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Stocks

All terms and concepts related to stocks, also known as equities, which represent ownership shares in a company and are traded in financial markets.

Write
An essential concept in finance is the writing of options, which refers to selling an option. The individual responsible for selling the option is known as the writer. This ...
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Whisper Number
When studying the world of finance, it is important to understand the practice of analysts publishing earnings forecasts for the companies they monitor. Surprisingly, some a...
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When-Issued Trading
When a security is listed for trading, but the physical certificate has not been issued yet, it is known as when-issued trading. This is common when a new security is introd...
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Watch Portfolio
Let's discuss a concept in finance known as a "watchlist". This refers to a collection of stocks or funds that we are keeping an eye on, but have not yet invested in. It's ...
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Volume
In the world of finance, volume refers to the daily amount of shares being traded for a particular security. This is a crucial factor that we, as knowledgeable investors, cl...
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Volatility
Volatility refers to the amount of variation or uncertainty in the price of a security. It is an important concept in finance as it helps investors assess the risk associa...
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Volatile
In the world of finance, we often come across the term "volatility." This refers to the tendency of a market or security to fluctuate frequently and significantly in price....
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Venture Capitalist
A pre-IPO investor is someone who provides financial support to a company before it becomes publicly traded. In return, the investor receives a portion of ownership in the c...
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Value Investor
A value investor is someone who actively searches for undervalued stocks in the market. This means they are constantly on the lookout for stocks that are priced lower than t...
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Uptrend
The value of a company's stock is experiencing an upward trend. This indicates that investors are showing confidence in the company's financial performance and future prospe...
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Uptick
It is a common market trend that indicates an increase in demand for a particular stock, resulting in its price going up. In the world of finance, when the last recorded tr...
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Upside Breakout
As a knowledgeable professor in the field of finance, I would like to discuss with you the concept of a breakout in stocks. A breakout happens when a stock, after consolidat...
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Unlisted
In the world of finance, there exists a type of security that is not publicly listed on a stock exchange, but rather traded on the over-the-counter (OTC) market. This market...
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Undervalued
A stock trading below its fair value refers to a situation where the current market price of a stock is lower than its intrinsic value. In other words, the stock is underval...
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Underlying Interest
An essential aspect of financial trading is the underlying asset, which refers to the specific security, commodity, index, or financial instrument that an option or futures ...
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Triple Witching
In the world of finance, there exists a notable day that falls on the third Friday of March, June, September, and December. On this day, traders and investors alike brace th...
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Trending Market
In the world of finance, it is important to understand the concept of price movements. Prices tend to move in a singular direction, often reaching an extreme point by the en...
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Trend Lines
A trend line is a valuable tool in finance that helps us understand a stock's price movement. It is created by connecting a stock's successive lows to determine support and ...
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Transferable Security
A security is a transferable instrument that can be freely traded between parties, as long as all necessary paperwork is present. This means that the holder of the security ...
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Transfer Agent
A transfer agent, employed by a publicly traded company, is responsible for maintaining a comprehensive registry of its shareholders. This includes their personal informatio...
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Transactions
The exchange trading statistics record the total number of trades made within a specified period, denoted as volume. This figure is a crucial indicator of market activity an...
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Transaction Date
The execution date refers to the specific day on which the buying or selling of a financial instrument occurs. This date is significant in the world of finance as it marks ...
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Trailing Twelve Months (TTM)
Understanding financial terms can be challenging, but don't worry, I'm here to guide you. Let's start with the term "last four reported quarters." This refers to the most rec...
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Trading Session
The trading hours refer to the specific time frame when the stock exchange is actively facilitating the buying and selling of securities. This window usually spans from the ...
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Trading Range
In the world of finance, a trading range is a common occurrence where a stock or average fluctuates between a consistent high and low over a period of time, ranging from day...
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Trading Number
The term "Market Participant Identifier" refers to a distinctive three-digit number that is assigned to both Participating Organizations and Members. This number serves the ...
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Trading Issue
A listed security is a valuable asset for an issuer whose trading privileges are active on the Exchange. This status signifies the security's presence on the official list o...
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Trading Halt
It is a temporary pause in trading activity to allow investors time to digest the information and make informed decisions. This mechanism helps maintain market stability and ...
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Total Return Index Value (TRIV)
The concept of Total Return Index Value (TRIV) is similar to that of Stock Price Index Value (SPIV), with the key difference being that TRIV takes into account both the aggr...
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Total Number of Shares
When we talk about the total number of issued and outstanding shares for a security, we are referring to the total number of shares that have been issued by a company and ar...
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Top-Line
Sales or revenues are the primary source of income for a business. They refer to the amount of money received from selling goods or services. As a professor of finance, it i...
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Top
In the world of finance, there exists a term known as "bearish." This term refers to a market trend in which the stock price is expected to decline. It is often represented ...
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To Buy and To Sell
In the world of finance, there are certain phrases that are commonly used when it comes to buying or selling securities. For instance, when placing an order to buy ten contr...
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Timely Disclosure Policy
As finance students, it's essential to understand the significance of timely disclosure of material information in the corporate world. This policy, which applies to all list...
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Time Segmented Volume (TSV)
On the other hand, if TSV is declining, it may suggest that the stock's price could also decline. The TSV, or the Time Series Volume, is a valuable tool used in the world o...
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Ticket Fee
An essential aspect of financial transactions is the administrative fee that is imposed on every trade. This fee is a standard charge applied by financial institutions to co...
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Tick
In finance, there is a common term used to refer to the minimum spread: "the tick size." This refers to the minimum price increment that a stock can move. The tick size can ...
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Thin Market
In the world of finance, a thin market refers to a situation where there are not many buyers or sellers for a particular security or in the stock market as a whole. This can...
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Technical Analysis
Welcome to the world of finance, where the use of price and volume charts and other technical indicators is a common practice for making trading decisions. This approach, kn...
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Symbol Change
When a listed company undergoes a reorganization or requests a change in their stock symbol, the Exchange may require a change to better reflect the issuer's current situati...
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Sweep
In the world of finance, there is a concept known as the transfer of funds from a non-interest-bearing account to an interest-bearing one. This practice involves moving mone...
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Suspended Issue
When a security listed by an issuer has its trading privileges revoked by the Exchange, it is considered to have suspended status. This means that all securities from that i...
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Surprise
Understanding the difference between reported earnings and analysts’ consensus forecasts is crucial in the world of finance. When a company’s reported earnings surpass the f...
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Support Levels
Support levels are crucial in understanding the behavior of a stock and its potential for growth. These levels are formed when a stock breaks above resistance and remains ab...
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Supplemental Listing
A supplemental listing is a subsequent transaction that occurs after an issuer's initial listing. This involves the listing and trading of a new issue of securities, such as...
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Substitutional Listing
This In the world of finance, there exists a category of transactions that deals with the replacement of one security on the stock list with another, or even multiple, sec...
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Structured Products
As we delve into the world of finance, it's important to familiarize ourselves with the various investment options available to us. Today, we will be discussing closed-end a...
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Street Certificate
Certificates of securities, also known as bearer securities, are registered under the name of a securities firm instead of the security's owner. This allows for easy transfe...
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Stop Order (stop loss)
When you place an order through a broker to sell a stock, you have the option to set a limit price. This means that if the stock's market price drops to the specified limit,...
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Stop Order
A stop order is a type of order that is placed at a price above or below the current market price. It becomes a market order when the security reaches the specified price. B...
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Stock Symbol Extension
In the world of finance, it is important to understand the various symbols used to identify listed securities. These symbols can consist of a single letter, two letters, or ...
