menelepon dan menjual satu panggilan pada bulan Juni 70. Saham DIAMOND di ETF, Diamonds Trust Series I, yang melacak Dow Jones Industrial Average. Dana ini terstruktur sebagai unit investment trust. Diskon (1) Jumlah harga akan dikurangi untuk membeli komoditas kelas bawah (2) yang kadang-kadang digunakan untuk merujuk pada perbedaan harga antara futures dari berbagai bulan pengiriman, seperti dalam frasa quotJuly diperdagangkan pada harga diskon sampai bulan Mei, quot Menunjukkan bahwa harga bulan Juli turun lebih rendah dari pada Mei (3) yang diterapkan pada harga gabah yang berada di bawah harga futures. Tingkat Dividen Tingkat bunga tetap atau adjustable yang dibayarkan pada saham biasa atau saham preferen. Dow Jones Industrial Average (DJIA) Indeks pasar saham A.S. tertua dan paling dikenal di seluruh dunia, Dow mewakili pergerakan harga dari 30 perusahaan yang, menurut pendapat editor The Wall Street Journal, sebagian besar mewakili ekonomi Amerika. Downtick Ketika perdagangan terbaru untuk instrumen tertentu terjadi pada harga yang lebih rendah daripada perdagangan segera sebelum itu. E Latihan awal Hak yang diberikan oleh opsi Amerika yang memungkinkan pemegangnya untuk membeli atau menjual saham pada harga strike sebelum tanggal kadaluwarsa. Laba per saham Laba total perusahaan dibagi dengan jumlah saham yang beredar. Opsi Ekuitas Suatu kontrak yang memungkinkan pemegangnya untuk membeli atau menjual saham dari saham publik dengan harga yang telah ditentukan. Opsi Eropa Suatu kontrak yang bisa dilakukan hanya pada tanggal kadaluarsa, tidak sebelumnya. Dana yang diperdagangkan di bursa (ETF) Dana terdiri dari sekeranjang sekuritas yang dirancang untuk melacak indeks dan perdagangan seperti saham biasa. Exchange for Physical Sebuah transaksi umumnya digunakan oleh dua hedgers yang ingin bertukar futures untuk posisi kas. Juga disebut sebagai quotagainst actualsquot atau quotversus cash.quot Tanggal ex-dividend Tanggal sebelum investor harus memiliki saham agar memenuhi syarat untuk menerima dividen apa pun telah diumumkan. Pada hari saham menjadi ex-dividend, harga saham turun sebesar jumlah dividen sejak orang membeli setelah titik tersebut tidak akan menerima dividen. Hal ini sangat penting bila Anda berada dalam posisi spread. Hal ini tidak biasa untuk panggilan singkat yang akan diberikan pada hari sebelum hari Ex-Dividen (dengan pemberitahuan datang pada hari Ex-Dividen). Ini berarti pemegang spread akan bertanggung jawab atas dividen. Eksekusi Proses penyelesaian order untuk membeli atau menjual sekuritas. Begitu perdagangan dijalankan, dilaporkan oleh Konfirmasi. Juga dikenal sebagai quotFillquot. Latihan Untuk meminta hak yang terkait dengan kontrak opsi tertentu. Saat menjalankan opsi panggilan, pemegang membeli saham dengan harga yang telah ditentukan (strike) dari penjual opsi. Dalam kasus put, pemegang opsi menjual saham kepada penjual opsi dengan harga strike. Latihan dengan Exception Juga dikenal dengan Automatic Exercise. The procedure implemented by the Options Clearing Corporation (OCC) to protect customers from losing the intrinsic value of options they forget to exercise. The OCC automatically exercises all stock option that have at least 0.05 of intrinsic value or an index option worth 0.01 or more. Exercise Price Also known as Strike Price. The price specified by the option contract at which the holder can buy or sell the underlying stock. Expense Ratio The percentage of total assets used to pay for fund expenses. Expiration Date Generally the last date on which an option may be exercised. It is not uncommon for an option to expire on a specified date during the month prior to the delivery month for the underlying futures contracts. Extrinsic Value Also known as time value. The amount by which the current price of an option exceeds its intrinsic value. The price of out-of-the-money and at-the-money options is made up exclusively extrinsic value. f Face Value The dollar value of a U.S. Treasury Bill at maturity. T-Bills are issued at a discount to face value and gradually increase in value until reaching the full face value on the maturity date. Fair Value When the market price of an option is in line with its theoretical value as predicted by a formula such as Black-Scholes. Fast Market A market in which the bids and offers change so quickly that the difference between what is quoted and where a trade actually takes place may be significant. In a fast market, it often happens that customers dont get filled on orders where they might expect. When this occurs during a fast market, brokers generally cant be held responsible. Federal funds rate The interest rate that is charged by banks on overnight loans to other banks. Fill See Execution. Fill Or Kill An order that must be filled immediately or canceled. FINRA The Financial Industry Regulatory Authority (Formerly referred to as NASD), is the largest non-governmental regulator for all securities firms doing business in the United States. First Notice Day (FND) The first day on which notice of intent to deliver a commodity in fulfillment of an expiring futures contract can be given to the clearinghouse by a seller and assigned by the clearinghouse to a buyer. Varies from contract to contract. Floor Broker A trader on the exchange floor who executes customer orders. Floor Trader A person on the exchange floor who buys and sells contracts for his or her own account. In this capacity, the person acts as a market maker. Foreign Exchange The foreign exchange market. This is the cash market for foreign currencies. Trade does not occur on centralized contract markets but rather, over-the-counter in an international network of dealers. Forex See Foreign Exchange. Forward (Cash) Contract A contract which requires a seller to agree to deliver a specified cash commodity to a buyer sometime in the future. All terms of the contract are customized, in contrast to futures contracts whose terms are standardized. Forward contracts are not traded on exchanges. Free Riding The practice of buying shares or other securities without actually having the funds to cover the trade. This typically occurs when one closes out a position prior to funds being settled. Free Riding Violation An account that engages in free riding is considered to be in violation, and the account runs the risk of being put on trade restriction. This trade restriction does not prevent an account from trading, but does prevent an account from utilizing unsettled funds to initiate a trade. A free-riding violation restriction lasts 90 days. Fund Assets Amount of assets currently in the fund. Funds Available to Withdraw Estimated based on cash available and for margin accounts, it is based on the leverage from your current marginable securities. Requests to withdraw funds may be effected by the pricing of positions and the settlement of transactions. Withdrawal is subject to approval and may be delayed or refused due to the processing of trades, other withdrawals or position risk. Fund Name The official name of the fund, i.e. AIM Balanced Fund. Fundamental Analysis The practice of evaluating the attractiveness of a particular stock using financial information (e.g. revenue, profit, and management performance) as it relates to the current stock price. See Technical Analysis. Fungibility The ability to trade the same instrument interchangeably across exchanges or other marketplaces. Futures Contract A firm commitment to make or accept delivery of a specified quantity and quality of a commodity during a specific month in the future at a price agreed upon at the time the commitment was made. Futures Cash Total required segregated funds after a futures position is initiated. Funds must remain segregated until the position is closed. FX See Foreign Exchange. g Gamma The Greek letter used to represent the rate of change of an option delta as the underlying price changes. This information is primarily only helpful to professional traders who manage large positions. Globex The Chicago Mercantile Exchanges electronic trading platform. Some futures contracts are available for trading on Globex only during the U.S. evening hours, while others - such as the very popular E-mini contracts - trade electronically nearly around-the-clock. Good-Until-Cancelled (GTC) An order to execute a trade that remains open until the trade is completed or the customer cancels the order. Unlike a day order, which expires at the end of a trading day, a GTC order will remain in effect until it is filled or cancelled. The Greeks A term that refers to the analytical tools used by traders to manage risk. These include: Delta, Gamma, Theta, Vega and Rho. h Hedge A trade initiated for the primary purpose of protecting an established position (e.g. the purchase of puts to protect a long stock position). Hedge Ratio See Delta (2) and Delta Neutral. High-Yield Bond A bond with a credit rating Ba (Moodys) or BB (SampP) or lower. Historical Volatility A measurement of the actual movement of stock price over a specific period of time. This number can be plugged into an option pricing formula like Black-Scholes to determine if current option prices are high or low relative to the stocks past performance. See Implied Volatility. Holder The person who currently owns calls, puts or stock. Horizontal Spread Also known as a time or calendar spread. This spread is established by buying and selling options with different expirations but the same strike price. For example, if you bought the July 45 call and sold the June 45 call, youd be long the calendar. i ISE International Stock Exchange. The ISE is a completely electronic exchange. Implied Volatility The amount of movement expected in the stock given the current price of the options. Index As it relates to stocks, an index is created by combining multiple stocks and monitoring their performance as a group. A change in the index, therefore, represents the cumulative change of all individual components. The SampP 100 is an index that tracks the performance of 100 top companies. Index Option An option based on an index, such as the SampP 100, rather than an individual stock. These options are typically cash-settled because it would be too cumbersome to buy or sell all of the stocks that make up the index in the event of an assignment. Indicated Annual Dividend Represents the amount paid to a shareholder during the course of a year, based upon the current indicated periodic dividend (usually quarterly). Individual Account Account ownership by a single individual in their legal name only which, upon death of the owner, the account typically passes to the control of his or her estate. Individual Retirement Account (IRA) A tax-deferred retirement account set up with a financial institution such as a bank, broker, or mutual fund in which contributions may be invested in many types of securities such as stocks, bonds, money market funds, CDs, etc. Also known as a quotTraditionalquot IRA. For other types of IRAs, see Keogh plan, Simplified Employee Pension (SEP) plan, 401(k), Roth, or Rollover IRA. In-the-Money An option with intrinsic value because its strike price is below (in the case of a call) or above (in the case of a put) the current market price of the underlying stock. Initial Margin The amount a futures market participant must deposit into his margin account at the time he places an order to buy or sell a futures contract. Also referred to as original margin. See also maintenance margin. Intermarket Spread A spread between commodities that are traded on more than one market. For example, a typical intermarket spread might be made between Chicago wheat and Kansas City wheat. Intermediary Bank The intermediary bank is the bank that your financial institution uses to accept wires. Intrinsic Value The portion of an options price that can be account for by the amount the option is in-the-money. For example, with the stock at 74, a 70 call trading at 5.25 has 4 of intrinsic value (74-70) and 1.25 of extrinsic or time value (5.25-4). Inverted Market See Backwardation. Iron Butterfly A limited risk, limited reward strategy with the same general profit graph as a butterfly, but created using a combination of puts AND calls (unlike the butterfly which is ALL puts or ALL calls). In this case, the body of the iron butterfly is created by a long (or short) straddle. The wings are created using a short (or long) strangle. To create an iron butterfly, if you sell the straddle, you buy the strangle and vice versa. j Joint Tenants with Rights of Survivorship Account ownership by two or more people in which, upon death of an owner, the surviving account owners automatically retain ownership of the account. Joint Tenants in Common Account ownership by two or more people in which, upon death of an owner, a proportional percentage of the account typically passes to his or her estate. k Keogh A U.S. tax-deferred qualified retirement plan for self-employed individuals and unincorporated businesses also known as a self-employed pension. l Last Trading Day (LTD) The final day in which trading may occur for a particular delivery month. After the last trading day, any remaining commitment must be settled for delivery. LEAPSreg Long-term Equity Anticipation Securities, or LEAPSreg, are long-term stock or index options that expire more than 9 months in advance, and can last as long as 2 years. LEAPS trade like normal options but allow investors to benefit from the appreciation of equities while placing a lot less money at risk than is required to purchase stock. Leg Part of a larger position consisting of multiple options. By legging into a spread, a trader does part of the spread at one price and hopes the market will move so the rest of the spread can be completed at a better price. Leverage A characteristic of options that makes it possible for option holders to realize a greater percentage of profit and loss than they would with a long or short position in the same underlying stock. For example, a 5 move in the stock might increase (or decrease) the value of the option position by 50. Level-Load Funds Mutual funds that charge a high 12b-1 fee over the life of the fund. These funds do not charge any other sales fee. Limit Order To buy or sell a predetermined number of shares at a specified price (or better than specified price, if available). Limit orders guarantee a price (or better price than specified), but do not guarantee an execution. Liquid Market A high volume trading environment in which buyers and sellers benefit from narrow bid-ask spreads. Under these conditions, large orders can be executed without significantly impacting the market price. Liquidity A measure of how quickly a security can be sold at a fair price and converted to cash. Illiquid securities are ones that dont trade in high volume. For example, having too many shares of a stock that doesnt trade frequently would make for a position that cannot necessarily be sold. Listed Option An exchange traded put or call contract issued by the OCC with standardized strike prices and expiration dates. Load A sales commission paid when purchasing shares of a mutual fund (called a front-end load) or when redeeming shares of a mutual fund (called a back-end load). For example, if the fund has a front-end load of 5, for every 100 you place into the fund, only 95 is invested, with 5 going to the salesperson andor mutual fund company. Long Position 1) A position that results from an initial purchase of stock or options, i.e. long calls, long puts, long stock 2) a position in which the holder expects to benefit from an increase in the price of the underlying, i.e. long stock, long call, short put. Lot A unit of trading. In the futures market, one lot refers to one futures or options contract. In the forex market, one lot is equivalent to 100,000 units of a particular foreign currency. m Management fee The money paid to the manager(s) of a mutual fund, annuity subaccount, or other type of professionally managed investment. Also called an advisory fee. Maintenance Margin A sum, usually smaller than the initial margin, which must remain on deposit in the customers account for any position. A drop in funds below this level requires a deposit back to initial margin levels. Margin The amount of collateral or equity required to borrow money for investing purposes. Traders who buy on margin borrow a percentage of the purchase price from their brokerage firm. Margin Balance For cash accounts including IRAs the quotmargin locationquot is used by our system in order to custodize spread transactions and positions eligible for spread transactions. Use of the margin location in cash accounts results in custody of balances in quotmarginquot but does not indicate an extension of credit. Margin Call A brokerage firms demand that a customer deposit enough money or securities to bring a margin account back up to the minimum maintenance amount. Margin Equity Percentage Calculates the value of your securities in relation to the money you have borrowed. Keep in mind, a negative margin balance does not necessarily indicate borrowed funds. Market-If-Touched (MIT) Order An order placed much like a Limit order (buy orders should be placed below the current market price sell orders above the current market price), but when the market touches the specified price, the order immediately converts to a Market order. MIT order are used by traders who definitely want to be filled if the market touches the specified order price. Market Maker A floor trader who provides two-sided markets (bid-ask) and takes the opposite side of a customer trade. In this capacity, market makers provide liquidity in the market. Market makers may trade for their own accounts or they may represent a proprietary trading firm. Market Maker System A competitive trading environment where floor traders create efficiency and