Glossary

2

20-20 Technologies

Toronto symbol TWT, is a leading maker of computer-aided design, sales, engineering and manufacturing software for the interior design and furniture industries.

3

3M Company

New York symbol MMM, is one of the world's largest industrial companies. It makes over 50,000 products in six main areas: Industrial and Transportation; Health Care; Display and Graphics; Consumer and Office; Safety, Security and Protection; and Electro and Communications.

A

Aastra Technologies

Toronto symbol AAH, develops and markets products and systems for accessing communication networks, including the Internet.

ABB

New York symbol ABB, is a major Swiss-based provider of power technologies for utilities. It also makes automation systems and robotics that help increase plant productivity in a wide variety of industries.

Accord Financial

Toronto symbol ACD, operates mainly in the factoring business in Canada and the U.S. Factoring is the purchase of a company's accounts receivable at a discount. Accord profits by collecting the receivables. Besides factoring, Accord also offers other asset-based lending services.

ACI Worldwide

NASDAQ symbol ACIW, sells electronic payments systems software and services to many of the world's largest financial institutions.

Adobe Systems

NASDAQ symbol ADBE, makes software that lets computer users easily create, edit and share electronic documents in the popular Acrobat PDF format. It also makes software that graphic designers use to create print publications and web pages.

Aeropostale

NASDAQ symbol ADBE, makes software that lets computer users easily create, edit and share electronic documents in the popular Acrobat PDF format. It also makes software that graphic designers use to create print publications and web pages.

AGF Mutual Funds

AGF mutual funds are a family of over 50 mutual funds offered by AGF Management Limited. These funds cover a wide variety of regions, asset classes and investment styles and can have both internal and external managers.

Aggressive Investing

Aggressive investing is a style of investing that involves attempting to maximize returns through investment in high risk stocks and investment products. While higher risk investments can be a strong component of growth, they can also be a big component of a loss, so portfolio exposure to such investments should be limited.

Agilent Technologies

New York symbol A, makes testing systems that help manufacturers improve the quality of electronic products such as cellphones.

Agrium

Toronto symbol AGU, is a leading producer of fertilizers and crop protection products.

AIC Mutual Funds

AIC mutual funds are a selection of funds offered by AIC Limited. Most of the funds follow what the managers see as a value investing strategy.

AIM Trimark Investments

Recently renamed as Invesco Trimark, this group of fund offers a wide variety of investment options for investors. These include both mutual funds and private fund pools.

Alberta Energy

formerly Toronto symbol AEC, was a leading producer of oil and natural gas in western Canada. The company merged with PanCanadian Energy in 2002 to form EnCana Corp.

Alcan

formerly Toronto symbol AL, is a leading producer of aluminum. The company was taken over by Rio Tinto in 2007.

Alcoa

New York symbol AA, is one the world's largest producers of aluminum.

Algonquin Power Income Fund

Toronto symbol APF.UN, has interests in 41 hydroelectric facilities - four in Ontario, 12 in Quebec, 13 in New York State, nine in New England, one in Alberta, one in New Jersey and one in Newfoundland. Algonquin also has interests in five natural gas-fired plants, a 99-megawatt wind plant, one energy-from-waste plant and two biomass facilities in Canada and the U.S., and 17 water distribution and wastewater treatment facilities in the U.S.

Alimentation Couche-Tard

Toronto symbol ATD.B, is the largest convenience store operator in Canada, with over 2,000 stores. It also has more than 3,000 U.S. stores in 28 states.

Alliant Energy

New York symbol LNT, supplies electricity and natural gas to customers in Wisconsin, Iowa, Minnesota and Illinois.

Amazon.com

NASDAQ symbol AMZN, is the leading bookseller on the Internet, as well as a leading video and music seller. It also has numerous other store categories, including electronics, computer games, toys and tools. Through Amazon Services, the company also offers programs that let sellers market on its web sites.

Ameren

New York symbol AEE, provides electricity and natural gas to customers in Illinois and Missouri.

American Depository Receipt

An investment unit for foreign companies that trade on a US stock market. These units can represent fractions of shares, whole shares, or multiple shares in the foreign company. They permit investors to purchase foreign shares on U.S. exchanges without the complications of foreign transactions.

American Express

New York symbol AXP, is one of the world's biggest financial services companies. Best known for its American Express charge and credit cards, the company gets most of its revenue from fees it charges merchants when cardholders purchase goods and services. It also provides travel-related services, including travelers cheques.

American Woodmark

NASDAQ symbol AMWD, is the third-largest U.S. maker of kitchen and bath cabinets.

