 |
|
|
|
| |
Accounts
Payable |
|
Money owed by a company for goods and services purchased payable within
one year. |
|
|
|
|
| |
Accounts
Receivable |
|
Money owed to a company for goods and services it has sold for which payment
is expected within one year. |
|
|
|
|
| |
Accrued
interest |
|
Interest that has been earned but not received. |
|
|
|
|
| |
Accumulation
plan |
|
See Pre-authorized contribution (PAC) plan. |
|
|
|
|
| |
Adjustments
|
|
Occur as a result of certain events such as a stock split or a stock dividend
(e.g., a 3-for-2 stock split). An adjusted option's trading unit may be
more than the usual one hundred shares. For example, after a 3-for-2 stock
split, the adjusted option will represent 150 shares. For such options,
the premium must be multiplied by a corresponding factor. Example: buying
1 call (covering 150 shares) at 4 would cost $600. See also exercise price.
|
|
|
|
|
|
Agent |
|
An investment dealer is classified as an agent when he/she is acting on
behalf of his/her clients as buyer or seller of assets. He/she does not
own the asset at any time during the transaction. |
| |
|
|
|
|
All-or-none order (AON) |
|
A type of order requiring either complete execution or none at all. An AON
order may be either a day order or a Good-'til-cancelled (GTC) order.
|
| |
|
|
|
|
American-style option |
|
An
option which the holder may exercise at any time up to and including the
expiration date. |
| |
|
|
|
|
Amortization |
|
Gradually
writing off the value of an intangible asset over a period of time. |
| |
|
|
|
|
Annual Information Form (AIF) |
|
A
document which contains information, required by law, which is not included
in a mutual fund or a company's simplified prospectus or annual financial
statements. |
| |
|
|
|
|
Annual report |
|
A
publication, including financial statements and a report on operations,
issued by a company to its shareholders at the company's fiscal year-end. |
| |
|
|
|
|
Approved participant |
|
A
securities dealer who has been approved by Bourse de Montréal Inc.
for the purpose of trading listed products on the Bourse. |
| |
|
|
|
|
Arbitrage |
|
A trading technique involving the simultaneous purchase and sale of identical
assets or of equivalent assets in two different markets.The intention is
to profit from any price discrepancies. |
| |
|
|
|
|
Arrears |
|
Interest or dividends which were not paid when due but are still owed.
|
| |
|
|
|
|
Ask |
|
The lowest selling price available in a given market for the security being
quoted. |
| |
|
|
|
|
Asset allocation |
|
The process of setting and later, when necessary, rebalancing the asset
mix. |
| |
|
|
|
|
Asset mix |
|
The percentage distribution of assets in a portfolio among the three major
asset classes: 1) cash and equivalents, 2) fixed income and 3) equities. |
| |
|
|
|
|
Assets |
|
What a firm or individual owns including equity and fixed income securities,
and derivatives. |
| |
|
|
|
|
Assignment |
|
An assignment takes place when a holder exercises an option. The option
writer receives an exercise notice that obliges him to sell (in the case
of a call option) or buy (in the case of a put option) the underlying shares
at the stipulated exercise price. |
| |
|
|
|
|
Assigned (an exercise) |
|
Received notification of an assignment by the clearing corporation (in Canada,
the Canadian Derivatives Clearing Corporation (CDCC)). |
| |
|
|
|
|
At-the-money |
|
When the option exercise price and the price of the underlying security
are the same or nearly the same. |
| |
|
|
|
|
Automatic exercise |
|
A procedure used by the CDCC as an operational convenience for it's clearing
members. Under these proceedings, a clearing member is deemed to have tendered
excercise notices for options that are in-the-money by threshold amounts,
unless specifically instructed not to do so. This procedure protects the
owner from losing the intrinsic value of the option for failing to exercise.
Unless instructed not to do so, all expiring equity options that are held
in customer accounts will be exercised if they are in-the-money by 75 cents
or more. |
| |
|
|
|
|
Averaging down |
|
Buying more of an asset at a price which is lower than the price paid for
the initial investment to reduce the average cost per unit. |
| |
|
|
|