liquidity by competing with each other to provide the best bids and offers. Mark-to-Market The process of valuing an account at the end of the day based on the settlement prices of the securities. Market-Not-Held-Order An order issued by a customer allowing the floor broker to use his or her best judgment regarding the price and timing of the trade. Market-on-Close (MOC) Order An order to buy or sell a futures or options contract at the prevailing market price during the closing range (usually, the last 30-60 seconds of trading). Similar to a market order in that no price is specified during order entry. This order is ideal for a trader who wishes to offset an existing position by the close but doesnt wish to wait to the last minute to enter a market order. Market Order A customer order that is to be executed as quickly as possible at the prevailing market price. Married Put Strategy The practice of simultaneously buying stock and buying puts to limit downside risk. MIT See Market-if-Touched Order. MOC See Market-on-Close Order. Money Market Funds A type of mutual fund contains securities such as T-bills and commercial paper. Most of these funds invest in short-term debt instruments with no longer than a 90 day duration. Money Purchase Plan A Trust in which a defined portion or percentage of the account is distributed to the trustee(s) on a defined basis whether the account is profitable or not. Mortgage-Backed Securities A number of mortgages bundled together into a single security to be sold. Municipal Bond A bond that is issued by a state or local government. Historically, the interest paid on these bonds has been exempt from federal, state and local taxes in the state of issuance. Municipal Securities Rulemaking Board (MSRB) An independent self-regulatory organization in charge of establishing rules and regulations in trading of municipal securities. Mutual Fund An open-end investment company that invests the money of thousands of people in a number of securities to achieve a specific objective over time. Mutual Fund Category A number of mutual funds specialized to a certain type of investment objective, carrying similar levels of risks and returns. Mutual Fund Exchange Switching on mutual fund investment from one fund to a different fund within the same mutual fund family. Mutual Fund Family A group of mutual funds managed by a single company. n Naked Option Options that are sold on securities when the seller does not actually own shares of the underlying securities or options. Nasdaq (National Association of Securities Dealers Automated Quotations) A computerized system that stores and displays up-to-the-second price quotations for securities traded over the counter. National Best Bid or Offer (NBBO) A term applying to the SEC requirement that brokers make their best effort to offer customers the best available ask price when they buy securities and the best available bid price when they sell securities. NBBO See National Best Bid or Offer. NBBO Spread Quote An NBBO Spread Quote reflects the best quotes printed from participating exchanges on each leg of the spread or other combination combined. For a long leg, the NBBO single leg quotaskquot quote will be used, while short leg quotes will use the NBBO quotbidquot quote to combine for a synthetic NBBO combination trade quote. Nearby Delivery Month The futures contract month closest to expiration. Also referred to as the Spot Month. Net asset value (NAV) The price of each share of a mutual fund. It is calculated by subtracting the funds liabilities from its total assets, and dividing that figure by the number of shares outstanding. The NAV is the amount of money that an investor would receive for each share if the mutual fund sold all of its assets, paid off all of its outstanding debts, and distributed the proceeds to shareholders. Net income Gross income minus total expenses gives you net income. Youll find this information on the income statement. Net investment Gross, or total, investment minus depreciation. Net profit The bottom line. This is how much money the company made in profits. It can also refer to net profit margin, which is a percentage telling you how many cents on each dollar is pure profit. Net profit margin Net income as a percentage of sales. You get this by dividing net income by sales. Since its a percentage, it tells you how many cents on each dollar of sales is pure profit. New Next Trade Checking this box lets Xecutereg know that you wish to participate in the next new trade recommended by your advisory service. Unchecking this box lets Xecutereg know that you do not wish to participate in the next new trade recommended by your advisory service. New York Mercantile Exchange (NYMEX) Founded in 1872 as a market for cheese, butter, eggs, its principle commodities today include heating oil and petroleum products. New York Stock Exchange (NYSE) The oldest and largest stock exchange in the United States. No-load fund A mutual fund that does not charge a sales commission. Non-Acat An account transfer that is done manually because the delivering firm is not a member of the ACAT system, or you are requesting a partial transfer, which requires a manual process. When the transfer is done manually the request is physically forwarded to the delivering firm and upon their receipt they have up to 30 business days to act on it. Non-callable A security, such as a note or bond, that cannot be called prior to its maturity. Non-equity Option An option that has an underlying security other than stock, e.g. futures, commodities. Not Held An order submitted to a brokerage firm with the understanding that it will use its best efforts to execute the order according to the customers instructions, but the broker may not be held responsible or liable for any lost profits, trading losses, or damages resulting from the manner in which the order is handled. optionsXpress accepts contingent orders strictly on a quotNot Heldquot basis. o One Cancels Otherreg (OCO) A qualifier used when multiple orders are entered and the execution of one order cancels a second or alternate order. For example, with OCO you can place two orders linked to each other, allowing you to place a stop loss order on the same option. One Triggers Otherreg (OTO) An optionsXpress qualifier used when multiple stock or option orders are entered and the execution of one order submits a second or alternate order. Open-End Fund A mutual fund that continues to sell shares to investors, and will buy back shares when investors wish to sell. Opening Range Range of closely related prices at which transactions took place at the opening of the market buying and selling orders at the opening might be filled at any point within such a range. Opening Transaction A trade that creates a new position or adds to an existing one. The new position can consist of either short or long options or stock. Open Interest The number of contracts, either long or short, traded on a particular option that have not been offset by a closing transaction. A closing transaction lowers open interest while an opening transaction increases open interest. Open Outcry The term used to describe the pit-trading environment in which market makers compete for trades. Option A contract that grants the holder the right, but not the obligation, to buy or sell a particular security at a predetermined price for a set period of time. Conversely, the seller of the option has an obligation to fulfill the terms of the contract in the event of exercise by the option buyer. Option Buying Power Calculated based upon account equity less any requirements and pending purchases. Option Chain A way of quoting options prices through a list of all of the options for a given security, including the various strike prices, expiration dates, and whether they are calls or puts. Option Period The time from the creation of an option to its expiration. Option Clearing Corporation (OCC) The firm responsible for issuing and standardizing all exchange traded options. The OCC, which serves as an intermediary between buyers and sellers, guarantees that all option contracts are honored and executed according to their terms. Option Requirements The balance you must maintain based upon the risk of the options positions in your account. Please review our margin guidelines for more information. Option Writer The person who sells an option in an opening transaction thereby creating the obligation to meet the terms of the contract in the event of assignment. Original Issue Discount (OID) An original issue discount bond is a bond issued at a price below par value. A zero-coupon bond is an example of an OID. Out-of-the-Money An option that has no intrinsic value because its strike price is above (in the case of a call) or below (in the case of a put) the current market price of the underlying. Extrinsic or time value is the only component of an out-of-the-money options price. Over-the-Counter Market (OTC) A market where products such as foreign currencies are bought and sold by telephone and other electronic means of communication rather than on a designated futures exchange. p Pacific Exchange PCX Located in San Francisco, an exchange that trades equities and options. Pair Trading Commonly refers to buying one stock and selling another related stock against it. Parity The term used to describe an in-the-money option with a price that is the same as its intrinsic value. For example, with a stock at 50, a 40 call trading at 10 would be trading at parity because its price does not include any extrinsic or time value. In contrast, a 40 call trading at 10.25 would not be considered at parity because it includes a .25 of time value. Partial Fill A partial fill is when part of a limit order has been filled. A partial fill may be completed in the same day and then subsequently cancelled or the remainder may be filled. A day limit order that is partially filled will have the remainder cancelled at the end of the day if it has not been entirely filled. A partial fill on a GTC order may be carried over to the next market day until it is cancelled or filled in its entirety. Note: If a Good-Until-Cancelled (GTC) order is partially filled one day and the balance of the order is filled on another day, you will be charged two separate commissions. If you do not want to accept a partial fill for an order, you may indicate it is an quotAll-or-Nonequot order, however All-or-none orders have unique risks. See also All-or-None, GTC, split fill. Also, an order that is partially filled during the day but then modified (cancelled and replaced) will create a separate commission charge since this is a new order in the marketplace. Price-to-earnings ratio (PE) The share price of a stock, divided by its per-share earnings over the past year. PE (Forward) Priceearnings ratio, using earnings estimates for the next four quarters. PEG Ratio A stocks priceearnings ratio divided by its year-over-year earnings growth rate. Pending Purchases The current market costs and any potential margin requirements, based on real-time data, for the orders you have open. This sum includes OCO (quotone cancels otherquot) orders it does not include open contingent orders. Philadelphia Stock Exchange (PHLX) The Philadelphia Stock Exchange (PHLX) was founded in 1790. The PHLX trades stocks, equity options, index options and currencies. Physical Settlement The process of settling a futures contract at the expiration date by delivering the underlying instrument. Pin Risk When an underlying security settles at the options strike price. The risk results from short option holders not knowing if they will be assigned. Pips Slang forex reference to digits added to or subtracted from the fourth decimal place in a quoted currency rate, i.e. 0.0001. See also Points. Pit The area at an exchange where traders meet to buy and sell specific contracts (e.g. 30-year bond options, IBM options, DELL options). Points Predominately a forex term used to describe digits added to or subtracted from the fourth decimal place in a quoted currency rate, i.e. 0.0001. Pool See Commodity Pool. Portfolio All the securities held by an individual, institution, or mutual fund. Position The net of all open long and short contracts in a specific trading account. Position Limits Set by an exchange, this is the number of option contracts (or deltas) that an individual trader cannot exceed. The specifics of this limit differ by exchange and option type. Premium The extent to which an option price exceeds its intrinsic value. 2) the total price of an option including both intrinsic and extrinsic or time value. Price to Book Ratio A stocks capitalization divided by its book value. Price to Cash Flow Ratio A stocks capitalization divided by its cash flow for the latest fiscal year. Price to Sales Ratio A stocks capitalization divided by its sales over the trailing 12 months. Primary Market In cases where the same contract is traded on multiple exchanges, the exchange that handles the most volume is considered the primary market. This can change day to day. Profit Sharing Plan Trust A Trust in which a defined portion or percentage of the account profits are shared with the trustee(s) on a defined basis. Purchase and Sale Statement (PampS) A statement sent by a Futures Commission Merchant to a customer when a futures or options position has been liquidated or offset. The statement shows the number of contracts bought or sold, the prices at which the contracts were bought or sold, the gross profit or loss, the commission charges and the net profit or loss on the transaction. Sometimes combined with a Confirmation Statement. PutCall ratio A ratio of the trading volume of put options to call options. It is used to gauge investor sentiment. For example, a high volume of puts compared to calls indicates a bearish sentiment in the market. Put Option In the case of an equity option, a contract that gives the holder the right, but not the obligation, to sell a stock at a set price for limited period of time. The seller or writer of the option is obligated to buy the stock at the strike price in the event that the option is assigned. Pyramiding The practice of using accrued paper profits to margin additional trades. r Range The difference between the highest and lowest prices recorded during a given trading session, week, month, or year. Ratio Calendar Spread A strategy in which more options are bought or sold at one expiration than another. Ratio Spread 1) Any option strategy in which the number of contracts purchased is greater or less than the number sold. 2) a strategy in which the number of options traded against a stock are not in a 1:1 proportion with the stock. Ratio Write A partially covered position in which the options sold represent more shares than are covered by the corresponding stock position (e.g. long 100 shares of stock, short 2 out-of-the-money calls). If the stock price rises and the options are assigned, this person will have to turn over 200 shares at the strike price. However, since the person only has 100 shares, the potential loss on the position is unlimited because one of the calls is uncovered. Realized Profit amp Losses The profit or loss that results from closing a position. Redemption Fee Fee levied for selling shares of your index fund. Usually a fixed percentage of the total value of your fund. Refunding The retiring of a bond by issuing a new bond. Repair Strategy A stockoption strategy designed to compensate for a losing long stock position. In this case, an in-the-money call is purchased and two out-of-the-money calls are sold. The credit received effectively lowers the break-even point of the stock thereby covering some of the unrealized losses. Resistance A price level at the top of a trading range that a stock has reached on several occasions but has not penetrated due to increased selling pressure at that price. This is a key concept of technical analysis. Retender In specific circumstances, some contract markets permit holders of futures contracts who have received a delivery notice through the clearinghouse to sell a futures contract and return the notice to the clearinghouse to be reissued another long others permit transfer of notices to another buyer. In either case, the trader is said to have retendered the delivery notice. Retracement A reversal within a major price trend. Revenue Bond A municipal bond issued to finance a specific public works project and is supported by the revenues of that project. Reversal A change of direction in market price. rho The Greek letter representing the expected change in an options price given a 1 move in interest rates. Rolling A strategy in which the trader closes one position and immediately opens another position at a different strike or expiration. Rollover Moving all or a portion of tax-deferred retirement plan savings into another plan (e.g. moving 401(k) assets into an IRA). Rollover IRA A traditional individual retirement account holding money from a qualified plan, such as a 401(k). Roth IRA A tax-deferred retirement account that permits a contribution up to 4,000 per year or 4,500 per year if over age 50 (2005). Contributions are subject to taxes. However, withdrawals, subject to certain rules, are tax exempt. Round Turn A round turn counts both the buy and the sell of a trade as one event. In a typical exchange volume measurement, a one-contract trade between a buyer and seller would be counted as one round turn. From the customers perspective, a round turn represents two filled orders from his or her brokerage firm - one to take a position and one to offset that position (i.e. same customer, different trades). See also side. s Scalper A floor trader who profits from the spread between the bid and the offer as well as from short-term price fluctuations. SEC (Securities and Exchange Commission) The