Amerigo Resources

Toronto symbol ARG, Toronto, processes copper from the tailings (waste rock) from Chile's El Teniente, the world's largest underground copper mine.

Ameriprise Financial

New York symbol AMP, provides brokerage, mutual funds and wealth management services to individuals and institutions.

Andrew Peller

Toronto symbol ADW.A, is Canada's second-largest producer of wines (after Vincor Canada). Other products include premium beers (under the Granville Island brand) and home winemaking kits.

Anheuser-Busch

formerly New York symbol BUD, is the world's largest brewer, and accounts for 50% of the U.S. beer market. Acquired by InBev in 2008.

Apache

New York symbol APA, explores for and produces oil and gas, mostly in North America. It also has operations in the UK, Argentina, Australia and Egypt.

Apple

NASDAQ symbol AAPL, makes computers under the Mac name. It also makes consumer electronic devices such as the iPod and iPhone.

Arbitrage

The act of simultaneously purchasing a stock on one stock market and then selling it on another. The difference between the bid and ask prices on the two exchanges may yield a profit to the investor.

ARC Energy Trust

Toronto symbol AET.UN, produces oil and gas in western Canada.

Archer Daniels Midland

New York symbol ADM, is one of the world's largest agricultural companies. Its five largest products are protein meal (animal feed), vegetable oil, ethanol, cocoa products and wheat flour. It sells these products to food processors and industrial companies.

Arian Silver

Toronto symbol AGQ, is active in silver exploration and development in Mexico. The company is headquartered in the United Kingdom.

Arkansas Best

NASDAQ symbol ABFS, provides less-than-truckload shipping services, which combine freight from multiple customers into a single vehicle. Freight carried by the company includes food, textiles, apparel and furniture.

ASP (alkaline Surfactant Polymer) Enhanced Oil Recovery

This involves flooding wells with a chemical mixture when water flooding is no longer effective. The alkali in the mixture penetrates deep into a formation, where it reacts with the acidic components of crude oil and frees trapped oil globules. The polymer increases the viscosity or thickness of the injection fluid to make it more manageable.The net result this process increases the oil stocks accessible in the well.

AT&T

New York symbol T, provides traditional local and long-distance telecommunication services in 22 states. It also provides wireless services nationwide.

Atlantic Tele-Network

NASDAQ symbol ATNI, owns 80% of Guyana Telephone and Telegraph Company. The rest comes from its wireless interests in the Caribbean and its expanding telecom interests in the United States.

Autodesk

NASDAQ symbol ADSK, is a leader in 2D and 3D design software for the manufacturing, building and construction and media markets. Autodesk's computer-assisted-design software provides customers with tools to visualize, simulate and analyze a product's performance early in the design process. That saves time and money, and enhances quality.

Averaging In

Averaging in refers to a stock investing strategy that applies a dollar cost averaging principle to the investment of lump sums. It does this by spreading out purchases over a period of time.
For instance, suppose an investor wants to purchase $50,000 in stocks, but feesl uncomfortable doing so all at once. The investor might resolve to average in by investing $12,500 every six months over two years. However, in the short term, an averaging-in program will improve financial results only if the investor happens to begin it when the market is headed down.

B

Baffinland Iron Mines

Toronto symbol BIM, continues to focus on the development of its Mary River iron ore deposits on Baffin Island in Nunavut, Canada.

Balanced Fund

Balanced funds are mutual funds which hold both stocks and bonds.

Bank Of America

New York symbol BAC, is one of the world's largest providers of financial services. It recently acquired mortgage specialist Countrywide Financial and brokerage firm Merrill Lynch.

Bank Of Montreal

Toronto symbol BMO, is Canada's fourth-largest bank by assets.

Bank Of Nova Scotia

Toronto symbol BNS, is Canada's third-largest bank by assets.

Bard

C.R.

Bargain Stocks

Bargain stocks are typically stocks trading at low prices that don't reflect their value in terms of fundamentals such as earnings, cash flow and low debt. They may also carry undervalued assets on their balance sheets, hold large patent portfolios or spending high amounts on research and development.

Baxter International

New York symbol BAX, makes medical equipment through three main divisions. Medical Delivery makes intravenous equipment and systems; BioScience makes various vaccines and drugs; and Renal makes dialysis equipment.

Bayou Bend Petroleum

Toronto symbol BBP, explores for and produces natural gas in the shallow water shelf area of the Gulf of Mexico.

BCE

Toronto symbol BCE, provides local and long distance telephone services in Ontario and Quebec. It also operates a nationwide wireless service.

Bear Market

A bear market is a market that is in decline.

Beckman Coulter

New York symbol BEC, makes lab equipment that doctors and medical researchers use to detect substances in bodily fluids.