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Stock Symbol
A crucial element in the world of finance is the root symbol, typically consisting of one to three alphabetic characters. This symbol is assigned to an issuer that is listed...
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Stock Split
Welcome students, today we will be discussing a significant concept in corporate finance - stock splits. A stock split is a corporate action that increases the number of sec...
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Stock Price Index
Stock market indices are crucial tools used to assess the overall performance of the market. They are calculated by tracking the prices of a selected group of stocks, such a...
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Stock List Deletion
A security is said to be delisted when it is removed from the list of tradable securities on an exchange. This can happen for a variety of reasons, such as poor financial pe...
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Stock Index Futures
Futures contracts are financial agreements that involve the sale of an underlying asset at a predetermined price and date. In the context of finance, these contracts may inv...
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Stock Dividend/Distribution
Dividends and distributions are important components of the stock market, as they allow companies to distribute their profits to shareholders. A dividend or distribution can...
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Standing Committees
Committees are essential components in decision-making processes, offering ongoing support and expertise. They are composed of knowledgeable individuals who provide valuable...
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Spread
As a finance professor, I must stress the importance of understanding the concept of spread in the world of investments. This term refers to the difference between the bid a...
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Split Shares
A split-share corporation is a unique entity that aims to provide both stable dividends and potential capital appreciation to its shareholders. This is achieved through the ...
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Speculator
A risk-taker who is willing to strategically invest in the market in pursuit of profitable gains. This individual understands the importance of carefully analyzing potential...
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Special Trading Session
In the realm of finance, a single-price trading session refers to a period of time where buying and selling of a listed security is restricted to a singular price. This appr...
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Special Terms
In the world of finance, there are certain types of orders that require special conditions for trading. These orders, known as cash orders, have a quicker settlement period ...
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Simple Moving Average (SMA)
Average stock price is a crucial financial metric that reflects the average value of a stock over a specific period. It is calculated by dividing the total value of a stock ...
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Short-term Debt
Short-term borrowings, also known as current liabilities, refer to any financial obligations that must be repaid within a period of one year. These can include loans, credit...
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Short Squeeze
Short sellers are investors who borrow stocks and then sell them in hopes of buying them back at a lower price in the future. When there is a sudden rise in the stock price,...
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Short Sale Squeeze
A short sale squeeze is a phenomenon that arises when there is a high number of short sale positions on a particular stock, causing its price to rise. This increase in price...
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Short Sale
When it comes to investing, there is a strategy known as short selling, where individuals sell stocks they do not currently own. The goal is to buy back the stock at a lower...
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Short
One of the important concepts in finance is "naked option." This term refers to the situation where an individual sells an option without actually owning the underlying secu...
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Shares outstanding
A company's outstanding shares refer to the total number of shares that have been issued by the corporation. These shares are held by shareholders, who own a portion of the ...
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Shareholders Equity
A key concept in finance is book value, which represents the difference between a company's assets and liabilities on its balance sheet. Calculated by dividing shareholders'...
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Share Certificate
A stock certificate is a tangible document that symbolizes an investor's ownership in a company. This certificate is proof of the number of shares held by the investor and is...
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Settlement Date
In the world of finance, the concept of settlement refers to the date on which a securities buyer is required to make payment for a purchase, or a seller is obligated to del...
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Sell Side Analyst
A financial expert working for a brokerage firm, such as the reputable Merrill Lynch....
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Seed Stock
When a company decides to raise funds for its operations, it can sell shares or stocks to investors in exchange for capital. This process is known as pre-IPO placement and i...
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Securities Commission
Provincial securities acts play a pivotal role in regulating securities in Canada, with each province having its own securities commission or administrator responsible for i...
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Securities
In the world of finance, transferable certificates of ownership play a crucial role in the investment landscape. These certificates represent ownership of various investment ...
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Secondary Offering Financing
Secondary offering securities refer to the stocks or bonds issued by a company during a secondary offering, which is approved by the TSX or TSX Venture Exchange. The value o...
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Seat
In the world of finance, the term "seat" refers to a coveted membership on a stock exchange. In the past, investment dealers or brokerages would purchase a seat on the excha...
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Screening
As we delve into the world of finance, it is important to understand the concept of screening. This involves searching for mutual funds or stocks that align with specific cr...
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Same Store Sales
In the realm of finance, the term "same store sales growth" refers to the increase in revenue at retail stores or restaurants that have been in operation for at least one ye...
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Sales
In the world of finance, we often come across terms such as "sales" and "revenues". These terms essentially refer to the services and products that a company offers and the ...
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RSI
The Relative Strength Index, or RSI, is a valuable tool for predicting market trends and identifying potential turning points. It is based on the observation that a stock's...
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Rights
A fundamental concept in finance, rights issue refers to a temporary arrangement that grants existing shareholders the opportunity to purchase additional shares from the iss...
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Reverse Takeover (RTO)/Backdoor Listing
In the world of finance, a reverse takeover or backdoor listing is a complex process involving the issuance of securities by a listed company to parties who are transferring...
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Reverse Stock Split
In the world of finance, companies sometimes use a technique known as reverse stock split. This involves decreasing the number of available shares and combining their value ...
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Revenue
A vital aspect of any successful business is its capital, which refers to the total amount of funds raised and utilized. This includes all sources of money, such as investme...
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Return on Capital (return on invested capital)
When discussing a company's financial health, we often refer to its after-tax income, which is the earnings remaining after all taxes have been paid. This can be calculated ...
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Retractable Security
A redeemable security is one that includes an option for the holder to demand its redemption from the issuer, based on predetermined terms and conditions. This means that th...
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Responsible Registered Trader
The Selection Committee appoints a Registered Trader who serves as the market maker for a particular security. This individual is responsible for ensuring that there is a mi...
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Resistance
In the world of finance, we often encounter a concept known as resistance levels. These levels can prove to be quite challenging for a stock to surpass, as they can be influ...
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Research and Development (R&D)
In the world of finance, it is crucial to understand the costs associated with developing new products and services. These costs can be divided into two major categories: ta...
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Relative Position Report
The TSX report is a monthly ranking of trading activity amongst the Participating Organizations and Members of the TSX Group. It provides a comparison of each entity's perfo...
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Relative Dividend Yield
When assessing the profitability of a stock, it is important to consider its dividend yield, which is the annual dividend payment divided by the stock's current price. This ...
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REIT (real estate investment trust)
Real Estate Investment Trusts, commonly referred to as REITs, are a unique type of corporation that focuses on investing in real estate. One of the key benefits of REITs is ...
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Registered Traders
A financial expert hired by a securities company to ensure sufficient liquidity in the securities market. This is achieved by actively bidding or offering for specific secur...
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Redeemable Security
Let's delve into the concept of a callable security. This financial instrument contains a provision that grants the issuer the ability to redeem and pay off the security at ...
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Record Date
The record date is a crucial factor in determining when a stockholder is eligible to receive dividends. It is the specific date on which the stock must be in the investor's a...
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Real-Time Quotes
As a seasoned finance professional, I am sure you are familiar with the concept of stock trading prices. But have you heard of the term "real-time quotes"? These are reports...
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Rally
In the world of finance, inflation refers to a steady increase in the overall price level of goods and services in an economy. This can also pertain to the rising value of a...
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Quoted Market Value (QMV)
Market capitalization is a term commonly used in the world of finance. It refers to the total value of a company's outstanding shares. This is calculated by multiplying the ...
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Quote
As we delve into the world of finance, it's important to understand the significance of the last trade, as well as the current bid and asked prices. These numbers provide va...
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Quiet Period
The Quiet Period, which usually lasts for 25 days after an IPO, is a period of silence where all individuals involved in the IPO are restricted from discussing the company's...
