A type of mutual fund designed to earn dividends and capital gains by investing in equities from around the world.
A type of mutual fund that provides international diversification through worldwide investments.
A federal tax (currently 5%) collected by businesses and paid by consumers, that is applied on the sale of most goods and services in Canada. See also “harmonized sales tax (HST).”
Debt security traded over the counter (OTC) and issued by federal, provincial and municipal governments to raise money to fund public projects. Although governments do not typically pledge specific assets, they tend to have high credit ratings and don’t often default, so this type of bond is usually considered low risk.
The market value of all goods and services produced by a country’s economy during one year. In the case of Canada, this includes the work products of foreign citizens living in Canada but excludes those of Canadian citizens working outside the country.
An equity investment strategy focused on a firm’s prospects and profits, rather than its current stock price.
Deposit certificate that provides a predetermined rate of interest for a set term in exchange for a minimum investment. There can be penalties for redeeming these products early, such as forfeiting any interest earned.
A tax applied on the sale of most goods and services that combines the federal GST and the provincial sales tax. HST is applicable in New Brunswick, Nova Scotia, Newfoundland and Labrador, Ontario and Prince Edward Island. See also “goods and services tax (GST).”
A pool of capital that is lightly regulated and given flexibility to use aggressive investment strategies.
A strategy to reduce the risk of loss caused by market fluctuations to retain more of a portfolio’s value. Managers often use derivative securities (whose value depends on the value of another asset) as hedging instruments.
A measure of the transactional rate of return that accounts for all cash flows and changes in a security’s value during the time that the asset or portfolio of assets has been held.
Listing of individual or family income versus spending; used to determine how much someone can invest.
A type of security that possesses features that are typical of both bonds and common shares.
Impact investing is an investment strategy that aims to generate specific beneficial social or environmental effects in addition to financial gains.
A form that an individual or company files each year to the Canada Revenue Agency (and Revenu Québec for Quebec residents) that states the amount of income they have made and whether they owe tax or are eligible for a refund of any of the tax they have already paid. See also “Canada Revenue Agency.”
A mutual fund constructed from investments that match a market index. Index funds have lower fees than actively managed funds and are diversified.
Sustained increase in prices of goods and services. See also “deflation.”
The first issuance of a company’s shares to the public, usually through the listing on an exchange. All shares bought in an IPO are bought directly from the company. They are traded among investors thereafter.
A person or entity with access to knowledge about a company’s operations that has not been made available to the public.
Trading in securities using non-disclosed or non-public information.
The cost to the buyer of an insurance policy. See also “derivatives premium” and “investment fund premium”.
A leverage ratio that represents a company’s ability to pay the interest on its outstanding debt.
Income that a borrower pays a lender for lending money, usually through fixed-income securities.
The cost of borrowing money, expressed as a percent. The direction of interest rates is set and influenced by the activities of central banks.
The risk that changes in market interest rates will decrease the value of an interest-bearing security. When interest rates rise, the value of fixed-income securities falls. When interest rates fall, the value of fixed-income securities rises.
Investment funds that invest outside Canada.
When someone uses money with the intent of making further profit.
A firm responsible for hiring investment managers and distributing its funds in return for management fees from the mutual funds it controls.
A firm that acts on behalf of clients to buy and sell investment products. A dealer can also act as principal. Also called a brokerage firm or securities house.
A portfolio of investments, such as a mutual fund, giving investors access to a pool of securities.
What an investor pays when the price of a fund exceeds its net asset value. See also “derivatives premium” and “insurance premium”.
The length of time an investor has to grow assets prior to a target date, such as retirement. The term “investment horizon” has now been broadened to refer to the time needed to achieve return objectives.
The Canadian national self-regulatory organization for the securities industry responsible for setting and enforcing rules governing proficiency, business and financial conduct of dealer firms and their registered employees. It also sets and enforces market integrity rules covering trading activity in Canadian equity markets.
An investor’s level of understanding of investments and their characteristics, such as risk and return.
A person responsible for building and managing an investment fund’s portfolio.
A mission statement governing how an investment fund is managed.
A diversified collection of securities, that can include stocks, bonds, money market securities and derivatives.
