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The following definitions may help you better understand the capital markets.
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Formally known as the S&P/CDNX Composite Index, it provides a benchmark used to measure the price performance of the Canadian venture capital equity market.
A benchmark used to measure the price performance of the broad Canadian equity market.
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 the Toronto Stock Exchange is now a publicly held company, there are no longer seats on this exchange.
Transferable certificates of ownership of investment products such as notes, bonds, stocks, futures contracts and options.
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.
The federal regulatory body for interstate securities transactions in the United States.
The trade association representing more than 600 securities firms throughout Canada and the United States. Members include banks, brokers, dealers and mutual fund companies.
The System for Electronic Document Analysis 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.
The shares or stock sold by a company to provide start-up capital before carrying out an initial public offering (IPO).
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 security industry. Examples include the Ontario Securities Commission and the Investment Dealers Association.
The process that follows a transaction when the seller delivers the security to the buyer and the buyer pays the seller for the security.
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.
The price used to determine the daily net gains or losses in the value of an open futures or options contract.
A paper certificate that represents the number of shares an investor owns.
The number of issued shares that are currently subject to escrow restrictions. Escrow shares are issued non-tradable stock held separately from free-trading shares until certain conditions are met.
The sale of securities that the seller does not own. This is a speculative practice done when the seller believes a stock's price is going to fall and the seller will be able to cover the sale by buying the security back at a lower price. The profit is the difference between the initial selling price and the subsequent purchase price. It is illegal for a seller not to declare a short sale when placing the order.
Orders which must trade under special conditions. For example, a cash order will be settled sooner than the usual three-day settlement period.
Someone prepared to accept calculated risks in the marketplace for attractive potential returns.
A division of a company's outstanding shares into a larger number of shares. Each outstanding share entitles its owner to a pre-determined number of new shares.
The difference between the bid and the ask prices of a stock.
Futures contracts which have a stock index as the underlying interest.
A statistical measure of the state of the stock market, based on the performance of certain stocks. Examples include the S&P/TSX Composite Index and the S&P/TSX Venture Composite Index.
A one to three-character root symbol that represents a company listed on the exchange. This symbol is uniform throughout Canada.
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.
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.
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