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Put/Call Ratio
Let's delve into the concept of put/call ratio, which is derived by dividing the put trading volume by the call trading volume. A put/call ratio of 0.74 indicates that for e...
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Push-Out
In the world of finance, a push-out is a term used to describe a specific aspect of a stock split. This occurs when new shares are distributed to the registered holders of o...
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Public Float
Welcome to our lesson on the concept of "public float," a crucial term in the world of finance. Simply put, the public float refers to the total number of shares of a compan...
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Proxy Statement
A proxy statement is a document provided to stockholders during the process of soliciting shareholder votes. It serves as a means of communication from the corporation to it...
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Program Trading
Computer programs have become an integral part of trading in the financial market. These programs generate signals that guide traders in making decisions. With the use of te...
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Profit Margin
Profit margin, or the net income after taxes divided by total revenue, is a crucial metric in evaluating a company's financial health. It reflects the percentage of each dol...
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Profit
Profit, a term often used in finance, refers to the amount remaining for business owners after expenses have been deducted from revenues. Gross profit, on the other hand, is...
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Pro Forma Earnings
In the realm of finance, there exists a term known as "adjusted earnings", which refers to the earnings of a company without factoring in certain expenses. These expenses ca...
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Private Placement
A private offering refers to the sale of a security to a select group of buyers, with restrictions on its resale. This term is often used in the context of Best Efforts and ...
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Priority
In the world of finance, priority plays a crucial role in determining the sequence of order executions for a stock. This is especially important when multiple orders are vyi...
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Principal Trade
A Participating Organization, in the realm of finance, engages in trades with its clients. This typically involves either buying from or selling to the clients. Such trades ...
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Price-Earnings (P/E) Ratio
A key metric in evaluating a stock's value is the price-to-earnings ratio, or P/E ratio. It is calculated by dividing a company's stock price by its earnings per share for th...
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Price to Sales Ratio (p/s)
In finance, we often use the ratio of latest share price divided by 12-month sales per share to measure a company's valuation. This calculation helps us understand the marke...
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Price to Earnings Ratio (p/e)
Understanding financial terms is essential for anyone interested in the world of business. One important concept is the price-to-earnings ratio, or P/E ratio. This is calcula...
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Price to Book Ratio (p/b)
As we delve into the world of finance, one key term to understand is the price-to-book ratio. This ratio is calculated by dividing the latest share price by the book value s...
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Price Gap
A price gap refers to a phenomenon in the stock market where the opening price of a stock is significantly different from its closing price the previous day. This usually oc...
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Preferred Shares
This type of stock does not give voting rights. Preferred shares are a type of stock that a company issues, offering shareholders a fixed dividend from their earnings. Unlik...
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Post-Offering Shares
The term 'outstanding shares' refers to the total number of shares of a company's stock that are currently held by shareholders. This number can fluctuate depending on variou...
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Portfolio
A crucial aspect of finance is the concept of portfolio, which refers to the collection of securities held by an individual or institution. This encompasses a diverse range ...
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Percent to Double
Understanding the potential profitability of an options trade is essential for any investor. One way to assess this is by calculating the "percent to double" value. This fig...
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Payment for Order Flow
A broker's referral fee, also known as a payment received by a market maker, is a form of compensation for directing a stock trade to that particular market maker. This ince...
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Pay Date
The ex-dividend date is when a stock begins trading without the dividend or split amount included. When it comes to stocks, it is essential to understand the concept of a pa...
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Partial Fill
This can happen when there is not enough liquidity in the market to fulfill the entire order at once. Let me introduce you to the concept of partial fill in finance. A part...
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Par Value
Understanding the concept of a security's nominal face value is crucial in the world of finance. It refers to the stated value of a security at the time of its issuance. This...
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P/E
The abbreviation P/E stands for price-to-earnings ratio, a fundamental metric in stock analysis. It is calculated by dividing a company's share price by its earnings per sha...
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Oversold
The concept of market prices experiencing a rapid and significant decline is commonly referred to as a "steep decline". This phenomenon can be observed when the prices of va...
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Overbought
Market prices can sometimes experience a sharp and rapid increase, which can be concerning. This phenomenon is known as a steep and quick rise in market prices. It can indica...
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OTC Foreign Trading
In the world of finance, there exists a term known as OTC or over-the-counter foreign trading. This concept falls under UMIR Rule 6.4 (e), which allows for trades to take pl...
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Order Number
A unique identifier, consisting of either eight or nine digits, that is assigned to each and every order that is entered into the system. This number serves as a means of id...
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Option Type
A call or put contract is a type of financial instrument that allows an individual to buy or sell an asset at a specified price within a certain time period. A call contract ...
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Option Series
An option contract is a type of financial contract that gives an individual the right, but not the obligation, to buy or sell a specific security at a predetermined price wi...
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Option Holder
An option holder is an individual who holds the right to exercise an option contract within its specified time frame. This privilege gives the holder the power to buy or sel...
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Option Cycle
Options expiration refers to a predetermined time period during which a particular type of options contract reaches its maturity date. This is typically set as a monthly occ...
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Option Class
Understanding the concept of a "series" in finance is crucial for any investor. A series refers to all options of the same type, whether it be calls or puts, that have the sa...
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Operating Margin
Operating income divided by sales is known as the operating margin. This ratio measures the profitability of a company's operations and indicates how much profit is generate...
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Operating Income
In the world of finance, the term "operating income" refers to the profit a company earns from its core business operations, after deducting all expenses except income taxes...
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Open-End Investment Fund
An open-end fund is a type of investment fund that consistently offers its securities to potential investors and is always prepared to buy back its securities. These securit...
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Open End Mutual Fund
As savvy investors, it is important to understand the process of buying and selling shares in a fund. When purchasing shares, we do so directly from the fund. Similarly, whe...
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Open
The opening price of a security is a crucial aspect of its trading day. It refers to the initial value at which a stock is available for purchase or sale. This price can eit...
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Ontario Securities Commission
The Ontario Securities Commission (OSC) is the governing body responsible for overseeing and enforcing the Securities Act and Commodity Futures Act in Ontario. It plays a vi...
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On-Stop (O/S) Order
An on-stop order is a valuable tool in the world of trading that allows investors to strategically plan their trades. This type of order is placed with the purpose of execut...
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Odd Lot
An 'odd lot' refers to a block of stock that is less than 100 shares. In such cases, the specialist or market maker typically adds a premium to the trade. This results in th...
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Normalized Earnings
In the world of finance, understanding a company's profits can be a complex task. It's important to consider both cyclical effects and unusual events, such as one-time write...
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Non-Resident Order
In the realm of finance, there exists a unique term known as "special term order." This term comes into play when a trade involves one or more individuals who are not Canadi...
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Non-Operating Income
When discussing income within the realm of finance, it is important to understand that there are various types of income that a company can generate. One specific type is kno...
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Non-Operating Expenses
As we delve into the world of finance, it's important to understand the concept of expenses that are not directly related to the core operations of a company. These expenses...
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Non-Net Order
In the world of finance, there exists a unique concept known as a "special-term order". This refers to a situation where both the buyer and seller agree to directly settle a...
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Non-Exempt Issuer
In the world of finance, a listed issuer holds a unique position, subjected to special reporting rules. This means that they are required to disclose financial information a...
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Non-Certificated Issues
One important aspect in finance is the use of electronic books by transfer agents to record transactions, instead of relying on physical notes. This allows for easier and mo...
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New Listing
A recently introduced security has been included in the exchange's list of tradable issues. Along with this, a new listing date has been assigned....
