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
A security’s nominal face value.
An order receives a partial fill when it trades only part of its total committed volume.
Participating Organizations (POs) and Members of TSX
Firms that are entitled to trade through the facilities of TSX. However, only POs are also involved in all aspects of the securities business, including underwriting new issues and other financings, and assisting companies in the initial public offering (IPO) process.
Participating Organizations (POs) and Members of TSX Venture Exchange
Firms entitled to trade through the facilities of TSX Venture Exchange. However, only POs of TSX and Members of TSX Venture Exchange are permitted to act as sponsors for listed issuers or issuers proposing to be listed on TSX Venture Exchange.
Low-priced speculative issues of stock selling at less than $1.00 a share.
Holdings of securities by an individual or institution. A portfolio may include various types of securities representing different companies and industry sectors.
The maximum number of futures or options contracts any individual or group of people acting together may hold at one time.
Power, Pipeline & Utility Trusts
A type of income trust. They are investment vehicles that have underlying businesses that are utilities, power generation companies, or pipeline companies.
A class of share capital that entitles the owner to a fixed dividend ahead of the issuer’s common shares and to a stated dollar value per share in the event of liquidation. It usually does not have voting rights, unless a stated number of dividends have been omitted.
An option contract’s price.
A session from 7:00 a.m. to 9:30 a.m. (ET) when orders can be entered into the Toronto Stock Exchange’s systems. Tradable orders will be queued until after 9:30 a.m. when the market opens.
Price-Earnings (P/E) Ratio
A common stock’s last closing market price per share divided by the latest reported 12-month earnings per share. This ratio shows you how many times the actual or anticipated annual earnings a stock is trading at.
A trade when a Participating Organization is either buying from, or selling to its client.
If there are several orders competing for a stock at the same price, a priority determines when one of these orders will be filled before any other at this price. Priority is based on the time at which the order is received into the system.
The private offering of a security to a small group of buyers. Resale of the security is limited. See Best Efforts and Bought Deal Underwriting.
Private Placement Financing
The dollar value of privately placed securities issued in accordance with a TSX or TSX Venture Exchange approved transaction. The price is determined in accordance with the policies of the TSX Company Manual or TSX Venture Corporate Finance Manual. The number of securities is the actual number issued. The composition of the financing could take the form of units comprised of multiple securities.
Professional and Equivalent Real-Time Data Subscriptions
The total number of professional accesses to real-time products of TSX and TSX Venture Exchange, as well as non-professional accesses that are priced the same or at a minimal discount to the professional access rate for the same product.
What is left over for the owners of a business after all expenses have been deducted from revenues. Gross profit is the profit before corporate income taxes. Net profit is the final profit of the business after taxes have been paid.
A legal document describing securities being offered for sale to the public. It must be prepared in accordance with provincial securities commission regulations. Prospectus documents usually disclose pertinent information concerning the company’s operations, securities, management and purpose of the offering.
The number of issued and outstanding shares of a company, excluding shares held by persons who, individually or in conjunction with other persons, hold 20% or more of the issuer’s voting securities.
A push-out occurs during a stock split when new shares are forwarded to the registered holders of old share certificates, without the holders having to surrender the old shares. Both the old and new shares have equal value.
A put option is a contract that gives the holder the right to sell a specified number of shares at a stated price within a fixed time period. Put options are purchased by those who think a stock may decline in price.