File Name: glossary of investment terms and definitions .zip
Adjusted cost base ACB : the book value of a security based on the initial investment cost, additional contributions and reinvested amounts. Annuity : an insurance product that makes monthly payments for a specified period, or for life. An annuity may be suitable for those who have no pension or are concerned about outliving their money.
From Wikipedia, the free encyclopedia. List of definitions of terms and concepts used in stock exchanges. Securities and Exchange Commission.
Glossary of terms
Adjusted cost base ACB : the book value of a security based on the initial investment cost, additional contributions and reinvested amounts.
Annuity : an insurance product that makes monthly payments for a specified period, or for life. An annuity may be suitable for those who have no pension or are concerned about outliving their money. Arbitrage : the practice of buying an asset in one market and selling the same asset in another. The goal is to profit from a temporary difference in prices, currency exchange rates or the like. Ask price : the lowest price potential sellers are willing to accept for a stock.
The ask price is always higher than the bid price. Your asset allocation is determined by your return objectives, risk tolerance, income needs, and other factors. Beta : a measure of the volatility of a stock or portfolio of stocks and how closely it correlates with the overall market bID price: the highest price potential buyers are willing to pay for a stock.
The bid price is always less than the ask price. Stocks with a wide bid-ask spread are more expensive to trade. Buy and hold : a disciplined investing strategy that is based on holding stocks and other assets in your portfolio for a long period of time, regardless of the ebbs and flows of the market.
Call option : a contract that gives you the right, but not the obligation, to buy a stock at a specified price within a certain time frame.
Capital gain loss : the difference between the price you receive when selling an asset and its adjusted cost base.
A capital gain is the profit you make when you sell a stock for more than you paid. A capital loss occurs when you sell for less than you paid. Capital gains are taxed at half the rate of regular income, and they can be offset with capital losses.
Common share : a security representing part ownership of a company. Common shareholders can normally vote for the board of directors and are entitled to approved dividends after bondholders and preferred shareholders. See also preferred share. Deemed disposition : the assumed sale of an asset for tax purposes, even if no actual sale has taken place.
For example, when you die, cease to be a Canadian resident, or transfer stocks from a non-registered account to a registered account, capital gains taxes may be payable just as if you had sold the stocks. Discount brokerage : a firm that allows you to buy and sell securities online or by phone at a lower cost than a full-service brokerage. Discount brokerages are not usually allowed to provide advice on securities: they simply take your order and execute.
Diversification : the practice of spreading out investments across different securities, sectors and asset classes in order to reduce risk. Dividends are payable to the holders of preferred shares according to set formula, and to common shareholders when approved by the board of directors.
Dividend reinvestment plan DRIP : an arrangement whereby an investor can receive dividends in the form of new shares rather than in cash. DRIPs can be set up directly with certain companies, or through a brokerage. Participating in a DRIP allows your investment to compound more quickly. Dividend tax credit : a credit you can claim on your tax return that reduces the amount of tax you pay on dividends from Canadian companies.
Dollar-cost averaging DCA : the practice of investing equal amounts of money at regular intervals instead of a lump sum. Dollar-cost averaging reduces the risk of making an ill-timed investment decision. Emerging markets : countries whose stock markets are considered less developed, such as China, India, Brazil and Russia. Exchange-traded fund ETF : an investment fund that holds a basket of stocks, bonds or other securities and trades on a stock exchange. Traditional ETFs are index funds, which offer a low-cost way of building a diversified portfolio without selecting individual stocks or bonds.
Fair market value FMV : the price an asset is worth in the marketplace. Fixed income : assets such as bonds and GICs that pay a fixed rate of interest to the investor. Full-service brokerage : a firm that buys and sells stocks on your behalf and offers professional advice on investments.
Accordingly, full-service brokerages charge higher fees than discount brokerages. Gross domestic product GDP : the value of all goods and services produced in a country. Gross-up : the amount that must be added to eligible Canadian dividends before reporting them as income. The dividend tax credit then applies to this grossed-up amount. Guaranteed Investment Certificate GIC : an investment sold by a financial institution that pays a fixed rate of interest for a set period, usually one to five years.
GICs are normally guaranteed by the federal or provincial government. Index : a selected number of stocks or bonds used to represent an asset class or segment of the market.
Index fund : a mutual fund or ETF that attempts to match the returns of an asset class or market segment by holding all the stocks or bonds in an index. Large-cap stock : a public company with a large market capitalization. While there are no hard rules, the cutoff for U. See also small-cap stock. Margin account : an investment account with a discount or full-service brokerage that allows you to buy stocks on credit. Marginal tax rate MTR : the amount of tax you pay on the next dollar you earn, which varies according to your income and the province you live in.
Market order : an order placed on a stock exchange to buy or sell a stock at the current market price. Market timing : an investing strategy that involves making buying and selling decisions based on your expectations of how the markets will perform in the near future. The term usually refers to moving from stocks to cash and vice-versa, based on technical indicators or market forecasts. Momentum investing : a strategy that involves buying stocks that have recently risen in value and avoiding or selling short stocks that have recently declined.