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New Issuer Listing - Spin-Off
In the world of finance, a common occurrence is a reorganization where a newly listed company acquires a business division or assets from another company. This transaction r...
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New Issuer Listing - Plan of Arrangement
A knowledgeable professor of finance would explain that an issuer listing can occur when a corporation undergoes a plan of arrangement, a type of corporate reorganization th...
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New Issuer Listing - IPO (Initial Public Offering)
When a company decides to go public, it offers its securities to the general public through an IPO. This is done through a prospectus, which outlines the company's financial...
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New Issuer Listing
When a new issuer's securities are made available for trading, there is a process that occurs concurrently. This process is known as listing and it involves the Exchange ens...
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Net Worth
Equity, a term widely used in the world of finance, refers to the difference between what a company or individual owns and what they owe. In other words, it is the value rem...
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Net Change
As you may already know, the closing price and the last traded price are two important factors in the stock market. The former refers to the final price at which a stock is ...
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Naked Writer
An option writer is a trader who sells an option contract without owning an underlying security. This strategy can be used to generate income, as the writer collects the pre...
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Must-Be-Filled (MBF) Order
Pre-market orders are a crucial aspect of stock trading when dealing with expiring options. These orders are placed before the market opens, ensuring a complete fill at the ...
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Multijurisdictional Disclosure System (MJDS)
The disclosure system that supports Canadian-U.S. cross-border securities offerings, issuer bids, and takeover bids was put into place to alleviate the burdensome duplicatio...
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Moving Negative Divergence
When multiple indicators, indexes, or averages do not align in displaying consistent trends, it is known as a divergence. This can occur due to various factors such as marke...
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Moving Average Convergence/Divergence (MACD)
The MACD indicator is a useful tool for analyzing stock market trends. It measures the convergence and divergence of moving averages and can give insight into future price m...
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Moving Average (MA)
A fundamental concept in finance is the moving average (MA) of a stock's closing price. This is the average closing price over a specified time period - for example, the 10-...
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Most Recent Quarter (MRQ)
As of the end of the most recent fiscal quarter, which is the designated period for reporting a company's financial performance, we can gain insight into its financial healt...
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Mortgage REIT
A REIT, or real estate investment trust, is a company that primarily invests in real estate loans. These loans can be for a variety of properties, such as commercial buildin...
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Momentum Stocks
Investors often show preference towards companies with a price-to-sales ratio of above 10, or a price-to-earnings ratio of around 35. This indicates that the company's stock...
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Momentum Analysis
When searching for stocks in the stock market, it is typically beneficial to look for those with a strong uptrend, indicating high relative strength. Additionally, keeping a...
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Model
Stock selection strategy involves using preset criteria to identify stocks with a high potential for growth. These criteria have been proven to be effective through historic...
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Mixed Lot or Broken Lot
In the world of finance, an odd lot is an order that does not fit into traditional board lot sizes. This means it can consist of any number of shares, rather than being a mu...
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Minimum Guaranteed Fill (MGF) Orders
As an expert in finance, it's important to understand the concept of guaranteed orders and how they work. When an order is guaranteed, it means that it will be fully execute...
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Minimum Fill Order
In finance, a term order with a minimum fill condition will only enter the market if its initial fill meets the minimum share requirement. For instance, let's say an order i...
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Material Change
In the world of finance, it is important to understand the concept of material change. This refers to any significant alteration in an issuer's affairs that could impact the...
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Master Limited Partnership (MLP)
MLPs, or master limited partnerships, function similarly to REITs, but with a broader scope in terms of industry investments. Unlike REITs, which are restricted to real esta...
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Market On Close Order
A market on close order is a strategy used by institutions to purchase or sell a large number of shares at the market price when the market closes. This method is often util...
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Market Not Held Order
A market order grants the floor trader the authority to execute an investor's order at their discretion, based on their assessment of the market conditions. In cases where t...
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Market Capitalization
The current market value of a company's shares can be calculated by multiplying the latest stock price by the number of shares outstanding. This number represents the total ...
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Market Cap
Market cap is a key indicator of a company's size and value in the stock market. It is often used to compare companies in the same industry. A fundamental term in finance is...
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Market
A fundamental concept in finance is the marketplace, where individuals and businesses come together to trade goods and services. This dynamic environment serves as the found...
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Margin Call
A margin call is a request for a client to add funds or assets to a margin account. This may happen when a purchase exceeds the account's value or when the value of the held...
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Long-Term Investments
A crucial element found on a balance sheet is the representation of investments made in other companies or entities. This can include stocks, bonds, or other forms of ownersh...
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Long Tail
A 'long tail' refers to a scenario in which the market opens and experiences a downturn due to the influence of sellers. However, buyers come in and drive the market back up...
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Lockup Period
The period following an initial public offering (IPO), commonly lasting 180 days, during which insiders are restricted from selling their shares. This is intended to prevent...
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Listing Application
A key aspect of going public is the completion and submission of a document known as the listing application. This document is crucial as it provides the exchange with detai...
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Listed Stock
Listed stocks refer to the shares of a company that are publicly traded on a stock exchange. In order to be listed, an issuer must pay fees to the exchange and comply with i...
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Liquidating Order
A liquidating order is a crucial step in closing out an open futures or options contract. It involves either selling a purchased contract or purchasing a sold contract. This...
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Liabilities
In short, liabilities represent the financial obligations that must be fulfilled within a specified time. Welcome to our discussion on finance related terms. Today, we will...
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Leveraged Buy Out
Leveraged buyout is a strategy where a company acquires a publicly traded corporation by utilizing borrowed funds. This approach allows the acquiring company to use a small ...
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LEAPS (Long-Term Equity Appreciation Participation Securities)
Let's delve into LEAPS, which are long-term stock options with expiration dates exceeding one year. These provide investors with the opportunity to buy or sell stocks at a p...
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LEAP
A crucial aspect of understanding options is recognizing the difference between long-term and short-term options. A long-term option refers to a put or call option that has ...
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Last Sale Price
When discussing securities, it is important to understand the concept of Market On Close (MOC) eligibility. This refers to securities that are eligible to be included in the...
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Jitney Order
As a knowledgeable finance professor, I want to share with you the concept of "execution and clearing" in the context of stock exchanges. This refers to the process of one m...
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Issuer Status
An important aspect of finance is understanding the trading status of issuers, whether they are currently listed or have been delisted. There are four types of issuer status...
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Issued and Outstanding Securities
In the realm of finance, a term that is often used is 'issued and outstanding securities'. This term refers to the scenario where the number of securities that have been iss...
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Issue Status
In the world of finance, there are certain terms that are crucial to understand, such as trading status. This refers to the current state of a class or series of securities ...
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Issue
When a company makes its securities available for purchase, this is known as an issuance. These securities can take the form of stocks, bonds, or other financial instruments...
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IPO Financing
When we talk about the dollar value of IPO securities, we are referring to the total worth of the securities issued during an initial public offering, as approved by either ...
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Investor Relations
In corporate finance, there exists a vital function that brings together various disciplines such as finance, marketing, and communications. This function serves the purpose...
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Investment Fund
Welcome to our lesson on closed-end funds. These investment vehicles allow investors to purchase a security that represents a portfolio with a specific investment strategy. ...
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Investment Dealer
Investment dealers are an integral part of the securities industry, providing valuable services to both individual and institutional clients. These firms employ investment a...
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Investment Counsellor
A finance expert, compensated through fees, dedicated to offering valuable insights and research to high-value investors in the realm of investments....
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Investment Capital
As a financial expert, I would like to discuss the crucial concept of initial investment capital for launching a business. This capital is typically composed of inventory, e...