Beta

Beta is a measure indicating the volatility of a stock relative to the market. A beta of lower than one indicates that the stock is less volatile than the market, while a beta of greater than one indicates that the stock is more volatile than the market as a whole.

Birchcliff Energy

Toronto symbol BIR, is focused on oil and gas exploration, development and production in northwestern Alberta's Peace River Arch area.

Black Monday

Black Monday is the name given to October 19, 1987, the day in the 1987 stock market when the Dow Jones Average dropped 22% in a single day.

Black Tuesday

The 1929 stock market is memorable for one date in particular. On October 29, 1929, the Dow Jones Average fell 12%. That was one of the largest one-day drops in stock market history. This crash is considered to be one of the triggering events of the Great Depression.

Blue Chip Stocks

Blue chip stocks are stocks in well-established companies that have demonstrated their financial strength through both good times and bad. They are typically dividend paying stocks. They are also considered to be less risky based on their historical patterns. The term derives from the game of poker, in which the blue chip is the highest denomination.

BMO Mutual Funds

BMO mutual funds are a family of Canadian and international mutual funds offered by the Bank of Montreal.

BMTC Group

Toronto symbol GBT.A, is one of the largest retailers of furniture, electronic goods and household appliances in Quebec through its affiliates Brault & Martineau Inc. and Ameublements Tanguay.

Boeing

New York symbol BA, is the world's second-largest maker of commercial aircraft, behind Europe's Airbus.

Bombardier

Toronto symbols BBD.A and BBD.B, is the world's third-largest maker of passenger aircraft, after Boeing and Airbus. It also makes passenger railcars.

Bond Funds

Bond funds (or bond mutual funds) are mutual funds that invest in a portfolio of corporate and government bonds. Your return will equal the current weighted interest rates on the bonds held. In other words, if the fund buys bonds when they yield 4.5%, as many long-term bonds do today, your current yield will be 4.5%, minus expenses such as fund management fees. Bond funds can suffer capital losses, however.

Bond Mutual Funds

Many bond mutual funds built great performance records in the last decade. This, though, was a function of the trend in interest rates; when rates fall, bond prices go up. Interest rates are low right now, but could move upward over the next few years in response to fears of growing inflation. This is another way of saying that bond prices could fall.
When bonds yielded 10%, perhaps it made some sense to buy bond mutual funds and pay a yearly MER of, say, 2%. Now that bond yields are down closer to 4%, it makes a lot less sense.
The bond market is highly efficient and we doubt that any bond fund can add enough value to offset its management fees. But in addition, investing in a bond fund exposes you to the risk that the manager will gamble in the bond market and lose money.
Bonds are attractive for predictable income, and as an offset to the stocks in your portfolio. But it's cheaper to buy bonds directly than to do so through a bond fund. If you want capital gains, buy stocks or stock-market mutual funds.

Breakwater Resources

Toronto symbol BWR, operates three producing zinc mines: the Myra Falls mine in B.C., El Mochito mine in Honduras, and El Toqui in Chile.

Briggs & Stratton

New York symbol BGG, is the world's largest maker of engines for lawnmowers. It also makes other home and garden products, including pressure washers and snow blowers.

Broadridge Financial Services

New York symbol BR, offers services to the investment industry in three main areas: investor communications; securities processing; and transaction clearing.

Buckeye Partners

New York symbol BPL, is a Master Limited Partnership that transports gasoline and jet fuel through pipelines.

Bull Market

A bull market is a market that is going up.

C

Calian Technologies

Toronto symbol CTY, operates in two areas: providing engineering, healthcare and other skilled professional personnel to clients on a contract basis, and producing communications systems.

Call Option

A call option offers an investor the opportunity to buy a particular security at a specific price within a specific time frame. These options will be profitable when the investment in question goes up, as the holder of the call option can purchase the security at a price less than the prevailing market price.

Cameco

Toronto symbol CCO, is the world's largest uranium producer.

Campbell Soup

New York symbol CPB, is the world's largest maker of canned soups. It also makes sauces and canned pasta, cakes and cookies and vegetable juices.

Canada Bread

Toronto symbol CBY, is Canada's second-largest maker of fresh and frozen breads, rolls and bagels, behind Weston Bakery. It also makes specialty pastas and sauces. Main brands include Dempster, Tenderflake and Olivieri.

Canada Pension Plan

The Canada Pension Plan, or CPP, is the name for the Canadian national social insurance program. The program pays out based on contributions, and provides income protection for an individual or their survivors in the instance of retirement, disability or death. Since 1999, the CPP has been legally permitted to invest in the stock market.

