A Flashcards
(35 cards)
Accredited Investor
An individual or institutional investor who
meets certain minimum requirement
relating to income, net worth, or investment
knowledge. Also referred to as a sophisticated
investor
Accrued Interest
Interest accumulated on a bond or debenture
since the last interest payment date
Adjusted Cost Base
The deemed cost of an asset representing
the sum of the amount originally paid plus
any additional costs, such as brokerage fees
and commissions
Advance-Decline Line
A tool used in technical analysis to measure
the breadth of the market. The analyst takes
difference between the number of stocks
that increased in value each day less the
number that have decreased.
After Acquired Clause
A protective clause found in a bond’s
indenture or contract that binds the bond
issuer to pledging all subsequently purchased
assets as part of the collateral for a bond
issue
After Market Stabilization
A type of arrangement where the dealer
supports the offer price of a newly issued
stock once it begins trading in the
secondary market.
Agency Traders
Manage trades for institutional clients.
They do not trade the dealer member’s
capital, and they trade only when acting on
behalf of clients. Agency traders do not
merely take orders; they must manage
institutional orders with minimal market
impact and act as the client’s eyes and ears
for relevant market intelligence.
Agent
An investment dealer operates as an agent
when it acts on behalf of a buyer or a seller
of a security and does not itself own title to
the securities at any time during the
transactions. See also Principal.
All or None Order (AON)
An order that must be executed in its
entirety – partial fills will not be accepted.
Allocation
The administrative procedure by which
income generated by the segregated fund’s
investment portfolio is flowed through to
the individual contract holders of the fund.
Alpha
A statistical measure of the value a fund
manager adds to the performance of the
fund managed. If alpha is positive, the
manager has added value to the portfolio. If
the alpha is negative, the manager has
underperformed the market
Alternative Trading Systems (ATS)
Privately-owned computerized networks
that match orders for securities outside of
recognized exchange facilities. Also referred
to as Proprietary Electronic Trading Systems
(PETS).
American-Style Option
An option that can be exercised at any time
during the option’s lifetime. See also
European-Style Option.
Amortization
Gradually writing off the value of an
intangible asset over a period of time.
Commonly applied to items such as
goodwill, improvements to leased premises,
or expenses of a new stock or bond issue.
See also Depreciation
Annual Information Form (AIF)
A document in which an issuer is required
to disclose information about presently
known trends, commitments, events or
uncertainties that are reasonably expected
to have a material impact on the issuer’s
business, financial condition or results of
operations. Although investors are typically
not provided with the AIF, the prospectus
must state that it is available on request.
Annual Report
The formal financial statements and report
on operations issued by a company to its
shareholders after its fiscal year-end.
Annuitant
Person on whose life the maturity and
death benefit guarantees are based. It can be
the contract holder or someone else
designated by the contract holder. In
registered plans, the annuitant and contract
holder must be the same person.
Annuity
A contract usually sold by life insurance
companies that guarantees an income to the
benefi ciary or annuitant at some time in the
future. The income stream can be very
fl exible. The original purchase price may be
either a lump sum or a stream of payments.
See Deferred Annuity and Immediate
Annuity
Any Part Order
A type of order in which the client will
accept all stock in odd, broken or standard
trading units up to the full amount of the
order
Arbitrage
The simultaneous purchase of a security on
one stock exchange and the sale of the same
security on another exchange at prices which
yield a profit to the arbitrageur.
Arbitration
A method of dispute resolution in which an
independent arbitrator is chosen to assist
aggrieved parties recover damages.
Arrears
Interest or dividends that were not paid
when due but are still owed. For example,
dividends owed but not paid to cumulative
preferred shareholders accumulate in a
separate account (arrears). When payments
resume, dividends in arrears must be paid
to the preferred shareholders before the
common shareholders.
Ask
The lowest price a seller will accept for the
financial instrument being quoted. See also
Bid.
Asset
Everything a company or a person owns or
has owed to it. A statement of financial
position category.