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Investment Bank
A key player in the financial world, often found in the form of a stock brokerage firm, specializes in various corporate activities such as initial public offerings (IPOs), ...
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Investment Advisor
A professional working in the field of investments, employed by an investment dealer, providing valuable guidance to clients and executing trades on their behalf, specifical...
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Inventory
When discussing the components of a company's inventory, we often refer to raw materials, work in process, and finished goods. These refer to the various stages of productio...
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Intraday
Stock trading that is monitored in timeframes shorter than one day is known as intraday trading. This type of trading involves buying and selling stocks within the same day,...
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International Securities Identification Number (ISIN)
An essential aspect of the finance world is the identification of securities. This is done through a universal standard, which involves a two-letter country code from ISO 61...
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Intermarket Surveillance Group (ISG)
The ISG, a committee of 31 exchanges across the globe, boasts representation from all major stock exchanges. Through shared surveillance and investigative information, ISG m...
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Interest Coverage
One fundamental aspect of a company's financial health is its ability to fulfill its debt obligations. This is measured by the interest coverage ratio, which compares a co...
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Intangibles
Soft assets are intangible assets that are not physical in nature. They include patents, trademarks, copyrights, and goodwill. These assets are valuable to a company as they...
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Institutional Ownership
Pension funds, mutual funds, banks, and other financial entities hold shares in companies. These shares represent ownership in the company, entitling shareholders to a porti...
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Insiders
Insiders, in the world of finance, are individuals who possess valuable information about a company or entity, which has a significant impact on its stock price. Usually, th...
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Insider Ownership
When discussing finance, it is important to understand the concept of insider ownership. This refers to the number of shares held or influenced by individuals within a compa...
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Insider
In the world of finance, it is important to understand the concept of insiders. These individuals are not only the directors and senior officers of a company, but also those...
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Inside Information
Insider trading refers to the illegal practice of buying or selling a company's stock based on non-public information. This information, often confidential and related to th...
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Initial Public Offering (IPO)
An initial public offering (IPO) is when a company offers its shares to the public for the first time. This is a significant event in the life of a company, as it provides a...
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Industry Group
In the world of finance, it is important to understand the concept of business relations. This refers to the interconnectedness of companies within the same industry or sect...
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Indicative Calculated Closing Price (ICCP)
The Indicative Calculated Closing Price (ICCP) is an important aspect of the Market On Close (MOC) feature on the TSX electronic call market. It serves as a preliminary indi...
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Indicated Annual Dividend/Distribution
Understanding the concept of dividend and distribution policies is crucial for anyone interested in finance. In simple terms, the indicated annual dividend/distribution (IAD...
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Index Option
Let's take a closer look at index options, a type of financial derivative whose underlying security is an index. For instance, the S&P 100 (OEX) is a popular example. As a t...
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Income Trust
An income trust, also known as an income fund, is a type of trust that holds both debt and equity of an underlying active business or assets generating royalties. This struc...
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Income Stock
Let's talk about a type of security that has proven to be a reliable investment in the world of finance: the dividend-paying stock. This type of stock not only provides a st...
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Income Statement
A company's financial performance is often measured through its income statement, which details its sales and expenses over a specific period. This document provides a compr...
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Income From Continuing Operations
Operating income, also known as earnings before interest and taxes (EBIT), is a financial term used to measure a company's profitability before considering interest expenses...
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Income Deposit Security (IDS)
A popular financial product known as an exchange-traded fund (ETF) combines a subordinated debt security and common stock to create a tax-efficient method of distributing a ...
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Improving the Market
When an order is placed in the market that results in a higher bid price or a lower offering price, it is known as an improvement. This leads to a decrease in the spread bet...
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Implied Volatility
Implied volatility is a fundamental concept in finance that measures the level of uncertainty in a stock's price. Unlike historical volatility, which looks at past performan...
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If, As & When Issued Trading
When a company offers new securities for trading, it is referred to as an "initial public offering" or IPO. However, trading can occur before the official closing of the pro...
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Hypothecation
Asset pledging is a common practice in the world of finance. It refers to using assets such as stocks, bonds, or real estate as collateral for a loan. This means that the bo...
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Head & Shoulders Pattern
A reversal signature pattern, also known as a head and shoulders pattern, is a common and reliable trend in finance. It can be either negative or positive, depending on whet...
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Halted Issue
A halt in trading refers to a temporary cessation of buying and selling of securities listed by a company. This can be initiated by the stock exchange, its agent, or request...
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Guaranteed Investment Certificate (GIC)
A Guaranteed Investment Certificate (GIC) is a deposit instrument offered by trust companies or banks that requires a minimum investment and offers a predetermined rate of i...
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Growth Stocks
In the world of finance, it is crucial to have a thorough understanding of the term "consistent annual earnings and sales growth." This refers to a company's ability to main...
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Growth Stock
Let's discuss the stocks of firms that have experienced above-average growth in recent times and are projected to maintain their upward trend. These companies are often cons...
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Gross Profit
When it comes to understanding the financial health of a company, it is crucial to grasp the concept of profit. In simple terms, profit is the amount of money a company earn...
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Gross Margin
In the world of finance, a key ratio used to measure a company's profitability is the gross profit margin. This ratio is calculated by dividing the gross profit, which is th...
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Goodwill
Shareholder's equity refers to the portion of a company's assets that belong to its shareholders. However, there are times when this equity exceeds the value of the company'...
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Good-Till-Date (GTD) Order
In the world of finance, there exists a type of order known as a "GTD order." This order will remain active until it is either executed or until a specific date, at which po...
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Good-Till-Cancelled (GTC) Order
A GTC (Good Till Cancelled) order is a type of order in the financial market that stays active until it is executed or until 90 calendar days have passed since its entry, wh...
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Good Till Canceled
A brokerage transaction where the order remains valid until it is either fulfilled or withdrawn. This type of order typically requires re-confirmation twice a year for its v...
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Good til Canceled
A buy or sell limit order is an instruction to buy or sell a specific security at a specified price or better. It differs from a market order, where the transaction is execu...
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Good For the Day
A buy or sell limit order is a type of order that will only be executed if the specified price is reached. This order will expire at the end of the trading day if it is not ...
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Good Delivery
When discussing securities, it is important to understand the concept of good delivery. This refers to a security that is in proper form to transfer ownership. In order to c...
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GICS
As a finance professional, it is important to have a solid understanding of the Global Industry Classification Standard (GICS). This universal system provides consistent de...
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Geographic Funds
Mutual funds are a type of investment that pools money from multiple investors to purchase a variety of securities, such as stocks and bonds. One type of mutual fund is know...
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Generally Accepted Accounting Principles (GAAP)
The Financial Accounting Standards Board is an independent self-regulating organization that sets accounting rules and procedures. These guidelines provide a framework for b...
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GARP
When it comes to investing in stocks, one strategy that has been proven effective is growth at a reasonable price. This involves purchasing stocks that have a price/earnings...
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Gain-on-sale accounting
This process is known as discounting. One fundamental concept in finance is discounting, where a company assesses the potential future profits of a trade made in the presen...
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Future Inflation Gauge
The Consumer Price Index (CPI), a widely used economic indicator, is a private-sector index with a base year of 1992. It is designed to forecast the trajectory of inflation ...
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Funds From Operations (FFO)
In the realm of real estate investment trusts (REITs), Funds from Operations (FFO) serves as a more reliable metric than earnings. FFO takes into account the depreciation of...
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Fundamental Analysis
As a finance professor, it is important to understand how to evaluate stocks. This involves examining various factors such as earnings, sales, profit margins, and other fina...
