In order to achieve success in the stock market you must be able to speak the language of the stock market. Please use our supplied glossary of terms to become better acquainted with these terms so that you may gain a better understanding of the market world
Companies listed on TSX Venture Exchange that meet higher asset, market value and shareholder distribution requirements than those classified as venture companies. This classification is related to TSX Venture Exchange Tier 1 status.
A securities firm is classified as an agent when it acts on behalf of its clients as buyer or seller of a security. The agent does not own the security at any time during the transaction.
Alberta Securities Commission (ASC)
The provincial regulatory agency responsible for overseeing the capital market in Alberta.
Options that can be exercised any time during their lifetime. These are also known as open options.
An order that must be filled completely or the trade will not take place.
A publication, including financial statements and a report on operations, issued by a company to its shareholders at the company’s fiscal year-end.
Permits Participating Organizations to voluntarily withhold their true broker identities when entering orders and trades on TSX trading systems.
The simultaneous purchase of a security on one stock market and the sale of the same security on another stock market at prices which yield a profit.
Ask or Offer
The lowest price at which someone is willing to sell the security. When combined with the bid price information, it forms the basis of a stock quote.
The aggregate size in board lots of the most recent ask to sell a particular security.
Everything a company or person owns, including money, securities, equipment and real estate. Assets include everything that is owed to the company or person. Assets are listed on a company’s balance sheet or an individual’s net worth statement.
The notification to the seller of an option by the clearing corporation that the buyer of the option is enforcing the terms of the option’s contract.
When the price of the underlying equity, index or commodity equals the strike price of the option.
Averages and Indices
Statistical tools that measure the state of the stock market or the economy, based on the performance of stocks, bonds or other components. Examples are the S&P/TSX Venture Composite Index, the S&P/TSX Composite Index, the Dow Jones Industrial Average and the Consumer Price Index.
Buying more of a security at a price that is lower than the price paid for the initial investment. The aim of averaging down is to reduce the average cost per unit of the investment.