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The following definitions may help you better understand the capital markets.
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A security's nominal face value.
An order receives a partial fill when it trades only part of its total committed volume.
A firm entitled to trade through Toronto Stock Exchange or TSX Venture Exchange. Participating Organizations are involved in all aspects of the securities business, including underwriting new issues, corporate finance and assisting companies in the IPO process. The equivalent of a Toronto Stock Exchange Participating Organization is known as a Member Firm on TSX Venture Exchange.
Low-priced speculative issues of stock selling at less than $1.00 a share.
Holdings of securities by an individual or institution. A portfolio may include various types of securities representing different companies and industry sectors.
The maximum number of futures or options contracts any individual or group of people acting together may hold at one time.
A class of stock that entitles shareholders to a fixed dividend that is paid before dividends to common shareholders. Preferred shareholders are also entitled to a stated dollar value per share if the company liquidates. Preferred shareholders usually don't have voting rights. Preferred shares are generally considered income investments.
An option contract's price.
A common stock's 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.
A trade when an investment dealer is either buying from, or selling to its client.
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.
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.
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.
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 company's operations, securities, management and purpose of the offering.
The number of issued and outstanding shares of a company, excluding shares held by persons who, individually or in conjunction with other persons, hold 20% or more of the company's voting securities.
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.
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.
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