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Fully Diluted
Let's discuss the concept of shares outstanding, which includes options that have been granted but not yet exercised. This refers to the total number of shares that a compan...
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Full Service Broker
A stockbroker is a financial professional who provides investment advice and other specialized services that are typically not offered by discount brokers. They are highly k...
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Frequency
Let's delve into the world of finance and explore the concept of frequency. It simply refers to the specific time period in which data is measured, such as intraday, daily,...
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Freeze
A trading halt occurs when a TSX order fails to meet predetermined parameters, resulting in a pause in stock activity. This temporary interruption allows for the market to r...
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Free Cash Flow
Cash flow from operations is the income generated by a company's regular business activities. This can be calculated by subtracting the capital expenditures and dividends pa...
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Flying Plateau
A flying plateau is a significant formation that occurs in the stock market when a stock experiences a sharp upward movement. Instead of immediately selling off, strong stoc...
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Flow-Through Shares Financing
As a finance professor, it's important to understand the concept of flow-through shares. These shares are issued in accordance with a transaction approved by either the TSX ...
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Floating Rate Security
A floating rate security is one whose interest rate or dividend is influenced by specific market indicators. These rates are often tied to an administered rate, such as the ...
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Float Quoted Market Value (QMV)
Market capitalization is calculated by multiplying the last trading price of a company's stock by the total number of shares that are publicly available. This metric is used...
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Financials
In the realm of finance, there are several key documents that provide insight into a company's performance and financial health. These include the operating statement, which...
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Financial Leverage Ratio
Understanding the leverage ratio is crucial in analyzing a company's financial health. Simply put, it is the measure of a company's debt compared to its equity. A ratio of o...
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Fill or Kill (FOK) Order
In finance, "FOK" refers to a tradable limit order that aims to maximize stock trading upon entry. However, any unfilled volume will be immediately canceled or "killed". Thi...
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Filing Statement
A filing statement is a document that a publicly traded company submits to report significant changes in its operations. It serves as a disclosure of important information t...
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Fed
The Federal Reserve Board, also known as the Fed, is the central banking system of the United States. It was established in 1913 to provide a stable monetary and financial s...
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Fallen Angel
An initial public offering (IPO) refers to the process of a private company going public and selling its shares to the general public. The aftermarket, also known as the seco...
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Fair Value
A stock's worth is determined by specific factors chosen by the individual. When a stock's price surpasses its fair value, it is considered overvalued....
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Extraordinary Items
Unusual and infrequent events, such as earthquake-related losses, are charged separately from regular expenses in finance. These are known as extraordinary items and are typ...
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Extra Dividend / Distribution
When we discuss dividends or distributions, we often refer to the regular payments that issuers make to their shareholders. However, there is also the concept of extra divid...
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Extended Hours Trading
After regular trading hours, trades can still be executed through electronic communication networks or other alternative trading systems. These trades, known as after-hours ...
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Exponential Moving Average (EMA)
Let's discuss the concept of exponential moving averages, which are an important tool in finance. Essentially, these moving averages give more weight to recent data points c...
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Exempt Issuer
A listed issuer is a company that has fulfilled the necessary requirements for being listed on a stock exchange, as stated in Section 502 of the Listing Requirements Manual....
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Exchangeable Security
A security with an exchange feature allows the holder to exchange their shares for securities of a different issuer, typically a subsidiary, as outlined in the terms of the ...
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Exchange Offering Prospectus (EOP)
A prospectus is a document that outlines the details of a company's offering to the public. However, there is a specific type known as a "stock exchange prospectus" that is ...
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Ex-Dividend
After a company distributes its profits to shareholders in the form of dividends, the next day is known as the "ex-dividend" date. This means that individuals who purchase t...
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Ex-D Date
The ex-dividend or distribution date is a crucial concept to understand in the world of finance. It refers to the date when a buyer of a stock is not entitled to the upcomin...
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Ex Right
As we dive into the world of finance, it's important to understand the concept of ex rights shares. When purchasing these shares, one must be aware that they do not include ...
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European-Style Option
In finance, we often come across the term "expiration date." This refers to the date on which an option can be exercised. Options are financial instruments that give the hol...
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Escrowed Securities
In the realm of finance, we often come across the term "restricted securities". These refer to the securities of an issuer that are not readily available for trading due to ...
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Equity Volume
As a professor of finance, it is essential to understand the concept of trading volume. This refers to the total number of shares that are bought or sold in a particular tra...
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Equity Value
One of the fundamental concepts in finance is the concept of market capitalization. This refers to the total dollar value of volume traded for a specific period, calculated ...
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Equity Price
Share price, also known as stock price, is the cost of one share of a company's stock. It is determined by the supply and demand of the stock in the stock market. Share pric...
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Equity Option
This is known as a call or put option. An essential tool in the world of finance is an option contract. It allows the holder to buy or sell a set number of stock shares at ...
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Equity Financing
As we delve into the world of finance, it is important to understand the concept of market value. In the context of securities, this refers to the dollar value of those issu...
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Equities
Common stocks give voting rights and fluctuate with the company's performance, while preferred stocks offer fixed dividends and priority in liquidation. Understanding the dif...
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EPS
Earnings per share, or EPS, is a commonly used financial metric that measures a company's profitability. It is calculated by dividing the company's net income by the total n...
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Energy or Royalty Trust
Greetings, students. Today, we will be discussing investment vehicles in the oil and gas sector. Specifically, we will be focusing on conventional oil and gas royalty trusts...
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Emerging Markets
A fundamental concept in finance is the classification of countries into developed and developing categories. Developing countries are those that have not yet reached the le...
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ECN
An Electronic Communication Network (ECN) is a technology that allows investors to trade stocks and other financial instruments electronically. It is predicted that ECNs wil...
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EBIT
Earnings before interest and taxes, more commonly referred to as operating income, is a key financial measure used to evaluate a company's profitability. It represents the i...
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Dutch Auction
One approach to distributing shares in an initial public offering (IPO) is through the process of bidding, where an individual states their desired price for a specific numb...
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Downtrend
As a seasoned professor in finance, it is essential to understand the concept of stock price and its fluctuations. Stock price refers to the current value of a company's sha...
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Downtick
A trade is considered to be on a downtick when the most recent transaction takes place at a price that is lower than the previous one. This is an important concept to unders...
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Double Bottom/ Double Top
Reversal patterns are a vital concept in finance. They occur when there is a repeated decline or advance to a specific level, typically within 3% of the previous occurrence....
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Dividends
Dividends are a form of distribution of profits to shareholders, typically occurring on a quarterly basis. This payment can be made in either cash or stock, depending on the...
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Dividend/Distribution Record Date
The ex-dividend date is a crucial term in finance, as it marks the date by which an investor must be registered as a holder of an issue in order to receive the dividend or ...
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Dividend/Distribution Payable Date
The payment date, also known as the distribution date, is the designated date set by the issuer for the disbursement of dividends or distributions to shareholders. This date...
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Dividend
Dividends are a crucial part of an issuer's equity that is directly paid to its shareholders. These payments are typically made on common or preferred shares and are determi...
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Discount Broker
A discount broker is a type of stockbroker that offers lower commission fees compared to full-service brokers. However, unlike full-service brokers, they do not provide inve...
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Discount
One fundamental concept in finance is the distinction between a bond's face value and its current market price. The face value represents the amount that the bond will be wo...
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Direct Stock Purchase Plan (DSP)
A corporate program enabling individuals to directly purchase shares or fractional shares from the company on a recurring basis is known as a direct stock purchase plan. Thi...
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Diluted Earnings (a.k.a. fully diluted earnings)
Understanding the concept of diluted earnings per share is crucial in finance. This metric calculates a company's earnings per share by taking into account all common shares...