Canadian General Investments

Toronto symbol CGI, is a closed-end fund that mainly invests in shares of Canadian companies.

Canadian Imperial Bank Of Commerce

Toronto symbol CM, is Canada's fifth-largest bank by assets.

Canadian National Railway

Toronto symbol CNR, operates a freight rail network across Canada, and in parts of the United States.

Canadian Pacific Railway

Toronto symbol CP, transports freight over a rail network between Montreal and Vancouver. In the United States, subsidiaries connect CP Rail's Canadian lines to major hubs in the Midwest and Northeast. Alliances with other railways extend its reach to Mexico.

Canadian REIT

Toronto symbol REF.UN, focuses on acquiring properties in prime locations, usually near major metropolitan centres. That attracts strong tenants, maintains high occupancy rates and delivers a reliable stream of rental income.

Canadian Tire

Toronto symbol CTC.A, operates stores that sell automotive, household and sporting goods. It also operates PartSource auto parts stores, Mark's Work Wearhouse casual clothing stores and gas stations.

Canadian Utilities

Toronto symbol CU, is a leading distributor of natural gas and electricity in Alberta.

Canadian Wealth Advisor

Canadian Wealth Advisor is an eight-page newsletter, published monthly. The newsletter deals with 'safe money' investments: mutual funds, income trusts, conservative large-capitalization stocks, RRSPs, RRIFs, GICs, and tax-advantaged investments. The newsletter also looks at financial planning, tax planning, investment bargains (and rip-offs, too) and many other issues for safely making more money. You can subscribe on-line at www.canadianwealthadvisor.ca, or by calling 1-800-270-0287.

CanAlaska Uranium

Toronto symbol CVV, holds 19 uranium projects in the Athabasca Basin region of Saskatchewan.

Canon

New York symbol CAJ, is a leading maker of business machines such as copiers and printers, cameras and optical products such as chips and specialty lenses for TV sets and medical equipment.

Capital Gains

Capital gains can occur when an investor sells an asset. To calculate capital gains, the total of the ACB and selling costs are subtracted from the proceeds of the sale. If the remainder is positive, the investor has a capital gain. If the remainder is negative, the investor has a capital loss.

Capital Preservation

Capital preservation in an investment strategy that involves not drawing down the value of initial investments. As a retirement strategy it involves living solely off the income generated by the investment portfolio.

Capital Structure

See Capitalization.

Capitalization

Capitalization is the total value of all debt, common stock, preferred stock, contributed surplus and retained earnings of a particular company.

Cara Operations

formerly Toronto symbol CAO, operates casual dining restaurants, including Swiss Chalet (chicken) and Harvey's (hamburgers). Cara became a private company in 2004 after a successful takeover by a group of insiders.

Carbon Fiber

A carbon fiber is a long, thin strand of material composed mostly of carbon atoms. The carbon atoms are bonded together in microscopic crystals that make the fiber very strong for its size. Several thousand carbon fibers are twisted together to form a yarn, which may be used by itself or woven into a fabric. The yarn or fabric is combined with epoxy and molded to form various composite materials. Carbon fiber-reinforced composite materials are used to make aircraft and spacecraft parts, racing car bodies, golf club shafts, bicycle frames, fishing rods, automobile springs, sailboat masts, and many other components where light weight and high strength are needed.

Cash Flow

Cash flow is a company's inflow of cash minus its outflow of cash. It's calculated by adding net income plus non-cash charges such as depreciation, depletion and amortization.

Cedar Fair

New York symbol FUN, is a Master Limited Partnership that owns amusement parks, water parks and hotels.

Celtic Minerals

Toronto symbol CME, has as its main asset a 100% interest in the Kingurutik property, 85 kilometers northeast of Vale Inco's Voisey's Bay nickel mine and property in Labrador. In addition, Celtic holds other interests in the area plus other nickel prospects in Quebec and Newfoundland.

Centerra Gold

Toronto symbol CG, operates the Kumtor mine in Kyrgyzstan.

Central Europe & Russia Fund

New York symbol CEE, is a closed-end fund that invests mostly in larger cap stocks from Russia and central Europe.

CGI Group

Toronto symbol GIB.A, provides information technology and business process services to a wide range of business and government clients.

Chesapeake Energy

New York symbol CHK, is the third-largest U.S. domestic natural gas producer after BP and ConocoPhillips.

Chevron

New York symbol CVX, is the second-largest integrated oil company in the United States after ExxonMobil. Production accounts for about 80% of its earnings. The remaining 20% comes from refineries and retail gas stations.

Chile Fund

New York symbol CH, invests primarily in Chilean stocks.