federal agency charged with protecting investors and maintaining the integrity of the securities markets. Secondary market A market that provides liquidity for previously listed securities. Securities Assets such as shares of stock, bonds, or any kind of financial asset that can be traded. Securities Investor Protection Corporation (SIPC) The SIPC maintains a special reserve fund authorized by Congress to help investors with assets in the hands of bankrupt and otherwise financially troubled brokerage firms. SIPC either acts as trustee or works with an independent court-appointed trustee in a fraud case to recover funds. The statute that created SIPC rules provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of 500,000. This figure includes a maximum of 100,000 on claims for cash. Sell To Close An order entered to close a long position. Generally used in futuresoptions investing to distinguish between establishing vs. closing a position. Consequently, a quotbuy to openquot order is always used to open a long position. Sell To Open An order entered to establish a new short position. Generally used in futuresoptions investing to distinguish between establishing vs. closing a position. Consequently, a quotbuy to closequot order is always used to close a short position. SEP IRA Simplified Employee Pension Plan IRA. A retirement plan for self-employed people or owners of small companies which allows them to defer taxes on investments intended for retirement. Selling Hedge Selling futures contracts to protect against possible decreased prices of commodities which will be sold in the future. Series of Options Calls and puts based on the same underlying stock with the same strike and expiration. Settled Funds After a trade has cleared, proceeds are considered settled funds. Stock trades settle in T 3 business days. All option trades settle in T1 business days. Mutual Fund trades settle at various times - with some being same day, others T1, and others still T3. Bonds can also vary in terms of a settlement date. Settlement Price The price established by the Options Clearing Corporation at the end of the trading day as a standard to value the securities in individual trading accounts or in the morning in the case of some European Options. The settlement price is based on the opening prices of all the stocks in a particular Index. These figures are then used to find the settlement price. Short Position An option or stock position that will profit from a decrease in the price of the underlying (e.g. short stock, short call, long put). Short Stock Position A position initiated by selling stock in an opening transaction with the goal of buying it later at a lower price (i.e. sell high, buy low). To accomplish this, the stock must be borrowed from a broker-dealer before it can be sold. Side A side considers the buy and sell actions of a trade as separate events. Each matched trade, and each contract, has two sides - the buyer side and the seller side. Taken together, these two sides equal one round turn. Measuring matched trade volume quotper sidequot counts volume on each side of the trade. Simplified Employee Pension (SEP) plan A SEP is an easy method for a small employer to establish a retirement plan for employees without the complex administration and expense found in qualified retirement plans. In fact, an employer may establish a SEP only if that employer has no qualified retirement plan in effect. Under a SEP, the employer may make a contribution of up to the lesser of 15 or 30,000 of compensation to IRAs established in each employees name. SIPC See Securities Investor Protection Corporation. Speculator A market participant who tries to profit from buying and selling futures and options contracts by anticipating future price movements. Speculators assume market price risk and add liquidity and capital to the futures markets. Spot Delivery Month The nearest delivery month among all those traded at any point in time. The actual contract month represented by the spot delivery month is constantly changing throughout the calendar year as each contract month reaches its last trading day. See Also Nearby Delivery Month. Spot Price The price quoted for the actual commodity same same as cash commodity price. Spread 1) the difference between the bid and the offer (e.g. if the bid-ask is 5- 5.30, the spread is 0.30). 2) a limited risk, limited reward strategy established by combining options that would, if separate, profit from opposite moves in the price of the underlying. Spread Stop Order A contingency order to buy or sell an option spread when the market reaches a particular level. When the price reaches that level specified in the stop order, the stop order triggers a sellbuy to closeopen the spread at the customers predetermined price (Limit or Market). Standard amp Poors 500 Index An index of 500 of the biggest publicly traded companies in the United States. The SampP 500 is generally thought of as the best measurement of the overall U.S. stock market. Static Return The return that an investor would make on a particular position if the underlying were unchanged in price at the expiration of the options in the position. Stock Buying Power Your purchasing power for stock margin accounts show twice the stock purchasing power of cash accounts for stocks that trade over 5 dollars. Stop-Limit Order Like a stop order, this order will be triggered by a move up or down to a particular price level. Once that level is reached, the order becomes a limit order, which must be executed at a specific price. In contrast, a regular stop order will be executed at the market price rather than at a specified price. Stop Order A contingency order to buy or sell a stock when the market reaches a particular level. When the price reaches that level specified in the stop order, the stop order becomes a market order and is executed at the best possible price. Stop-with-Limit Order Used by the trader who wishes to give the floor broker a limit as to how far through the specified stop the order may be filled. Two prices must be stipulated when the order is placed -- the stop price and the limit price. When the stop is elected, the order will be filled if it is possible to do so without exceeding the limit price. If this isnt possible, the order becomes a working limit order. Also, a stop with limit order will be placed as a straight limit order if, when received by the exchange, the stop price already has been violated. Straddle An option position in which a call and a put with the same strike price and expiration are both bought (long straddle) or sold (short straddle). A long straddle has unlimited profit potential given a large move up or down. A short straddle has limited profit (if the stock remains stable) and unlimited risk (if the stock moves significantly in either direction. Strangle An option spread strategy involving a long put and a long call or a short put and a short call with different strikes but the same expiration. The most common strangles involve out-of-the-money options. Strike Price Also known as Exercise Price. The price, specified by the option contract, at which the holder can buy or sell the underlying stock. Strike Price Interval The standard price difference between consecutive options. For stocks over 25, the strikes generally occur at 5 intervals (e.g. 30,35,40). Stocks below 25 have options that trade at 2.50 intervals. Subordinated Debenture A debenture whose claim to interest and principal of the corporation comes after those of the regular debt securities. Support In a period of falling prices, the support level is a price below which the stock tends not to trade because of the reemergence of b uyers. For example, a stock that has fallen near 27 on several occasions only to reverse the trend and increase in price is said to have support at 27. Symbol Ticker symbol. Synthetic Positions Also known as an equivalent position. By using a combination of options or options and stock, traders can create positions that have the same riskreward characteristics of option only or stock only positions. The following summarizes the most common synthetic positions. Synthetic long stock A short put option and a long call option with the same strike and expiration. Synthetic short stock A long put option and a short call option with the same strike and expiration. Synthetic long call A long put and a long position in the underlying stock. Synthetic short call A short put and a short position in the underlying stock. Synthetic long put A long call and a short position in the underlying stock. Synthetic short put A short call and a long position in the underlying stock. t Technical Analysis An approach to analysis of futures markets which examines patterns of price change, rates of change, and changes in volume of trading, open interest and other statistical indicators. See also Charting. Theoretical Value The fair value of an option as predicted by a mathematical formula such as Black-Scholes. This takes into account the following factors: strike price, the current price of the underlying, interest rates, time remaining until expiration, dividends (if any), and volatility. Theta The Greek letter representing the change in an options value given a one-unit (day) change in time. Tick The smallest increment an option, stock, or commodity price can change. Time Decay The way in which an option naturally loses value as time passes. Time Spread Also known as a horizontal or calendar spread. This spread is established by buying and selling options with different expirations but the same strike price. For example, if you bought the July 45 call and sold the June 45 call, youd be long the calendar. Time Value Also known as extrinsic value. The amount by which the current price of an option exceeds its intrinsic value. The price of out-of-the-money and at-the-money options is made up exclusively of extrinsic value. Total Money Markets amp Cash Defined as the net sum of your balances held in cash, margin, and money market funds. This does not include your mutual funds balances. CashMarginMoney Market sweep movements update daily before the market opens. Trader 1) An exchange member who buys and sells contracts in the trading pit of an exchange. 2) an investor who holds positions for a short period of time in an effort to capitalize on market momentum. Trading Level Your trading level has been determined based on your trading experience, income level, age and overall knowledge of options. The table below outlines the various trades permitted at each trading level. Trading Level Basic Definitions Traditional IRA A tax-deferred retirement account that permits a contribution up to 4,000 per year or 4,500 per year if over age 50 (2005). Earnings are tax-deferred until withdrawals begin. Eligible withdrawals may begin at age 59 12 or later, a 10 penalty will apply for non-qualified withdrawals made prior to age 59 12. Eligible withdrawals will be taxed at the current tax rate. Trailing Stop A quottrailing stopquot order is a stop order that moves along with a favorable movement in a security. Trailing sell stop orders will move upward a defined distance as long as the security moves upward. Trailing buy stop orders will move downward a defined distance as long as the security moves downward. Trailing (Stop) Trigger The price at which a trailing stop will activate. Contingent Trigger On entry of the order the customer can choose bid, ask or last. If last is chosen, it will only be used if it is in between the consolidated bid and ask. Transaction Costs The fees related to initiating and maintaining a position. These include commissions, margin fees, and exchange fees. Treasury Auction Where new issues of Treasury bills, notes and bonds can be sold to the investing public. Treasury Bills (T-Bills) Obligations issued by the department of the Treasury maturing in 13, 26 or 52 weeks. Treasury Bond (T-Bond) A long term government debt security with maturity of 10 to 30 years. Treasury Note (T-Note) A medium term government debt security with maturity of 1 to 10 years. Trend The general direction, either upward or downward, in which prices have been moving. Trendline In charting, a line drawn across the bottom or top of a price chart indicating the direction or trend of price movement. If up, the trendline is called quotbullishquot if down, it is called quotbearish.quot Triple witching It occurs when the contracts for stock index futures, stock index options and stock options all expire on the same day. This happens four times a year: The 3rd Friday of March, June, September and December. Trust A legal arrangement in which an individual (Trustor) gives fiduciary control of the account to a person or institution (Trustee) for the benefit of their estate or beneficiaries. A trust can include a variety of entities. Type of Options There are two option types: puts and calls. u Unit Investment Trust (UIT) An SEC-registered investment company which purchases a fixed, unmanaged portfolio of income-producing securities and then sells shares in the trust to investors. The major difference between a Unit investment Trust and a mutual fund is that a mutual fund is actively managed, while a unit investment trust is not managed at all. Uncovered Option Also known as a naked option. A short position, not protected by offsetting options, in which the writer of the options lacks the stock or collateral that would be required upon assignment. For example, a naked call writer doesnt own the stock that would have to be sold at the strike price if the calls were exercised. Similarly, a naked put writer doesnt have the full amount in the account to buy the underlying shares at the strike price in the event of an exercise. For obvious reasons, naked option writing is a risky strategy. Underlying Security The stock, commodity, or other financial instrument on which an option contract is based. Unsettled Funds Funds that are not available to withdraw until specified settlement. Cash accounts can purchase additional positions using unsettled funds but cannot close out the position until trades settle. UPC 11830 In 1993, the U.S. Securities and Exchange Commission approved a new section of the Uniform Practice Code (UPC) requiring FINRA members to close out short sales in NASDAQreg securities that meet a certain clearing short position threshold. Both NASDAQ National Marketreg and NASDAQ Small Cap Market securities can be restricted under UPC 11830. Under the rules, the short sellers brokerdealer must close out short sale of specific securities 10 days after normal settlement date if delivery of security has not accrued and the transaction is not exempt. Securities subject to close-out requirement are those with an aggregate quotclearingquot short position of 10,000 shares or more that equals or exceeds one half of one percent of the total shares outstanding. The FINRA will identify these securities daily based on data from National Securities and Clearing Corporation and compile a quotrestricted list.quot Any subsequent short-sale transaction in a security on the list that is not completed by delivery of shares within the prescribed time frames will be subject to mandatory close-out if a quotfail-to-deliverquot situation exists 10 days after normal settlement date. The rule applies to customer and proprietary short sales, but exempts quotbona fidequot market making activities and short sales that results in a quotbona fidequot fully hedged or arbitraged position. For more information, please see FINRA Notice to Members 93-53. Uptick When the most recent trade for a particular instrument occurs at a higher price than the trade immediately preceding it. v Vega The Greek letter representing the change in an options theoretical value given a 1 change in the volatility of the underlying. Versus Cash See Exchange for Physicals. Versus Purchase Notes This note is used to specify the original shares of stock or a fund sold for tax recording purposes. In order to designate shares, please enter a note in the free text field (e.g. quotVs. 200sh. XYZ BOT 8304quot). The note will appear under the quotRemarksquot area of your confirmation. Vertical Spread A position in which the options bought and sold have the same expiration but different strike prices. Volatility The mathematical measure of stock price fluctuation over a period of time. See Implied Volatility. w Warehouse Receipt A document guaranteeing the existence and availability of a given quantity and quality of a commodity in storage commonly used as the instrument of transfer of ownership in both cash and futures transactions. Write To sell an option in an opening transaction. Writer A person who has sold an option in an opening transaction and is now short a contract that may or may not be offset by stock or other options. x Xspread Direct Quotes These spread quotes are retrieved directly from exchange liquidity providers and represent quotes with a potential for discount beyond a combination of single leg quotes on spreads. y Yield The percentage return on an investment. Yield to Call (YTC) The yield of a bond or note if you were to buy and hold the security until the call date. This yield is only valid if the security is called prior to maturity. Yield to Maturity (YTM) The yield of a bond or note if you were to buy and hold the security until maturity. YTM takes into account interest rate, length of time to maturity, price paid and assumes all interest received over the life of the security can be reinvested at the original purchase yield.Slang Words: What Do Canadians Say For any Canadian who travels abroad, you may hear the stereotypical eh, aboot (about), or worse how do you survive living in an igloo all year But here, just like the diversity of our population, culture and local food we also have a long list of spoken languages, including our very own Canadian one. Now even though our two official languages are English and French, the country is home to more than 200 other mother tongues including the most popular ones, Mandarin, Cantonese, Punjabi and Spanish, according to a 2011 Statistics Canada report. But between our different dialects, provinces and home-grown businesses, Canadians have also come up with their own take on everyday words. Some of them are ingrained we buy double doubles with loonies and toonies, we drink pop, go to the washroom and celebrate the end of the alphabet with a zed. So in honour of our wonderful land turning 146 on July, 1, weve pulled together a fun list of good ol Canadian slang, words and phrases including a few that might surprise you. And yes we know, this list is just scratching the surface, so tell us what your favourite Canadian words are in the comments below and well add them to our gallery. Most Canadian Words And PhrasesStock Market Terms Speak the language of the stock market - consult our Stock Market Terms for a glossary of terms and vocabulary that may help you better understand the capital markets. NOTE: Some of the definitions are TSX-specific and, as a result, may differ from standard general definitions. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Advanced Companies Companies listed on TSX Venture Exchange that meet higher asset, market value and shareholder distribution requirements than those classified as venture companies. This classification is related to TSX Venture Exchange Tier 1 status. Agent A securities firm is classified as an agent when it acts on behalf of its clients as buyer or seller of a security. The agent does not own the security at any time during the transaction. Alberta Securities Commission (ASC) The provincial regulatory agency responsible for overseeing the capital market in Alberta. All-or-None Order An order that must be filled completely or the trade will not take place. American-Style Options Options that can be exercised any time during their lifetime. These are also known as open options. Annual Report A publication, including financial statements and a report on operations, issued by a company to its shareholders at the companys fiscal year-end. Anonymous Trading Permits Participating Organizations to voluntarily withhold their true broker identities when entering orders and trades on TSX trading systems. Arbitrage The simultaneous purchase of a security on one stock market and the sale of the same security on another stock market at prices which yield a profit. Ask or Offer The lowest price at which someone is willing to sell the security. When combined with the bid price information, it forms the basis of a stock quote. Ask Size The aggregate size in board lots of the most recent ask to sell a particular security. Assets Everything a company or person owns, including money, securities, equipment and real estate. Assets include everything that is owed to the company or person. Assets are listed on a companys balance sheet or an individuals net worth statement. Assignment The notification to the seller of an option by the clearing corporation that the buyer of the option is enforcing the terms of the options contract. At-the-Money When the price of the underlying equity, index or commodity equals the strike price of the option. Averages and Indices Statistical tools that measure the state of the stock market or the economy, based on the performance of stocks, bonds or other components. Examples are the SampPTSX Venture Composite Index, the SampPTSX Composite Index, the Dow Jones Industrial Average and the Consumer Price Index. Averaging Down Buying more of a security at a price that is lower than the price paid for the initial investment. The aim of averaging down is to reduce the average cost per unit of the investment. Basis Point One-hundredth of a percentage point. For example, the difference between 5.25 and 5.50 is 25 basis points. Bear Market A market in which stock prices are falling. Best-Efforts Underwriting A type of underwriting where the investment firm acts as an agent. The firm agrees to use its best efforts to sell the new issue of securities, but does not guarantee the issuing company that the securities to be issued will be sold. Beta A measurement of the relationship between the price of a stock and the movement of the whole market. Better-Price-Limit Orders An order with a limit price better than the best price on the opposite side of the market. A better-priced buy order has a limit price higher than the best offering. A better-priced sell order has a limit price lower than the best bid. These are available only at the opening. Bid The highest price a buyer is willing to pay for a stock. When combined with the ask price information, it forms the basis of a stock quote. Bid Size The aggregate size in board lots of the most recent bid to buy a particular security. Black-Scholes Model A mathematical model used to calculate the theoretical price of an option. Blue Chip Stocks Stocks of leading and nationally known companies that offer a record of continuous dividend payments and other strong investment qualities. Board Lot A standard trading unit as defined in UMIR (Universal Market Integrity Rules). The board lot size of a security on Toronto Stock Exchange or TSX Venture Exchange depends on the trading price of the security, as follows: Trading price per unit is less than 0.10 - board lot size is 1,000 units Trading price per unit is 0.10 to 0.99 - board lot size is 500 units Trading price per unit is 1.00 or more - board lot size is 100 units Bonds Promissory notes issued by a corporation or government to its lenders, usually with a specified amount of interest for a specified length of time. Book An electronic record of all pending buy and sell orders for a particular stock. Booked Orders Orders that do not trade immediately upon entry. These orders are also known as outstanding orders. Bought-Deal Underwriting A type of underwriting where the brokerage firm acts as principal. The brokerage firm risks its own capital to purchase all of the securities to be issued. If the price of the securities decreases before the brokerage firm has had a chance to resell the securities to its clients, the firm absorbs the loss. British Columbia International Commercial Arbitration Centre (BCICAC) An arbitration centre established to resolve business disputes that have not been resolved through normal channels. As part of its services, the centre will accept claims up to 50,000 from clients of participating members of the Investment Dealers Association of Canada (Pacific Division) and TSX Venture Exchange. British Columbia Securities Commission (BCSC) The provincial government agency responsible for administering and enforcing the Securities Act and the Commodity Contract Act of British Columbia. Broker or Brokerage Firm A securities firm or a registered investment advisor affiliated with a firm. Brokers are the link between investors and the stock market. When acting as a broker for the purchase or sale of listed stock, the investment advisor does not own the securities but acts as an agent for the buyer and seller and charges a commission for these services. Bull Market A market in which stock prices are rising. Business Day Any day from Monday to Friday, excluding statutory holidays. Business Trust A trust that usually generates cash flows from one business or operating company, unlike an investment fund, which generates income from a diversified pool or portfolio. The trust holds debt and equity interests of an operating business. Businesses that exhibit these characteristics may opt for a trust structure over a corporate structure to take advantage of tax efficiency. Buy-In If a broker fails to deliver securities sold to another broker on the settlement date, the receiving broker may buy the securities at the current market price of the stock and charge the delivering broker the cost difference of such a purchase. Bypass Order A type of order that is filled only in a visible (lit) market. A bypass order ignores dark pools and undisplayed orders. Call Option An option which gives the holder the right, but not the obligation, to buy a fixed amount of a certain stock at a specified price within a specified time. Calls are purchased by investors who expect a price increase. Canadian Depository for Securities Limited (CDS) CDS Clearing and Depository Services Inc. (CDS) is Canadas national securities depository, clearing and settlement hub. CDS supports Canadas equity, fixed income and money markets, and is accountable for the safe custody and movement of securities, accurate record keeping, the processing of post-trade transactions, and the collection and distribution of entitlements relating to the securities that have been deposited by participants. Canadian Derivatives Clearing Corporation (CDCC) The designated central clearing corporation for options and futures trading on the Bourse de Montral. Previously known as Trans Canada Options Inc. (TCO). Canadian Investor Protection Fund (CIPF) A fund established to protect customers in the event of insolvency of a member of any of the following sponsoring self-regulatory organizations: the Bourse de Montral, Toronto Stock Exchange, TSX Venture Exchange and the Investment Dealers Association of Canada. Canadian Securities Institute (CSI) The national educational organization of the securities industry sponsored by the Investment Dealers Association of Canada, Toronto Stock Exchange, the Bourse de Montral and TSX Venture Exchange. Capital To an economist, capital means machinery, factories and inventory required to produce other products. To investors, capital means their cash plus the financial assets they have invested in securities, their home and other fixed assets. Capital Gain or Loss Profit or loss resulting from the sale of certain assets classified under the federal income tax legislation as capital assets. This includes stocks and other investments such as investment property. Capital Gains Distribution A taxable distribution out of taxable gains realized by the issuer. It is generally paid to security holders of trusts, partnerships, and funds. Like all distributions, it may be paid in securities or cash. The amount, payable date, and record date are established by the issuer. The exchange that the issue is listed on sets the ex-dividenddistribution (ex-d) date for entitlement. Capital Pool Companies The TSX Venture Exchange Capital Pool Company (CPC) program offers a unique listing opportunity that brings experienced management teams with proven public financing ability together with development-stage companies in need of capital and management expertise. Unlike traditional public companies, capital pools list and begin trading without an operating business. The nature of their business is to find and acquire a promising early-stage venture, and their treasuries are funded expressly for the search and due diligence process. Capital Stock All shares representing ownership of a company, including preferred and common shares. Capital Trust A form of financial trust that differs from other trusts in that it looks more like a fixed income instrument than an equity issue. Capital trusts are generally issued by banks or other financial intermediaries. These investment vehicles trade like a debt instrument with 1,000 face value and trade with accrued interest. The business objective of capital trusts is to acquire and hold assets that will generate net income for distribution to unit holders. The trusts assets may consist of residential mortgages, mortgage co-ownership interests, mortgage-backed securities, other eligible investments, and other qualified debt obligations. Capital trust assets are usually acquired from and serviced by the issuing institution andor its affiliates. Capitalization Change Any change in the issued and outstanding listed securities of an issuer. This change may involve the issuance, repurchase, or cancellation of listed securities or listed securities that are issuable upon conversion or exchange of other securities of an issuer. Capitalization Effective Date The date that the capitalization change is reflected in the issuers share register, regardless of when it is reported to the Exchange. Capitalization or Capital Structure Total dollar amount of all money invested in a company, such as debt, preferred and common stock, contributed surplus and retained earnings of a company. Capped Indices Indices for which there is a maximum relative weight by market capitalization for any one constituent. Any individual constituent of the index can represent no more than a specified percent of the index. The individual constituents of the SampPTSX Capped Composite and SampPTSX Capped 60 indices are capped at 10, while the individual constituents of the SampPTSX Capped sector indices are capped at 25. Cash A special term attached to an equity order that requires the trade to be settled either the same day or the following business day for cash. Cash Dividend Distribution A dividenddistribution that is paid in cash. Cash Settlement Settlement of an option contract not by delivery of the underlying shares, but by a cash payment of the difference between the strike or exercise price and the underlying settlement price. Certificate The physical document that shows ownership of a bond, stock or other security. Changes in Stock List Any modification to the list of tradable issues of an exchange. These modifications include: new listings, supplemental security listings, substitutional listings, deletions, name changes, and stock symbol changes. CL1 TSX Venture Level 1 (CL1) is a real-time service for listed junior equities that provides trades, quotes, corporate actions and index information from TSX Venture Exchange. CL2 TSX Venture Level 2 (CL2) is a real-time service for junior equities that shows all of the committed orders and trades for each TSX Venture Exchange listed security in real time. Clearing Day Any business day on which the clearing corporation is open to effect trade clearing and settlement. Clearing Number The trading number of the clearing Participating Organization or Member. Client Order An order from a retail customer of a Participating Organization. Close Price The price of the last board lot trade executed at the close of trading. See also: Board Lot. Closed-End Investment Fund An investment trust that issues a fixed number of securities that trade on a stock exchange or in the over-the-counter market. Assets of a closed-end fund are professionally managed in accordance with the funds investment objective and policies and may be invested in a wide range of financial instrumentsassets. Like other publicly traded securities, the market price of closed-end fund securities fluctuates and is determined by supply and demand in the marketplace. Closing Transaction An order to close out an existing open futures or options contract. Commission The fee charged by an investment advisor or broker for buying or selling securities as an agent on behalf of a client. Commodities Products used for commerce that are traded on a separate, authorized commodities exchange. Commodities include agricultural products and natural resources such as timber, oil and metals. Commodities are the basis for futures contracts traded on these exchanges. Common Shares or Common Stock Securities that represent part ownership in a company and generally carry voting privileges. Common shareholders may be paid dividends, but only after preferred shareholders are paid. Common shareholders are last in line after creditors, debt holders and preferred shareholders to claim any of a companys assets in the event of liquidation. Complete Fill When an order trades all of its specified volume. Conditional Listing Application (CLA) When a company applies to list on Toronto Stock Exchange, a CLA consists of the Toronto Stock Exchange listing agreement and the companys prospectus. Consolidated Short Position Report A consolidated report that includes the total shares short (as of the trade date) and the net change from the previous report, for both TSX and TSX Venture Exchange listed issues. Under UMIR rule 10.10, all TSX and TSX Venture Exchange Participating Organizations and Members must report the firms short position on a semi-monthly basis to TSX Datalinx. Non-clearing firms may report through the firm that is responsible for their clearing. Continuous Disclosure A companys ongoing obligation to inform the public of significant corporate events, both favourable and unfavourable. Convertible Security A security of an issuer (for example - bonds, debentures, or preferred shares) that may be converted into other securities of that issuer, in accordance with the terms of the conversion feature. The conversion usually occurs at the option of the holder of the securities, but it may occur at the option of the issuer. Corporation or Company A form of business organization created under provincial or federal laws that has a legal identity separate from its owners. The shareholders are the corporations owners and are liable for the debts of the corporation only up to the amount of their investment. This is known as limited liability. Cross A trade that occurs when two accounts within the same Participating OrganizationMember wish to buy and sell the same security at an agreed price and volume. With some approved exceptions, crosses can only occur within the current bid and ask for the stock. Crossing Session After the close of the regular trading day, crosses can be executed between 4:10 p.m. Dan jam 5:00 siang ET at the last sale price of the stock. Cum Dividend With dividend. The owner of shares purchased cum dividend is entitled to an upcoming already-declared dividend. The opposite of this is ex dividend. Cum