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Demand
Consumers' desire, ability, and willingness to purchase goods or services make up the concept of demand. This key factor is influenced by both income and price, which are th...
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Delivery
Futures contracts involve the exchange of goods or cash at a predetermined future date. This can be achieved through the tender and receipt of the underlying commodity or th...
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Delisted Issuer
This means that the issuer's securities are no longer available for trading on a particular stock exchange. As a professor of finance, it is crucial to understand the conce...
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Delisted Issue
When a security is no longer listed on the Exchange, it is considered to have a delisted status. This can occur for various reasons, such as a company going bankrupt or merg...
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Delist
Delisting refers to the process of removing a security from a stock exchange's official list. This can occur for various reasons, such as the security no longer existing, th...
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Delayed Delivery Order
Let's discuss a unique term in the world of finance - delayed settlement. This term refers to an agreement between two parties, the buyer and seller, in which they both unde...
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Deferred Revenue
A crucial term in finance, deferred revenue refers to a balance sheet liability that represents payments received for services or products that have not yet been delivered. ...
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Deferred Load
When it comes to mutual funds, one important factor to consider is the sales charge, also known as the back-end load. This is the fee paid when selling a mutual fund and it ...
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Deferred anything
A key concept in finance is the balance sheet liability, which represents expenses that are reflected on the income statement but have yet to be paid. This is an important c...
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Debt Volume
Debt instruments refer to financial contracts that represent a borrower's obligation to repay a lender. When trading these instruments, the total dollar amount exchanged is ...
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Debt Value
As finance professionals, it is essential to understand the concept of market value, which refers to the total dollar value of volume traded within a specific time frame. Th...
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Debt to Equity (Total)
One important financial ratio to understand is the debt-to-equity ratio. This is calculated by taking the total debt, both short and long term, and dividing it by the total ...
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Debt to Equity (Long Term)
When examining a company's financial health, it is important to understand the concept of leverage, which is the use of borrowed funds to finance operations. One way to meas...
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Debenture
A debenture is a type of long-term debt instrument, commonly used by corporations or governments. Unlike secured debt, which is backed by collateral, debentures are unsecure...
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Days Sales Outstanding
Accounts receivable turnover ratio is a crucial metric in finance that reflects the efficiency of a company's collection process. It measures the number of times a company c...
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Day Low
This is often used as an indicator of market sentiment As a finance professor, I often come across the term "intraday low" in my lectures. It refers to the lowest price at w...
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Day High
As a financial professional, you may come across the term "intraday high" quite often. This refers to the highest price at which a security has been traded during a single t...
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Daily Price Limit
Futures contracts, a fundamental tool in financial markets, have a specific limit on how much their prices can change in one trading session. This limit, known as the daily ...
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Cyclical Stock
A stock is a representation of ownership in a company, and its value can fluctuate based on various factors, including economic conditions. In certain industry sectors, such...
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Cum-Dividend/Distribution Date
When discussing finance, it's important to understand the concept of the ex-dividend/distribution date. This is the day before the ex-d date, or the last day that securities...
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Cum Rights
As a shareholder, it's essential to understand the concept of rights in relation to your investments. When you purchase shares cum rights, you have the privilege of receivin...
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Cum Dividend
In the world of finance, understanding the terms 'dividend', 'cum dividend', and 'ex dividend' is crucial. When an investor purchases shares that are cum dividend, they have...
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Covered
When a writer holds the underlying security and writes an option on a one-to-one basis with the stock, it is known as writing a covered option. This can be either a short ca...
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Cost of Sales
In the world of finance, understanding the cost of materials and labor is crucial to the success of any business. This cost directly affects the production of goods and serv...
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Correction
A market correction is characterized by a decline of 10% or more from its peak. It is a common and natural occurrence in the financial world, often influenced by external fa...
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Corporation or Company
A corporation, as defined by provincial or federal laws, is a distinct form of business structure with its own legal identity. Its shareholders hold ownership of the corporat...
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Convertible Security
In the world of finance, we often come across the term "convertible security". This refers to a type of security, such as bonds, debentures, or preferred shares, that can be...
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Convertible Bond
A convertible bond is a type of financial instrument that allows the holder to exchange it for shares of stock. This unique characteristic provides investors with the flexib...
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Contrarian
A knowledgeable professor of finance understands the concept of value investing, which involves searching for stocks that are undervalued in the market. This means that the ...
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Continuous Disclosure
Corporate disclosure refers to a company's responsibility to disclose important information to the general public, regardless of whether it is positive or negative. This inc...
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Consumer Stock
Consumer staples, also known as non-cyclical stocks, refer to the equity of companies that specialize in producing goods that are essential to our daily lives. These products...
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Consolidated Short Position Report
In the world of finance, it is important to have a clear understanding of various terms and regulations. One such term is a consolidated report, which provides a comprehensi...
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Consensus Estimate or Rating
When analysts make individual earnings forecasts or give buy/sell ratings, the average of these numbers is known as the consensus estimate. This estimate is used as a benchm...
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Conference Call
A conference call, organized by a corporation, aimed towards analysts, held shortly after releasing their earnings report....
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Complete Fill
An order is considered fully executed when it has traded all of the specified volume. This is known as a filled order, where the buyer and seller have come to an agreement on...
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Closing Transaction
A crucial step in the world of finance is closing out a futures or options contract. This involves finalizing an existing open contract, and it is an essential process for a...
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Closed-End Investment Fund
A closed-end fund, also known as an investment trust, is a company that issues a set number of securities. These securities are then traded on a stock exchange or in the ove...
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Client Order
A retail customer's purchase request placed through a Participating Organization is known as an order. This is a common term used in the world of finance, specifically in th...
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Clearing Number
In the world of finance, the trading number of a clearing Participating Organization, also known as a Member, plays a crucial role. This unique number is assigned to each or...
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Clearing Day
In the realm of finance, a trade clearing and settlement refers to the process of finalizing transactions between buyers and sellers. This crucial step takes place on busine...
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Chat Room
A real-time message area is a designated platform where discussions and information related to a specific topic can be shared and accessed in real-time. This allows for insta...
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Changes in Stock List
As we delve into the world of finance, it is important to understand the various modifications that can occur in the list of tradable issues on an exchange. These modificati...
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Certificate
A security's physical document which serves as evidence of ownership, typically issued in the form of a bond or stock. This document is of utmost importance in the world of ...
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Cash Settlement
An option contract can be settled in two ways: delivery of the underlying shares or a cash payment based on the difference between the strike or exercise price and the under...
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Cash Dividend / Distribution
A cash dividend is a type of payment made to shareholders by a company, typically from its profits. This distribution is made in the form of cash, as opposed to other forms ...
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Cash & Cash Equivalents
As a finance professor, it is important to understand the concept of liquid assets, which refers to cash in bank and securities that can be easily converted to cash within a...
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Cash
An important concept in finance is a "cash settlement." This refers to a condition placed on equity orders, which mandates that the trade must be completed either on the sam...
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Carry Trade
Understanding the concept of profiting on interest rate differentials involves recognizing the opportunity to borrow funds at a lower short-term rate and then lending them o...
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Capped Indices
An important concept in finance is market capitalization, which refers to the total value of a company's outstanding shares. In the world of indices, there are certain crite...
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Capitalization Weighted Index
It is crucial to understand the significant role that large companies play in determining the movement of stock index prices. As the largest players in the market, their act...
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Capitalization or Capital Structure
In the world of finance, the term "capitalization" refers to the total dollar amount of funds invested in a company. This includes various forms of investment, such as debt,...