Decisions are usually based on three- to month time frames. Non-registered account : an investment account that is not sheltered from taxes. Also known a taxable or open account. See also registered account. Overweighting : the decision to hold a significant portion of a portfolio in one sector or stock you believe will outperform. The payout ratio can help you determine whether a dividend is sustainable.
Preferred share : a security providing the investor with a fixed dividend that must be paid before dividends to common shareholders. If a company is liquidated, preferred shareholders rank ahead of common shareholders but behind bondholders. Canadian preferreds receive favorable tax treatment in taxable accounts. See also common share. Put option : a contract that gives you the right, but not the obligation, to sell a stock at a specified price within a certain time frame.
Registered retirement savings plan RRSP : an investment account that allows you to save for your retirement on a tax-deferred basis. Contribution limits are set according to your income and are tax-deductible. All growth and income accumulates tax-free in the account until you withdraw it. Registered retirement income fund RRIF : an investment account that allows you to shelter growth from taxes during retirement but also requires minimum annual withdrawals. Return of capital ROC : a payment made by a company, trust, or mutual fund that unlike a dividend or interest payment consists of part of your original investment being returned to you.
Return of capital is not taxable when it is received, but it lowers the adjusted cost base of your investment, which may result in a capital gain in the future. Risk-free rate : a rate of return that can be achieved by a safe investment, such as Treasury bills. The risk-free rate is used in the Capital Asset Pricing Model to determine the additional return you should expect from a risky investment.
Security : a tradable financial instrument such as a stock, bond or option. Short selling : a technique whereby an investor borrows a stock and then sells it, with the intention of repurchasing it later at a lower price. Short sellers hope to make a profit on stocks they believe will fall in value.
Small-cap stock : a public company with a small market capitalization. See also large-cap stock. Stock : a security that grants partial ownership of a company to an investor. Stock split : a decision by a company to increase its number of shares outstanding while keeping the total value of those shares the same. Strike price : the price at which an option holder can buy or sell a stock. Tax-free savings account TFSA : an investment account that allows all growth and income to accumulate tax-tree.
Contributions receive no tax deduction but all withdrawals can be made tax-free. Ticker symbol : a one- to five-letter symbol used to identify a company on a stock exchange. Value stocks : companies that appear to be underpriced based on a number of fundmental factors, such as low price-to-earnings and price-to-book ratios or high dividend yield.
Yield : the income generated by a stock or bond. Investing: Glossary Advertisement. A glossary of terms for seasoned and rookie investors alike A.
Glossary of Terms
No k help center would be complete without a guide to the industry specific terminology associated with retirement plans. Untangle the jargon and learn what the insiders know. Courtesy of the IRS, this alphabetical index provides information on a variety of retirement plan topics. Menu Close. Glossary of Terms.
Need Login Help? Welcome to Firstrade's stock trading terms glossary. Do all the research you want. Use this glossary to look up the definition of any financial term. Abandon To not to exercise or sell an option.
A number of the terms have other non-investment related meanings, which we have not captured. The dictionary is intended to supplement rather than replace.
Glossary of Investment Terms
Select the first letter of the word from the list below to jump to the appropriate section of the glossary. If the term you are looking for starts with a number or symbol, choose the " " link. Alternative Minimum Tax AMT - Federal tax, revamped by the Tax Reform Act of , aimed at ensuring that wealthy individuals, trusts, estates and corporations pay at least some tax.
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The ability to use derivatives, arbitrage techniques and, more importantly, short selling - selling assets that one does not own with the expectation of buying them back at a lower price — affords alternative investment managers rich possibilities to generate growth in falling, rising and unstable markets. Asset allocation - The structure of a portfolio - namely the allocation of specific portions of it across different assets classes, i. Assets under management - Includes all investments, including cash, which are managed and administered by a fund manager for itself and its customers. Downside risk - Downside risk is a similar measure to Volatility, except that this statistic calculates an average return for only the periods where return was lower than zero or another benchmark rate and then measures the variation of only these "losing" periods around the calculated average. In other words, this statistic measures the volatility of the downside performance.
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Там, где только что было его плечо, оказалась черная пустота. Она шагнула вперед, но и там была та же пустота. Сигналы продолжались. Источник их находился где-то совсем близко. Сьюзан поворачивалась то влево, то вправо.
Длинные ниспадающие рыжие волосы, идеальная иберийская кожа, темно-карие глаза, высокий ровный лоб. На девушке был такой же, как на немце, белый махровый халат с поясом, свободно лежащим на ее широких бедрах, распахнутый ворот открывал загорелую ложбинку между грудями. Росио уверенно, по-хозяйски вошла в спальню. - Чем могу помочь? - спросила она на гортанном английском. Беккер не мигая смотрел на эту восхитительную женщину. - Мне нужно кольцо, - холодно сказал .
Read J.P. Morgan Asset Management's Glossary of Investment Terms, which is a Asset allocation - The process of dividing investments among cash, income Recession - A downturn in economic activity, defined by many economists as at.
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