Rights With rights. The owner of shares purchased cum rights is entitled to forthcoming, already-declared rights. The opposite of this is ex rights. Cum-DividendDistribution Date The trading day before the ex-dividenddistribution (ex-d) date. It is the last day on which the securities can be traded and on which the buyer is entitled to the dividenddistribution. CUSIP CUSIP copy (Committee on Uniform Security Identification Procedures) is a standard system of securities identification and securities description, which is used in electronic processing and recording of securities transactions in North America. As a service bureau to the Canadian financial industry, CDS INC. a subsidiary of CDS, acts as liaison between Standard amp Poors (SampP) and the issuing companies for the assignment of CUSIP numbers and descriptions. A CUSIP number uniquely identifies a Canadian or American security issue and its issuer. Cyclical Stock A stock of a company in an industry sector that is particularly sensitive to swings in economic conditions. Daily Price Limit The maximum price advance or decline permitted for a futures contract in one trading session compared to the previous days settlement price. Day Order An order that is valid only for the day it is entered. If the order is still outstanding when the market closes, it will be purged overnight. Debenture A long-term debt instrument issued by corporations or governments that is backed only by the integrity of the borrower, not by collateral. A debenture is unsecured and subordinate to secured debt. A debenture is unsecured in that there are no liens or pledges on specific assets. Debt Price The price paid per 100 of a debt instruments face value traded. A debt instrument trading at par would have a price of 100. A price below face value (for example, 99.1) indicates that the debt instrument has traded at a discount. A price above face value (for example, 101.1) indicates that the debt instrument has traded at a premium. Debt Value The total dollar value of volume traded on one side of the transaction for a specified period. It equals price multiplied by volume divided by 100. Debt Volume The number of debt instruments traded on one side of the transaction for a specified period multiplied by the face value of the debt instrument. Defensive Stock A stock purchased from a company that has maintained a record of stable earnings and continuous dividend payments through periods of economic downturn. Delayed Delivery Order A special term order in which there is a clear understanding between the buying and selling parties that the delivery of the securities will be delayed beyond the usual three-day settlement period to the date specified in the order. Delist The removal of a securitys listing on a stock exchange. This is done when the security no longer exists, the company is bankrupt, the public distribution of the security has dropped to an unacceptably low level, or the company has failed to comply with the terms of its listing agreement. Delisted Issue The status of a security that is no longer listed on the Exchange. The security could trade on another market. Delisted Issuer An issuer whose securities are no longer listed on Toronto Stock Exchange or TSX Venture Exchange. A listed issuer is delisted when the last listed security of the issuer is delisted. Delivery The tender and receipt of the underlying commodity or the payment or receipt of cash in the settlement of an open futures contract. Delivery Month The calendar month in which a futures contract may be satisfied by making or taking delivery. Delta A ratio that measures an options price movement compared to the underlying interests price movement. Delta values have a range of 0 to 1. Deep in-the-money options have deltas that approach 1. Demand The combined desire, ability and willingness on the part of consumers to buy goods or services. Demand is determined by income and by price, which are, in part, determined by supply. Discretionary Account A securities account created when a client gives a partner, director or qualified portfolio manager of a Participating Organization specific written authorization to select securities and execute trades on the clients behalf. Distribution The portion of the issuers equity paid directly to the security holders. It is generally paid to security holders of trusts, partnerships, and funds. The issuer or its representative provides the amount, frequency (monthly, quarterly, semi-annually, or annually), payable date, and record date. The exchange that the issue is listed on sets the ex-dividenddistribution (ex-d) date for entitlement. Diversification Limiting investment risk by purchasing different types of securities from different companies representing different sectors of the economy. Dividend The portion of the issuers equity paid directly to shareholders. It is generally paid on common or preferred shares. The issuer or its representative provides the amount, frequency (monthly, quarterly, semi-annually, or annually), payable date, and record date. The exchange that the issue is listed on sets the ex-dividenddistribution (ex-d) date for entitlement. An issuer is under no legal obligation to pay either preferred or common dividends. Dividend Reinvestment Plan A means of reinvesting dividends, which would otherwise be paid to the shareholder in cash, in additional stock of the company. Dividend Yield Equal to the indicated annual dividend rate per share divided by the securitys price. For example, if the indicated dividend rate is 1.00 and the closing price is 50.00, 1 divided by 50.00 equals 2. DividendDistribution Payable Date The date set by the issuer on which the dividenddistribution will be paid. DividendDistribution Record Date The date on which a security holder must be registered as a holder of an issue to receive the dividenddistribution. Dollar Cost Averaging Investing a fixed amount of dollars in a specific security at regular set intervals over a period of time. Dollar cost averaging results in a lower average cost per share, compared with purchasing a constant number of shares at set intervals. The investor buys more shares when the price is low and buys fewer shares when the price is high. Dow Jones Industrial Average (DJIA) An average made up of 30 actively traded stocks. The DJIA is calculated by adding the prices of each of the 30 stocks and dividing by a divisor. The DJIA is one of the most widely quoted stock market averages in the media. Downtick A trade is on a downtick when the last trade occurred at a price lower than the previous one. Energy or Royalty Trust Investment vehicles that may engage in the development, acquisition, andor production of oil and gas reserves. The trust receives royalty income from producing properties (essentially, net cash flow) and then sells interests in the trust (called trust units) to investors. Conventional oil and gas royalty trusts are actively managed portfolios holding assets of mature producing properties. Substantially all of the cash flow generated by the oil and gas assets, net of certain deductions, such as administrative expenses and management fees, is passed on to the unit holders as royalty income. Capital expenses may also be deducted, but are usually subject to restrictions on the amount. The distributions are highly dependent upon the cash flow generated by the trust. In general, the largest variable in determining the level of cash flow is the price of crude oil and natural gas. Royalty trusts provide an alternative (from owning the shares of individual companies) for investors to participate in the oil and gas sector. Equities Common and preferred stocks, which represent a share in the ownership of a company. Equity Financing The dollar value of securities issued in accordance with a TSX or TSX Venture Exchange approved transaction. The value equals the number of securities multiplied by the offering price. The various forms of financial instruments may have an effect on determining the price or the number of securities. Equity Option An option contract that grants the holder the right to buy or sell a specific number of shares of stock at a specified price during a specific period of time. Equity Price The price per share traded. Equity Value The total dollar value of volume traded on one side of the transaction for a specified period. It equals price multiplied by volume. Equity Volume The total number of shares traded on one side of the transaction. Escrowed Securities The outstanding securities of an issuer that are not freely tradable, because they are subject to an escrow agreement that restricts the ability of certain security holders of that issuer from trading or otherwise dealing in those securities until certain conditions are satisfied. European-Style Option Options that can be exercised only on their expiration date. Ex Dividend The holder of shares purchased ex dividend is not entitled to an upcoming already-declared dividend, but is entitled to future dividends. Ex Right The holder of shares purchased ex rights is not entitled to already-declared rights, but is entitled to future rights issues. Exchange Offering Prospectus (EOP) A form of prospectus that allows a company to conduct a prospectus offering through the facilities of a stock exchange, rather than issuing them directly to the public. The company then applies to list the securities on the exchange. Exchangeable Security A security of an issuer that is exchangeable for securities of another issuer (usually a subsidiary) in accordance with the terms of the exchange feature. The exchange may be at the option of the holder or at the option of the issuer of the securities. Exchange-Traded Fund (ETF) A special type of financial trust that allows an investor to buy an entire basket of stocks through a single security, which tracks and matches the returns of a stock market index. ETFs are considered to be a special type of index mutual fund, but they are listed on an exchange and trade like a stock. Also known as an index participation unit (IPU). Ex-D Date Ex-dividenddistribution date. The date that the buyer of a stock is not entitled to the upcoming declared dividenddistribution, because the buyer will not be a holder of record. The ex-d date is two clearing days before the record date. The exchange that the issue is listed on sets the ex-d date. Exempt Issuer A listed issuer that has satisfied listing requirements as outlined in Section 502 of the Listing Requirements Manual. An exempt issuer is not subject to special reporting rules. This status is generally reserved for senior listed issuers. Exercise The act of an option holder who chooses to take delivery (calls) or make delivery (puts) of the underlying interest against payment of the exercise price. Expiration Date The date at which an option contract expires. This means that the option cant be exercised after that date. Extra Dividend Distribution A dividenddistribution paid in addition to the regularly established dividenddistribution of the issuer. Like all dividendsdistributions, it may be paid in securities or cash and the amount, payable date, and record date are established by the issuer. The exchange that the issue is listed on sets the ex-dividenddistribution (ex-d) date for entitlement. Extra dividendsdistributions are sometimes referred to as special dividendsdistributions. Face Value The cash denomination of the individual debt instrument. It is the amount of money that the holder of a debt instrument receives back from the issuer on the debt instruments maturity date. Face value is also referred to as par value or principal. Filing Statement A disclosure document submitted by a listed company to outline material changes in its affairs. Filing statements are not used for the purposes of a financing. Fill or Kill (FOK) Order Is eligible to receive a full fill and if not fully filled is cancelled immediately. Float Quoted Market Value (QMV) The last price multiplied by the number of outstanding shares. For the SPTSX index, the QMV is based on float shares, not on total outstanding shares. Float shares are total outstanding shares less any control block position, as defined by the Standard Poors index methodology. Floating Rate Security A security whose interest rate or dividend changes with specified market indicators. A floating rate is one that is based on an administered rate, such as a prime rate. Flow-Through Shares Financing The dollar value of flow-through shares issued in accordance with a TSX or TSX Venture Exchange approved transaction. The price is determined by the policies of the TSX Company Manual or TSX Venture Corporate Finance Manual the price is not adjusted for the value of the flow-through tax benefit available to the security holder. It can be an initial public offering (IPO), secondary offering, or private placement. Freeze An interruption in trading on a stock, triggered when an order violates parameters set by TSX. Frequency Frequency refers to the given time period on an intraday, daily, weekly, monthly, quarterly or yearly perspective. Typically, choosing a weekly or monthly perspective when looking at several years of data makes it easier to identify long-term trends. Daily charts are useful for active traders and short-term time period charts. The Daily, 1-Minute, 5-Minute, 15-Minute and Hourly frequency are used for intraday charts and the remaining choices are applicable to end-of-day charts. This term refers to a TSX Group Historical Performance charting feature. Front Month The closest month to expiration for a futures or option contract. Futures Contracts to buy or sell securities at a future date. GICS The Global Industry Classification Standard (GICS) is a consistent set of global economic sector and industry definitions. GICS are used to classify the constituents of many indices worldwide. GICS is a four-level classification system. The four levels are: sector, industry group, industry, and sub-industry. Standard Poors and Morgan Stanley Capital International (MSCI), two providers of global indices, jointly launched GICS in 1999. Good Delivery The term used to describe a security that is in proper form to transfer title, which means that the registered owner has endorsed it. To settle a sale, the certificate must be surrendered on good delivery by the seller. A certificate that bears a share transfer restriction will not constitute good delivery. Good-Till-Cancelled (GTC) Order A GTC order will remain in the system until the date that it is filled or until a maximum of 90 calendar days from date of entry, whichever happens first. This type of order is also referred to as an open order. A Participating Organization can cancel a GTC order at any time. Good-Till-Date (GTD) Order A GTD order will remain in the system until it is either filled or until the date specified, at which time it is automatically cancelled by the system. This is another kind of open order. A Participating Organization can cancel a GTD order at any time. Growth Stock The shares of companies that have enjoyed better-than-average growth over recent years and are expected to continue their climb. Guaranteed Investment Certificate (GIC) A deposit instrument most commonly available from trust companies or banks requiring a minimum investment at a predetermined rate of interest for a stated term, such as one or five years. GICs are generally non-redeemable and non-transferable before maturity. Halted Issue A temporary stoppage of trading of the listed securities of an issuer, which may be imposed by the Exchange, its agent (Market Regulation Services Inc. (RS)), or voluntarily requested by the issuer. Usually an issuers listed securities are halted pending a public announcement of material information about the issuer, but the Exchange or RS may also impose a halt if the issuer is not in compliance with Exchange requirements or if the Exchange determines that it is in the public interest to do so. Hedge A strategy used to limit investment loss by making a transaction that offsets an existing position. HSDF High Speed Data Feed is a real-time broadcast of market data related to Toronto Stock Exchange and TSX Venture Exchange markets. High Price The highest price at which a board lot trade on a security was executed during a trading session. See also: Board Lot. Improving the Market An order that either raises the bid price or lowers the offering price is said to be improving the market. The market improves because the spread between the bid and offer decreases. Income Deposit Security (IDS) An exchange-traded, fixed income-like instrument consisting of a subordinated debt security and a share of common stock packaged together to form a tax-efficient delivery mechanism to distribute an issuers free cash flow to its investors. Investors are paid dividends from the common share component and interest from the subordinated debt. The structure was created for U.S.