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Capitalization Effective Date
In finance, the term "capitalization change" refers to an alteration in the total amount of a company's shares outstanding. This can happen due to various reasons such as st...
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Capitalization Change
As we delve into the world of finance, it is crucial to understand the concept of a corporate action. Simply put, a corporate action refers to any alteration in the quantity...
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Capital Stock
In the world of finance, there exists a term that encompasses all forms of ownership in a company: shares. This includes both preferred shares, which have a higher claim on ...
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Capital Pool Companies
The TSX Venture Exchange Capital Pool Company (CPC) program is a distinctive listing opportunity that brings together seasoned management teams with a track record of securi...
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Capital Lease Obligations
Lease obligations refer to the financial commitments a company has made in regards to a lease agreement. These obligations are recorded as a liability on the balance sheet, ...
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Capital Gain or Loss
The capital gain or loss is the outcome of selling assets that fall under the category of capital assets according to federal income tax laws. These assets can include stock...
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Capital
A fundamental concept in economics, capital encompasses the tangible assets utilized in the production of goods and services. In the realm of investment, capital extends bey...
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Buy-In
In the world of finance, it is crucial for brokers to understand the concept of failing to deliver securities on the settlement date. This occurs when a broker is unable to ...
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Buy Side Analyst
As a financial expert, I often encounter reports from analysts who work for mutual funds and other institutional investors. These reports are not typically accessible to the...
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Business Trust
A trust is a type of entity that typically generates cash flows from a single operating company, as opposed to an investment fund which generates income from a variety of as...
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Business Day
On any weekday, except for holidays recognized by law, we are available to discuss finance-related terminology. This includes terms such as assets, liabilities, and equity, ...
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Bulletin Board System
In the world of finance, stocks that do not meet the criteria for listing on NASDAQ are instead traded through Pink Sheets. However, it is important to exercise caution when...
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Bull Trap
False signals in finance are deceptive indications that a stock or index price has changed direction and is now on an upward trend. However, as knowledgeable investors, we m...
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Broker or Brokerage Firm
In the world of finance, a securities firm or registered investment advisor plays a crucial role in connecting investors with the stock market. As a broker, they act as the ...
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Breakout Tests
As a finance professor, I often discuss stocks that test their breakout prices. When a stock breaks out to new highs or out of consolidations, it often retraces to test the ...
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Box Spread
Option arbitrage is a strategy in which a risk-free profitable position is created. This involves setting up two spreads, one with call options and the other with put option...
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Bounce
When a stock reaches a point of support, such as an old high, a moving average, or a trend line, it can experience a sharp rise in price. This can be compared to dropping a ...
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Bought-Deal Underwriting
In the world of finance, there exists a type of underwriting known as "firm commitment." In this arrangement, the brokerage firm takes on the role of principal and assumes t...
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Bought Deal
An investment bank or underwriter plays a unique role in the securities market. Instead of just facilitating transactions, they directly acquire securities from the issuer a...
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Bottom Line
Understanding after-tax earnings is crucial in the world of finance. It refers to the final figure at the bottom of an income statement, also known as net income or profit. ...
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Booked Orders
Limit orders are a commonly used term in finance that refers to orders that are not executed immediately upon being placed. They are also referred to as outstanding orders. ...
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Book to Bill Ratio
In the realm of finance, the book to bill ratio is a crucial metric used to measure a company's new orders in comparison to their shipments during a specific period. A value...
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Book
This record includes the price and quantity of each order. In the world of finance, there exists a valuable tool known as the order book. This electronic record meticulousl...
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Blue Chips
In the world of finance, we often come across the term "large, stable companies". These are organizations that have a strong financial standing and have been in the market f...
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Blue Chip Stocks
Imagine investing in the stocks of well-established and reputable companies that have a proven track record of consistent dividend payments and possess other desirable inves...
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Block Trade
A transaction of a stock consisting of 10,000 or more shares is known as a block trade. This type of trade is typically executed outside of the open market and involves larg...
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Black-Scholes Model
Options are contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time period. Whe...
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Bid Size
Understanding the concept of "bid size" is crucial in the world of finance. It refers to the total number of shares that an investor is willing to purchase for a particular ...
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Better-Price-Limit Orders
In the world of finance, we often come across terms like "better-priced buy/sell orders" and "limit prices". But what do these terms actually mean? Well, simply put, a bette...
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Best-Efforts Underwriting
Let's discuss a form of underwriting known as agency underwriting. In this scenario, an investment firm serves as a middleman, agreeing to make its best efforts to sell a ne...
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Bear Trap
An erroneous indication that suggests a decline in the upward movement of a stock or index, when in reality, it has not changed direction. This phenomenon is known as a fals...
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Basing
When a stock stays within a certain range and forms recognizable patterns, such as a cup with handle or a saucer base, it is said to be consolidating. This is a crucial phas...
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Balance Sheet
A company's balance sheet is a crucial financial statement that provides a snapshot of its assets and liabilities on a specific date, usually the end of a fiscal quarter. Th...
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Backtesting
One important aspect of financial analysis is evaluating the outcomes of using specific screening criteria. This involves simulating a scenario where the screen was applied ...
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Back-End Load
A mutual fund's sales charge, also known as deferred load, is a fee paid when selling the fund. This fee is typically a percentage of the total amount sold and is used to co...
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Averaging Down
When we purchase additional units of a security at a lower price than our initial investment, we are practicing a strategy called "averaging down." This approach is used to ...
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Averages and Indices
In finance, we often use statistical tools to gauge the current state of the stock market or economy. These tools take into account the performance of various components, su...
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Average Daily Volume
One important term in the world of finance is the average daily trading volume, which refers to the number of shares that are bought and sold on a daily basis during a speci...
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At-The-Open
When a stock begins trading for the day, its initial trading price is known as the opening price. This price can either be higher, lower, or the same as the closing price fr...
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At The Close
When the market closes, the last trade price of a stock is known as the closing price. It holds significant value in our trading as it reveals crucial information about the ...
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Assets
Assets are the tangible and intangible possessions of a company or individual, comprising of cash, investments, physical assets, and property. These valuable resources are r...
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Ask Size
When considering investments, it is important to understand the aggregate size in board lots of the most recent ask to sell a particular security. This term refers to the to...
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Ask Price
When you are purchasing a stock, you will be quoted a price which is known as the 'Bid Price'. This is the amount that you will need to pay in order to acquire the stock. It...
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Ask or Offer
A key factor in the stock market is the ask price, the minimum amount at which an individual is ready to sell a security. It is one half of a stock quote, along with the bid...
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Anonymous Trading
Welcome to our lesson on the concept of 'Permits Participating Organizations' in the world of finance. This term refers to the ability of organizations to conceal their true...
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Analyst
In the world of finance, there exists a profession known as an analyst. These knowledgeable individuals are often employed by brokerage houses and are responsible for provid...
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American-Style Options
An important concept in finance is the idea of options that can be exercised at any time during their lifetime. These options, commonly referred to as open options, provide...
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American Depositary Receipt (ADR)
A stock certificate that is listed on a U.S. stock exchange and represents ownership of shares in a foreign company. This type of certificate is known as an American Deposit...
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All-or-None Order
A term in finance known as "all or none" refers to an order that must be fulfilled in its entirety, otherwise the trade will not occur. This means that the entire amount of ...
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All or None
One crucial instruction that should be given to your broker when placing a buy or sell order is an "all-or-none" instruction. This directive ensures that your order will eit...
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After-Hours Trading
Stock trading can still occur outside of regular trading hours when the major stock exchanges are closed. This is known as after-hours trading, where investors can buy and s...
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