-based companies to replicate the economic attributes of the Canadian income trust structure - providing steady, high-yield returns to U.S. and Canadian investors in U.S. companies. IDSs do not use the trust structure. Also known as income participating securities (IPS). Income Participating Security (IPS) See Income Deposit Security (IDS). Income Stock A security with a solid record of dividend payments and which offers a dividend yield higher than the average common stock. Income Trust Also called income funds. Income trusts are trusts structured to own debt and equity of an underlying entity, which carries on an active business, or has royalty revenues generated by the assets of an active business. By owning securities or assets of an underlying business, an income trust is structured to distribute cash flows, typically on a monthly basis, from those businesses to unit holders in a tax-efficient manner. The trust structure is typically utilized by mature, stable, sustainable, cash-generating businesses that require a limited amount of maintenance capital expenditures. An income trust is an exchange-traded equity investment that is similar to a common share. There are four categories of income trusts: business trusts real estate investment trusts (REITs) energy trusts and power, pipeline, and utility trusts. Index A statistical measure of the state of the stock market, based on the performance of stocks. Examples are the SampPTSX Composite Index and the SampPTSX Venture Composite Index. Index Participation Unit (IPU) See Exchange-Traded Fund (ETF). Indicated Annual DividendDistribution For an issue with a committed dividenddistribution policy, the indicated annual dividenddistribution (IAD) equals the most recent dividenddistribution multiplied by the payment frequency. For example, if an issuer pays 0.04 quarterly, then the indicated rate is 0.04 X 4 or 0.16. In the case of issuers with no committed policy, the IAD is obtained by adding the dividenddistribution amounts paid in the last 12-month period. Indicated annual dividenddistribution is also referred to as indicated rate. Indicative Calculated Closing Price (ICCP) A feature of Market On Close (MOC), a TSX electronic call market facility, the Indicative Calculated Closing Price (ICCP) provides a preliminary indication of what the calculated closing price for a MOC security would be assuming the regular trading session had ended at the time of calculation. The ICCP is calculated without reference to volatility parameters. The ICCP for each MOC security will be broadcast to the trading community at 3:50 PM ET on each trading day, 10 minutes prior to the actual Market On Close execution. A key objective of broadcasting the ICCP is to provide market participants with an early indication of potentially large price movements at the close. The ICCP for all MOC securities will be included in the MOC Imbalance Report that is made available on tmxmoney. Inflation An overall increase in prices for goods and services, usually measured by the percentage change in the Consumer Price Index. Initial Public Offering (IPO) A companys first issue of shares to the general public. Inside Information Non-public information pertaining to the business affairs of a corporation that could affect the companys share price should the information be made public. Insider All directors and senior officers of a company, and those who are presumed to have access to inside information concerning the company. An insider is also anyone owning more than 10 of the voting shares of a company. Insider Trading There are two types of insider trading. The first type occurs when insiders trade in the stock of their company. Insiders must report these transactions to the appropriate securities commissions. The other type of insider trading is when anyone trades securities based on material information that is not public knowledge. This type of insider trading is illegal. Interlisted For TSX reporting purposes, interlisted is defined as any issue listed on TSX or TSX Venture Exchange and also listed on a U.S. exchange or NASDAQ. Intermarket Surveillance Group (ISG) An international committee comprised of members from 31 exchanges around the world, including every major stock exchange. Membership in the ISG allows all members to share surveillance and investigative information to ensure that each regulator has access to the necessary information to effectively regulate its marketplace. The ISG promotes effective market surveillance among international exchanges and RS involvement helps ensure they are continually in touch with other regulators and part of the development of international best practices. International Securities Identification Number (ISIN) The international standard that is used to uniquely identify securities. It consists of a two-character alphabetic country code specified in ISO 6166, followed by a nine-character alphanumeric security identifier (assigned by a national security numbering agency), and then an ISIN check-digit. Intrinsic Value The difference between the current market value of the underlying interest and the strike price of an option. In-the-money is a term used when the intrinsic value is positive. Investment The purchase or ownership of a security in order to earn income, capital or both. Investments may also include artwork, antiques and real estate. Investment Advisor A person employed by an investment dealer who provides investment advice to clients and executes trades on their behalf in securities and other investment products. Investment Capital Initial investment capital necessary for starting a business. Investment capital usually consists of inventory, equipment, pre-opening expenses and leaseholds. Investment Counsellor A specialist in the investment industry paid by fee to provide advice and research to investors with large accounts. Investment Dealer Securities firms that employ investment advisors to work with retail and institutional clients. Investment dealers have underwriting, trading and research departments. Investment Dealers Association of Canada (IDA) The national self-regulatory organization of the securities industry. The Associations role is to foster efficient capital markets by encouraging participation in the savings and investment process and by ensuring the integrity of the marketplace. Investment Fund A closed-end fund that offers investors the ability to buy a security that represents a portfolio of investments with a specific investment strategy. These products use funds raised through a public offering to invest in a portfolio of securities, which are actively managed to create income streams for investors, typically through a combination of dividends, capital gains, interest payments, and in some cases, income from derivative investment strategies. These funds are not directly related to an operating business. Some examples are: funds of income funds, senior loan funds, mortgage-backed security funds, and commodity funds. Investor Relations A corporate function, combining finance, marketing and communications, to provide investors with accurate information about a companys performance and prospects. IPO Financing The dollar value of initial public offering (IPO) securities issued in accordance with a TSX or TSX Venture Exchange approved transaction. It is the stated prospectus price multiplied by the number of securities issued under the IPO plus the over allotment. Issue Any of a companys securities or the act of distributing the securities. Issued shares refer to the portion of a companys shares that have been issued for sale. A company does not have to issue the total number of its authorized shares. Issue Status The trading status of a class or series of an issuers listed securities, such that a class or series of listed securities of an issuer may be halted, suspended, or delisted from trading. Issued and Outstanding Securities Commonly refers to the situation where the number of issued securities equals the number of outstanding securities. However, under certain corporate statutes in Canada, an issuer may have issued securities and then repurchased those securities without cancelling them. In that case, the securities are issued but are not outstanding. As a result, the number of issued securities does not equal the number of outstanding securities. Issuer Status The trading status of a listed or formerly listed issuer. Issuer status types include: delisted, listed, suspended, and trading. Jitney Order The execution and clearing of orders by one member of a stock exchange for the account of another member. For example, investment dealer A is a small firm whose volume of business is not sufficient to maintain a trader on the exchange. Instead, investment dealer A gives its orders to investment dealer B, a larger organization which is a member of the exchange, for execution. Investment dealer A pays a reduced percentage of the normal commission. Junior Corporation A young company in the early stages of operations and growth. Last Sale Price For a Market On Close (MOC)-eligible security, the last sale price equals the calculated closing price. If the MOC closing price acceptance parameters are exceeded, it equals the last board lot sale price of the security on the exchange in the regular trading session. For any other listed security, the last sale price equals the last board lot sale price of the security on the exchange, in the regular trading session. Last Trading Day The last day on which a futures or option contract may be traded. Liabilities The debts and obligations of a company or an individual. Current liabilities are debts due and payable within one year. Long-term liabilities are those payable after one year. Liabilities are found on a companys balance sheet or an individuals net worth statement. Limit Order An order to buy or sell stock at a specified price. The order can be executed only at the specified price or better. A limit order sets the maximum price the client is willing to pay as a buyer, and the minimum price they are willing to accept as a seller. Liquidating Order An order to close out an existing open futures or options contract. A liquidating order involves the sale of a contract that has been purchased or purchase of a contract that has been sold. Liquidity This refers to how easily securities can be bought or sold in the market. A security is liquid when there are enough units outstanding for large transactions to occur without a substantial change in price. Liquidity is one of the most important characteristics of a good market. Liquidity also refers to how easily investors can convert their securities into cash and to a corporations cash position, which is how much the value of the corporations current assets exceeds current liabilities. Listed Issuer An issuer that has at least one class of securities listed on Toronto Stock Exchange or TSX Venture Exchange. Listed Stock Shares of an issuer that are traded on a stock exchange. Issuers pay fees to the exchange to be listed and must abide by the rules and regulations set out by the exchange to maintain listing privileges. Listing Application The document that an issuer completes and submits to an exchange when it applies to list its shares on the exchange. The issuer must disclose its activities, plans, management and finances in the application. Long A term that refers to ownership of securities. For example, if you are long 100 shares of XYZ, this means that you own 100 shares of XYZ company. Low Price The lowest price at which a board lot trade was executed during a period of time. See also: Board Lot. Margin Account A client account that uses credit from the investment dealer to buy a security. A client needs to deposit a margin amount with the balance advanced by the investment dealer against collateral such as investments. The investment dealer can make a margin call, which means the client must deposit more money or securities if the value of the account falls below a certain level. If the client does not meet the margin call, the dealer can sell the securities in the margin account at a possible loss to cover the balance owed. The investment dealer also charges the client interest on the money borrowed to buy the securities. Market The place where buyers and sellers meet to exchange goods and services. It also represents the actual or potential demand for a product or service. Market Capitalization The number of issued and outstanding securities listed for trading for an individual issue multiplied by the board lot trading price. Should a trading price not be available, a bid price, a price on another market, or if applicable, the price for an issue of the same issuer which the first issue is convertible into, may be used. Total market capitalization for a market is obtained by adding together all individual issue market capitalizations (warrants and rights excluded). Escrowed shares are excluded from TSX Venture market capitalization. Market Maker A trader employed by a securities firm who is required to maintain reasonable liquidity in securities markets by making firm bids or offers for one or more designated securities up to a specified minimum guaranteed fill. Market makers for the stock of issuers listed on Toronto Stock Exchange are referred to as Registered Traders. Market On Close (MOC) A TSX electronic call market facility, which establishes the closing price for certain TSX-listed securities. MOC accepts confidential market orders from before the open and throughout the trading session, maintaining them in time priority. Twenty minutes before the close of the trading session, MOC publicly broadcasts an imbalance of buy and sell MOC market orders and asks for limit MOC orders to offset the imbalance. Ten minutes before the close of the trading session, MOC publicly broadcasts an Indicative Calculated Closing Price (ICCP) that provides market participants with an indication of what the calculated closing price would be assuming the regular trading session had ended at that time (see Indicative Calculated Closing Price for more details). At the close, MOC matches orders, from the MOC and continuous market books, at a calculated closing price (which assures the most matches closest to the last sale price), and allocates the fills according to price and time priority. Market Order An order to buy or sell stock immediately at the best current price. Market-by-Price A real-time data feed that puts the order book directly on the customers screen. This information product shows the committed, tradable volume of the top 5 bids and asks for each Toronto Stock Exchange or TSX Venture Exchange-listed stock. Material Change A change in an issuers affairs that could have a significant effect on the market value of its securities, such as a change in the nature of the business or control of the issuer. Under the principle of continuous disclosure, a listed issuer must issue a news release and report to the applicable self-regulatory organization as soon as a material change occurs. Member See Participating Organizations (POs) and Members Minimum Fill Order A special term order with a minimum fill condition will only begin to trade if its first fill has the required minimum number of shares. For example, an order to buy 5,000 shares with a minimum volume of 2,000 shares can only trade if 2,000 or more shares become available. Minimum Guaranteed Fill (MGF) Orders These orders are guaranteed a complete fill upon entry. A Registered Trader will provide the stock should the book be below the required limit. To be eligible for MGF, an order has to be a tradable client order with a volume less than or equal to the MGF size, which varies from stock to stock. Minimum Price Fluctuation The minimum price change or tick on a futures contract. Mixed Lot or Broken Lot An order with a volume that combines any number of board lots and an odd lot. Money Market Part of the capital market established to buy and sell short-term financial obligations. These include federal government treasury bills, short-term Government of Canada bonds, commercial paper, bankers acceptances and guaranteed investment certificates. Longer-term securities are also traded in the money market when their term shortens to three years. Multijurisdictional Disclosure System (MJDS) A disclosure system that facilitates certain Canadian-U.S. cross-border securities offerings, issuer bids and takeover bids. It is intended to reduce costly duplication of disclosure requirements and other filings when issuers from one country register securities offerings in the other. Under the rules, eligible cross-border offerings are governed by the disclosure requirements of the issuers home country. Must-Be-Filled (MBF) Order Orders placed before the market opens to buy or sell shares of stocks when their options expire. These orders are guaranteed a complete fill at the opening price to offset expiring options. They must be ordered between 4:15 p.m. Dan jam 5:00 siang on the Thursday before the third Friday of each month. Mutual Fund A fund managed by an expert who invests in stocks, bonds, options, money market instruments or other securities. Mutual fund units can be purchased through brokers or, in some cases, directly from the mutual fund company. Naked Writer A seller of an option contract who does not own a position in the underlying security. Net Change The difference between the previous days closing price and the last traded price. Net Worth The difference between a companys or individuals total assets and its total liabilities. Also known as shareholders equity for a company. New Issue A stock or bond issue sold by a company for the first time. Proceeds may be used to retire the companys outstanding securities, or be used for a new plant, equipment or additional working capital. New debt issues are also offered by governments. New Issuer Listing Occurs concurrently with the posting of the new issuers securities for trading. The preconditions for listing include the acceptance by the Exchange that all listing requirements and conditions have been satisfied. The effective listing date is the date when the listed securities open for trading. New Issuer Listing - Application An issuer whose application for listing was based on the TSX listing application or the TSX Venture Exchange listing application form. These applications in themselves provide prospectus-level disclosure however, often the listing application is accompanied by an offering document or a prospectus. New Issuer Listing - Graduate An issuer, previously listed on TSX Venture Exchange (including NEX), that applied for and was approved for listing on TSX. The issuers security would be delisted from TSX Venture Exchange and listed on TSX at the same time, permitting continuous listing of the securities on contiguous exchanges. New Issuer Listing - IPO (Initial Public Offering) An IPO (initial public offering) is an issuers first offering of its securities made to the public in accordance with a prospectus. The offering is often made in conjunction with an issuers initial application for listing on an exchange. New Issuer Listing - Plan of Arrangement An issuer listing as a result of a plan of arrangement. A plan of arrangement is a form of corporate reorganization that must be approved by a court and by the corporations shareholders or others affected by the proposed arrangement, all as prescribed by corporate legislation. A plan of arrangement can take various forms, including: An amalgamation of two or more corporations A division of the business of the corporation A transfer of all or substantially all of the property of the corporation to another corporation An exchange of securities of the corporation held by security holders of the corporation for other securities, money, or other property that is not a takeover bid A liquidation or dissolution of the corporation A compromise between the corporation and its creditors or holders of its debt Any combination of the foregoing. New Issuer Listing - Spin-Off A reorganization that usually results in a newly listed issuer acquiring a business division or assets as its principal operating asset from another issuer (the reorganized issuer), with security holders of the reorganized issuer holding securities in both issuers, following completion of the reorganization. New Issuer Listing - Transfer An issuer previously listed on TSX that applied for and was approved for listing on TSX Venture Exchange. The issuers security would be delisted from TSX and listed on TSX Venture Exchange at the same time, permitting continuous listing of the securities on contiguous exchanges. New Listing A security issue that is newly added to the list of tradable security issues of an exchange. It is accompanied with a new listing date. NEX A separate board of TSX Venture Exchange. NEX was launched by TSX Group, effective August 18, 2003, to trade as an open, continuous auction market, on the same TSX Venture trading engine, and to be governed by identical trading rules. NEX provides a trading forum for issuers that have fallen below TSX Ventures continuing listing requirements. They are identified with an extension of H added to their stock symbol. Non-Certificated Issues An issue that is recorded on the transfer agents electronic book rather than being held as a physical note. Non-Client Order An order from a Participating Organization or an order a firm is executing on behalf of an institution, such as a mutual fund. An N denotes a non-client order in the book. Non-Exempt Issuer A listed issuer that is subject to special reporting rules. Non-Net Order A special-term order when there is a clear understanding between the buying and selling parties that they will settle the trade directly with each other. Non-Resident Order A special term order when one or more participants in the trade is not a Canadian resident. North American Industry Classification System (NAICS) A system for classifying business establishments. It was developed by the Economic Classification Policy Committee (ECPC) on behalf of the U.S. Office of Management and Budget (OMB), in cooperation with Statistics Canada and Mexicos Instituto Nacional de Estadistica, Geografia e Informatica (INEGI) to provide comparable statistics across the three countries. Launched in 1997, it is the replacement for the 1987 Standard Industrial Classification (SIC) codes. Odd Lot A number of shares that are less than a board lot, which is the regular trading unit decided upon by the particular stock exchange. An odd lot is also an amount that is less than the par value of one trading unit on the over-the-counter market. For example, if a board lot is 100 shares, an odd lot would be 99 or fewer shares. Offset To liquidate or close out an open futures or option contract. One-Sided Market A market that has only buy orders or only sell orders booked for a particular security. On-Stop (OS) Order A special-term order placed with the intention of trading at a later date when the price of the stock reaches the specified stop price. An on-stop order becomes a limit order once a trade at the trigger price has occurred. Ontario Securities Commission The government agency that administers the Securities Act (Ontario) and the Commodity Futures Act (Ontario) and regulates securities and listed futures contract transactions in Ontario. Open Interest The net open positions of a futures or option contract. Open Order An order that remains in the system for more than a day. See Good-Till-Cancelled or Good-Till-Date . Open-End Investment Fund An investment fund that continuously offers its securities to investors and stands ready to redeem its securities at all times. Transactions in sharesunits of mutual funds are based on their net asset value (NAV), determined at the close of each business day. Examples of an open-end fund are traditional mutual funds and exchange-traded funds (ETFs). Opening The market opens at 9:30 a.m. ET each business day. Option The right, but not the obligation, to buy or sell certain securities at a specified price within a specified time. A put option gives the holder the right to sell the security, and a call option gives the holder the right to buy the security. Option Class All options of the same type, either calls or puts, that have the same underlying security. Option Cycle A set pattern of months when a class of options expires. Option Holder The buyer of an option contract who has the right to exercise the option during its lifetime. Option Series An individual option contract for a given security. Option Type A call or put contract. Option Writer The seller of an option contract who may be required to deliver (call option) or to purchase (put option) the underlying interest covered by the option, before the contract expires. Order Number An eight or nine-digit number assigned to every order entered into the system. Original ListingInitial Listing A listing is designated as an original listing on TSX or initial listing on TSX Venture Exchange, if it satisfies the following three conditions: It meets listing requirements. It pays applicable listing fees. It is described in the exchange bulletin as an original listing by TSX or a new listing by TSX Venture Exchange. Typical examples of originalinitial listings include: An initial public offering (IPO) Transfer from another exchange A new entity created by a spin-off (such as a division, from an existing issuer, becoming its own publicly traded entity) OTC Foreign Trading OTC (over-the-counter) foreign trading refers to UMIR Rule 6.4 (e), which permits a trade to be executed off the Exchange, if one or both Participating OrganizationMember client accounts are outside of Canada, provided such trades are reported within a specific time frame to the Exchange for public dissemination of the transaction. Over-The-Counter (OTC) Market The market maintained by securities dealers for issues not listed on a stock exchange. Almost all bonds and debentures, as well as some stocks, are traded over-the-counter in Canada. An OTC market is also known as an unlisted market. Par Value A securitys nominal face value. Partial Fill An order receives a partial fill when it trades only part of its total committed volume. Participating Organizations (POs) and Members of TSX Firms that are entitled to trade through the facilities of TSX. However, only POs are also involved in all aspects of the securities business, including underwriting new issues and other financings, and assisting companies in the initial public offering (IPO) process. Participating Organizations (POs) and Members of TSX Venture Exchange Firms entitled to trade through the facilities of TSX Venture Exchange. However, only POs of TSX and Members of TSX Venture Exchange are permitted to act as sponsors for listed issuers or issuers proposing to be listed on TSX Venture Exchange. Penny Stock Low-priced speculative issues of stock selling at less than 1.00 a share. Portfolio Holdings of securities by an individual or institution. A portfolio may include various types of securities representing different companies and industry sectors. Position Limit The maximum number of futures or options contracts any individual or group of people acting together may hold at one time. Power, Pipeline Utility Trusts A type of income trust. They are investment vehicles that have underlying businesses that are utilities, power generation companies, or pipeline companies. Preferred Share A class of share capital that entitles the owner to a fixed dividend ahead of the issuers common shares and to a stated dollar value per share in the event of liquidation. It usually does not have voting rights, unless a stated number of dividends have been omitted. Premium An option contracts price. Pre-Opening Session A session from 7:00 a.m. to 9:30 a.m. (ET) when orders can be entered into the Toronto Stock Exchanges systems. Tradable orders will be queued until after 9:30 a.m. when the market opens. Price-Earnings (PE) Ratio A common stocks last closing market price per share divided by the latest reported 12-month earnings per share. This ratio shows you how many times the actual or anticipated annual earnings a stock is trading at. Principal Trade A trade when a Participating Organization is either buying from, or selling to its client. Priority If there are several orders competing for a stock at the same price, a priority determines when one of these orders will be filled before any other at this price. Priority is based on the time at which the order is received into the system. Private Placement The private offering of a security to a small group of buyers. Resale of the security is limited. See Best Efforts and Bought Deal Underwriting . Private Placement Financing The dollar value of privately placed securities issued in accordance with a TSX or TSX Venture Exchange approved transaction. The price is determined in accordance with the policies of the TSX Company Manual or TSX Venture Corporate Finance Manual. The number of securities is the actual number issued. The composition of the financing could take the form of units comprised of multiple securities. Professional and Equivalent Real-Time Data Subscriptions The total number of professional accesses to real-time products of TSX and TSX Venture Exchange, as well as non-professional accesses that are priced the same or at a minimal discount to the professional access rate for the same product. Profit What is left over for the owners of a business after all expenses have been deducted from revenues. Gross profit is the profit before corporate income taxes. Net profit is the final profit of the business after taxes have been paid. Prospectus A legal document describing securities being offered for sale to the public. It must be prepared in accordance with provincial securities commission regulations. Prospectus documents usually disclose pertinent information concerning the companys operations, securities, management and purpose of the offering. Push-Out A push-out occurs during a stock split when new shares are forwarded to the registered holders of old share certificates, without the holders having to surrender the old shares. Both the old and new shares have equal value. Put Option A put option is a contract that gives the holder the right to sell a specified number of shares at a stated price within a fixed time period. Put options are purchased by those who think a stock may decline in price. Quoted Market Value (QMV) See Market Capitalization . Rally A brisk rise in the general price level of the market or price of a stock. Real Estate Investment Trust (REIT) Typically, a closed-end investment fund that trades on an exchange and uses the pooled capital of many investors to purchase and manage income properties. Equity REITs primarily own commercial real estate, such as shopping centres, apartments, and industrial buildings. By taking advantage of the trust structure, REITs offer tax advantages (beyond traditional common equity investments) to investors and provide a liquid way to invest in real estate, which otherwise is an illiquid market. Record Date See DividendDistribution Record Date . Redeemable Security A security that carries a condition giving the issuer a right to call in and retire that security at a certain price and for a certain period of time. Registered Traders A trader employed by a securities firm who is required to maintain reasonable liquidity in securities markets by making firm bids or offers for one or more designated securities up to a specified minimum guaranteed fill. Relative Position Report A TSX report that ranks each Participating OrganizationsMembers trading activity relative to the total market and the other POsMembers. It is produced monthly for each TSX Group POMember. Responsible Registered Trader The Registered Trader assigned by the Selection Committee to act as market maker in a security. Their duties include providing a minimum guaranteed fill, maintaining minimum spread and ensuring orderly trading. Retractable Security A security that features an option for the holder to require the issuer to redeem it, subject to specified terms and conditions. Revenue The total amount of funds generated by a business. Reverse Takeover (RTO)Backdoor Listing A transaction or series of transactions that includes a securities issuance made by a listed issuer to parties vending securities or other assets into the listed issuer (the new securitys holders), such that after completion of the transaction(s), the new securitys holders will own more than 50 of the outstanding voting securities of the listed issuer, with an accompanying change of control of the listed issuer. A reverse takeover (RTO)backdoor listing can be completed through various transactions, including a business or asset acquisition, an amalgamation, a plan of arrangement, or other form of reorganization. The listing of securities of an issuer formed in accordance with an RTObackdoor listing is treated as a new listing. Rights A temporary privilege that lets shareholders purchase additional shares directly from the issuer at a stated price. The price is usually less than the market price of the common shares on the day the rights are issued. The rights are only valid within a given time period. Risk The future chance or probability of loss. SampPTSX 60 Capped Index Includes all of the constituents of the SampPTSX 60 Index. The relative weight by market capitalization of any single index constituent is capped at 10. SampPTSX 60 Index An index of large, liquid, Canadian issuers listed on Toronto Stock Exchange. It is market capitalization weighted, with weights adjusted for available share float, and includes securities of 60 issuers balanced across ten economic sectors. Inclusion in the SampPTSX Composite is a prerequisite to inclusion in the SampPTSX 60 Index. SampPTSX Capped Composite Index Includes all of the constituents of the SPTSX Composite Index. The relative weight by market capitalization of any single index constituent is capped at 10. SampPTSX Composite Index Comprises the majority of market capitalization for Canadian-based, Toronto Stock Exchange listed companies. It is the leading benchmark used to measure the price performance of the broad, Canadian, senior equity market. It was formerly known as the TSE 300 Composite Index. SampPTSX MidCap Index An index of mid-sized Canadian issuers that have been included in the SampPTSX Composite Index but are not members of the SampPTSX 60 Index. It is market capitalization weighted, with weights adjusted for available share float, and includes securities of 60 issuers balanced across ten economic sectors. SampPTSX SmallCap Index An index of smaller Canadian issuers that are included in the SampPTSX Composite Index, but have not been added to the SampPTSX 60 Index or the SampPTSX MidCap Index. When a new issuer qualifies to be included in the SampPTSX Composite, it is automatically added to the SampPTSX SmallCap Index. This index does not have a fixed number of constituents. SampPTSX Venture Composite Index Launched December 10, 2001, it is the leading benchmark used to measure the price performance of the Canadian public venture capital equity market. Seat The traditional term for membership on a stock exchange. An investment dealer or brokerage buys a seat on the exchange and one employee is designated as the seat holder. As Toronto Stock Exchange is now demutualized, there are no longer seats on the exchange. Secondary Offering Financing The dollar value of secondary offering securities issued in accordance with a TSX or TSX Venture Exchange approved transaction. It is the stated prospectus price multiplied by the number of securities issued under the offering plus the over allotment. Securities Transferable certificates of ownership of investment products such as notes, bonds, stocks, futures contracts and options. Securities and Exchange Commission (SEC) The federal regulatory body for interstate securities transactions in the United States. Securities Commission Each province has a securities commission or administrator that oversees the provincial securities act. This act is a set of laws and regulations that set down the rules under which securities may be issued or traded in that province. Securities Industry Association (SIA) The trade association representing more than 600 securities firms throughout Canada and the United States. Members include banks, brokers, dealers and mutual fund companies. SEDAR The System for Electronic Document Analysis and Retrieval. SEDAR is an electronic filing system that allows listed companies to file prospectuses and continuous disclosure documents. The Canadian Securities Administrators, Canadian Depository for Securities Limited and the filing community developed it, with co-operation from legal firms and stock exchanges. SEDAR is a trademark of the Canadian Securities Administrators. Seed Stock The shares or stock sold by a company to provide start-up capital before carrying out an initial public offering (IPO). Self-Regulatory Organization An organization recognized by securities administrators as having powers to establish and enforce industry regulations to protect investors and to maintain fair, equitable and ethical practices in the securities industry. Examples include Toronto Stock Exchange and the Investment Dealers Association. Settlement The process that follows a transaction when the seller delivers the security to the buyer and the buyer pays the seller for the security. Settlement Date The date when a securities buyer must pay for a purchase or a seller must deliver the securities sold. Settlement must be made on or before the third business day following the transaction date in most cases. Settlement Price The price used to determine the daily net gains or losses in the value of an open futures or options contract. Share Certificate A paper certificate that represents the number of shares an investor owns. Short Selling The selling of a security that the seller does not own (naked or uncovered short) or has borrowed (covered short). Short selling is a trading strategy. Short sellers assume the risk that they will be able to buy the stock at a lower price, cover the outstanding short, and realize a profit from the difference. Special Terms Orders which must trade under special conditions. For example, a cash order will be settled sooner than the usual three-day settlement period. Special Trading Session A session during which trading in a listed security is limited to the execution of transactions at a single price. Speculator Someone prepared to accept calculated risks in the marketplace for attractive potential returns. Split Shares Capital and preferred shares issued by a split-share corporation. A split-share corporation holds common shares of one or more companies. The corporation then issues two classes of shares - capital shares and preferred shares. The objective is to generate fixed, cumulative, preferential dividends for the holders of preferred shares and to enable the holders of the capital shares to participate in any capital appreciation (or depreciation) in the underlying common shares. Sponsor, TSX Venture Issuers A Participating Organization of TSX or a Member of TSX Venture Exchange that is qualified to carry out a due-diligence review of an issuer and prepare a sponsor report, which provides an opinion on the suitability of that issuer for listing or continued listing on TSX Venture Exchange. Spread The difference between the bid and the ask prices of a stock. Standing Committees Committees formed for the purpose of assisting in decision-making on an ongoing basis. Stock DividendDistribution A dividenddistribution paid in securities of the same issue or a different issue of the same issuer or another issuer. A stock dividenddistribution can be used as a means to list a new issuer. The issuer or its representative provides the amount, payable date, and record date. The exchange that the issue is listed on sets the ex-dividenddistribution (ex-d) date for entitlement. Stock Index Futures Futures contracts which have a stock index as the underlying interest. Stock List Deletion A security issue that is removed or delisted from the list of tradable security issues of an exchange. It is usually accompanied with a reason for deletion and the deletion date. Stock Price Index A statistical measure of the state of the stock market, based on the performance of certain stocks. Examples include the SampPTSX Composite Index and the SampPTSX Venture Composite Index. Stock Price Index Value (SPIV) The number that is usually quoted as the value of an index. SPIV is based on the aggregate, float quoted market value of the index constituents and is calculated for all SampPTSX indices. SPIV is calculated at the end of the trading session for all SampPTSX indices and throughout the trading session for certain SampPTSX indices. Stock Split A corporate action that increases the number of securities issued and outstanding, without the issuer receiving any consideration for the issue. Approval by security holders is required in many jurisdictions. Each security holder gets more securities, in direct proportion to the amount of securities they own on the record date thus, their percentage ownership of the issuer does not change. For example, a two-for-one stock split involves the issuance of two new securities for every old security. Stock Symbol A one-character to three-character, alphabetic root symbol, which represents an issuer listed on Toronto Stock Exchange or TSX Venture Exchange. Stock Symbol Extension The character or characters that may follow the stock symbol to uniquely identify a listed security. It can be a single alphabetic character, two alphabetic characters, or a combination of two plus one characters with a maximum of eight characters for the stock symbol, extension and separator dots in between. For example, BMO.PR.U. Currently, they include: A-B - class of shares DB - debenture E - equity dividend H - NEX market IR - installment receipts NO, NS, NT - notes P - Capital Pool Company PR - preferred R - subscription receipts RT - rights S - special U.S. terms U, V - U.S. funds UN - units W - when issued WT - warrants Street Certificate These are certificates registered in the name of a securities firm rather than the owner of the security. This makes the certificate easily transferable to a new owner. Strike Price The price the owner of an option can purchase or sell the underlying security. The purchases and sales are also known as calls and puts. Structured Products Closed-end or open-end investment funds, which provide innovative and flexible investment products designed to respond to modern investor needs, such as yield enhancement, risk reduction, or asset diversification. Structured products allow investors to buy a single unitshare of a fund that represents an interest in the investment portfolio. Based on the investment strategy, the portfolio can purchase a basket of securities, track an index, or hold a specific type of security or portion of a security. The subcategories under the structured products include: investment funds, ETFs, capital trusts, split share corporations, and mutual fund partnerships. Substitutional Listing A broad category of transactions that involves one security on the stock list being replaced by another security or securities. Supplemental Listing A type of listing transaction, made after an issuers original listing, that involves the listing and posting for trading of a new issue of securities. Typically, this involves the listing of preferred shares, rights, warrants, or debentures. Supplemental also covers the additional listing of when-issued shares through a secondary offering of an issue that is already listed. Supplemental Listing Financing The dollar value of supplemental securities issued in accordance with a TSX or TSX Venture Exchange approved transaction. It is the stated prospectus price multiplied by the number of securities issued under the supplemental listing plus the over allotment. Suspended Issue The status of a listed security of an issuer whose trading privileges have been revoked by the Exchange. All securities of the issuer remain suspended until trading privileges have been reinstated, or the issuer is delisted. Suspended Issuer An issuer whose trading privileges for a listed security or securities have been revoked by Toronto Stock Exchange or TSX Venture Exchange. The listed issuer remains suspended until trading privileges have been reinstated, or the listed issuer is delisted. Symbol Change A change in a listed issuers stock symbol, which may be required by the Exchange in the context of an issuers reorganization or may be made at the request of the issuer. A requested symbol is available for use if it is appropriate for the type of security and the issuers voting structure. Thin Market A market that occurs when there are comparatively few bids to buy or offers to sell, or both. The phrase may apply to a single security or to the entire stock market. In a thin market, price fluctuations between transactions are usually larger than when the market is liquid. A thin market in a particular stock may reflect lack of interest in that issue, or a limited supply of the stock. Tick Slang used for minimum spread. Depending on the stock price it could be a half-cent, one cent or five cents. Ticker Tape Each time a stock is bought and sold, it is displayed on an electronic ticker tape. It is a record of current trading activity on an exchange. Ticket Fee The administrative fee charged for each trade. Tier Structure The TSX Venture Exchange market has two tiers where securities are listed and traded. Tier 1 is for advanced companies with a certain level of net tangible assets and earnings. Tier 2 is for more junior venture companies. Time Time refers to the time period you would like to see charted from the drop-down menu box labelled Time. These options give you a choice of intraday pricing data (Daily, 1-Minute, 5-Minute, 15-Minute and Hourly) options. The additional options refer to end-of-day pricing data. This term refers to a TSX Group Historical Performance charting feature. Time Value The difference between an options premium and its intrinsic value. Timely Disclosure Policy This policy requires all listed companies to publicly disclose material information in a timely manner. TL1 Toronto Level 1 (TL1) is a real-time service for listed senior equities that provides trades, quotes, corporate actions and index information from TSX. TL2 Toronto Level 2 (TL2) is a real-time service for senior equities that shows all of the committed orders and trades for each TSX listed security in real time. Toronto Stock Exchange Canadas national stock exchange, which serves the senior equity market. Total Number of Shares The total number of issued and outstanding shares for the security. Total Return Index Value (TRIV) Similar to the stock price index value (SPIV), except that the TRIV is based on the aggregate, float quoted market value of the index constituents (SPIV) plus their paid dividendsdistributions. TRIV is calculated only at the end of the trading session for all SampPTSX indices. Trading Halt A trading halt is imposed by the exchange, usually due to the dissemination of news that might impact a stocks price. Trading Issue The status of a listed security of an issuer whose trading privileges are active on the Exchange. Trading Issuer An issuer that has at least one class of securities whose trading privileges are active on Toronto Stock Exchange or TSX Venture Exchange. Trading Number The unique, 3-digit number assigned to each Participating Organization and Member to identify it for market transparency. Trading Session The period during which the Exchange is open for trading. Traded Value The total dollar value of shares traded during a trading session. Trailing Twelve Months Earnings Per Share (TTM EPS) Trailing, twelve-months earnings per share (TTM EPS), reported by TSX for listed issuers, is an annualized EPS calculation, based on EPS as presented by the issuer, from their latest annual financial statements and the latest subsequent interim financial statements, if any. It includes special items, such as extraordinary items or discontinued operations. It indicates the issuers annualized earnings for the latest financial reporting period. It is also used to calculate the issuers priceearnings (PE) ratio that is reported on tmxmoney. Transaction Date The date when the purchase or sale of a security takes place. Transactions As reported in exchange trading statistics, represents the total number of trades for a specified period. Transfer Agent A trust company appointed by a listed company to keep a record of the names, addresses and number of shares held by its shareholders. Frequently, the transfer agent also distributes dividend cheques to the companys shareholders. Transferable Security A security that can be transferred from one party holder to another without restrictions, provided that all proper documentation is included. TSX Industrial Category Includes all issuers that are not classified as mining or oil and gas. TSX Industrial, Mines and Oil amp Gas Categories (IMO) The broad classification of issuers into an industrial, mining, or oil and gas category. The classification is done at the review of the original listing application or at a later review of the listed issuer. The classification determines which listing standard is to be applied to the issuer. TSX Marker for U.S. or Non-U.S. Foreign Incorporated Issuer A marker used by TSX to classify trading (including interlisted shares) and market capitalization by domestic, U.S. and non-U.S. foreign issuers. The data source is the original listing bulletin, which includes a notation on the laws or jurisdiction the issuer was incorporated under. Non-A.S. foreign issuer data is not broken down by country of incorporation. TSX Mines Category Includes: Mining issuers that have proven or probable reserves and are either in production or have made a production decision. Mineral exploration and development issuers that have a planned work program of exploration or development. TSX Oil amp Gas Category Includes oil and gas companies that have proven and developed reserves and ongoing operations. TSX Venture Exchange Canadas national stock exchange, which serves the public, venture equity market. Underlying Interest The specific security, commodity, index or financial instrument that an option or futures contract is traded. Underwriting The purchase for resale of a new issue of securities by an investment dealer or group of dealers who are also known as underwriters. The formal agreements for these transactions are called underwriting agreements. Unlisted A security not listed on a stock exchange, but traded on the over-the-counter market. Uptick A stock is said to be on an uptick when the last trade occurred at a higher price than the one before it. Venture Capital Money raised by companies to finance new ventures. Venture Company A classification of TSX Venture Exchange-listed companies that are in the early stages of development and meet the minimum asset, market value and shareholder distribution requirements for Tier 2 listing. Volatility A statistical measure of changes in price over a period of time. VWAP Volume-weighted, average trading price of the listed securities, calculated by dividing the total value by the total volume of securities traded for the relevant period. Where appropriate, TSX may exclude internal crosses and certain other special terms trades from the calculation. This definition is generally used by listed issuers to price their shares. VWAP Cross A transaction for the purpose of executing a trade at a volume-weighted average price of a security traded for a continuous period, on or during a trading day on the Exchange. Marked as a specialty-priced cross, a VWAP cross may be executed outside the quote, will not set the last sale price, and is not subject to interference by other orders on the book. VWAP crosses may be executed in the post open and special trading sessions. Warrant A security giving the holder the right to purchase securities at a stipulated price within a specified time limit. Exercise of the warrant is solely at the discretion of the holder. Warrants are not exercisable after the expiry date. A warrant is often issued in conjunction with another security as part of a financing. A warrant may be traded as a listed security or it may be held privately. When-Issued Trading Occurs when the security has been listed and posted for trading, but the certificate representing the security itself is not yet issued and available for settlement. The exchange bulletin issued on listing of the security indicates if the trading will be done on a when-issued basis. In this case, the issuance of the security is guaranteed and the delay in issuance is often due to factors relating to the printing and distribution of the security. The period for when-issued trading is usually less than one week. World Federation of Exchanges (WFE) The World Federation of Exchanges (WFE) is a global trade association for the exchange industry. The membership is comprised of more than 50 regulated exchanges from all regions of the world. Together, these exchanges account for over 95 of world stock market capitalization, and most of its exchange-traded futures, options, listed investment funds, and bonds. TSX is a member of WFE, and is on the Federations Board of Directors. Writer The seller of an option. The writer has an obligation associated with the contract to either purchase or sell a specified number of shares at the strike price on or before expiry. XL1 Index Level 1 is a feed service that provides index and constituent data for the equity SampPTSX indices. Current day constituent data is broadcast before market open. Complete index and constituent data is delivered at end of day. Yield This is the measure of the return on an investment and is shown as a percentage. A stock yield is calculated by dividing the annual dividend by the stocks current market price. For example, a stock selling at 50 and with an annual dividend of 5 per share yields 10. A bond yield is a more complicated calculation, involving annual interest payments, plus amortizing the difference between its current market price and par value over the life of the bond.