Churchill Corp.

Toronto symbol CUQ, offers a range of construction, general contracting, maintenance, insulation, fireproofing, electrical and power-line construction services to clients in the resource extraction, industrial, utility and power-generation industries throughout western Canada.

Churning

The excessive selling and buying and selling of stocks in a client's account by a broker, for the purpose of generating commissions and without taking into account the client's investment objectives.

CI Investments

CI Investments is a money management firm that has been offering services to Canadians since 1965. It offers a wide variety of investment options that includes mutual funds, segregated funds, structured products, asset allocation programs and other alternative investments.

CI Mutual Funds

CI mutual funds are one of the investment products offered by CI investments. They feature a wide variety of investment options based on region, industry, asset class and investment style.

CIBC Mutual Funds

CIBC mutual funds are a full range of mutual funds offered by CIBC. They include one of the largest selections of index funds in Canada.

Cimarex Energy

Toronto symbol XEC, is an oil and gas explorer and producer primarily focused in western Oklahoma, Kansas, the upper Gulf Coast areas of Texas and South Louisiana, the Permian Basin area of West Texas, plus the Gulf of Mexico.

Cinram

formerly Toronto symbol CRW, is one of the world's leading makers of pre-recorded CDs, DVDs, and audio and video cassettes for film studios, record companies and software publishers. Converted into an income trust in 2006.

Cintas

NASDAQ symbol CTAS, sells and rents uniforms to businesses in the United States and Canada. It also supplies a variety of other business services. These include first aid kits, fire extinguishers and smoke alarms, and document storage and shredding services.

Class 1 Office Properties

Class I means class 'industrial'. It refers to 19th and early 20th century light industrial buildings that are converted and restored to "brick and beam" contemporary office and retail space. These properties typically feature high ceilings, natural light, exposed beams, interior brick and hardwood floors. Class I buildings typically have high occupancy rates.

Claymore Investments

Claymore Investments Inc is an investment firm principally involved in the field of exchange traded funds and closed-end funds. Claymore ETFs avoid traditional market cap indices and instead track indices for their specific market strategies.

Closed End Funds

Closed-end funds are mutual funds that offer only a limited and fixed number of units to investors. These units trade on stock markets rather than being redeemed by the fund, and as a result can trade at a premium or discount to the net asset value of the securities held by the fund.

Commodity Investment

The term 'commodity' is generally used to refer to raw or primary products such as iron ore, corn, cocoa, sugar, crude oil, copper and so on, for which a trading market has developed. A commodity investment can consist of stock in a commodity producer or a direct purchase of commodity futures.

Compton Petroleum

Toronto symbol CMT, produces natural gas in Alberta.

Computer Modelling

Toronto symbol CMG, is a computer software technology and consulting company specializing in the oil and gas industry. Its software provides engineers with oil and gas reservoir simulation, and three-dimensional visualization and animation.

ConAgra Foods

New York symbol CAG, makes a wide variety of packaged foods such as pasta, popcorn, whipped and canned tomatoes and sauces.

Conservative Investing

Conservative investing is an investment strategy that involves a focus on lower-risk, predictable and stable income flows. This strategy typically involves the purchase of blue-chip stocks and other low-risk investments.

Convertible

Convertible refers to a preferred share, bond or debenture that can be exchanged for common shares of the underlying company. The terms of the conversion are detailed with each security. In some cases, companies can initiate the conversion themselves if it is financially advantageous to do so.

Covered Call

Covered call writing is where you sell a call option against a stock you currently own. You receive cash for selling the call, but are obligated to sell the stock at a fixed price (the "strike price") if the holder of the call exercises the option. In other words, in exchange for being paid the price of the option, you give up any increase in the stock above the strike price.

CP Ships

formerly Toronto symbol TEU, is a leading container shipping company. The company was taken over by Hapag Lloyd in 2005.

CPP

See Canada Pension Plan.

Crescent Point Energy Trust

Toronto symbol CPG.UN, produces oil and gas in western Canada.

Crude Oil

The basic form of petroleum pumped from the ground is known as crude oil. Stocks involved and connected with crude oil include drilling and refining, as well as exploration and industry manufacturing.

Currency Risk

Currency risk is the risk that movement in exchange rates will negatively impact investments that are held in foreign currencies. For example, an increase in the Canadian dollar makes American stocks worth less to Canadian investors.

D

Day Trading Stock

Day trading stock is the strategy of making a large number of trades to profit from small price changes in stocks over the course of a trading day.

Debenture

A debt certificate issued by a government or company. A debenture is backed by the credit of the issuer, but is otherwise unsecured.

Del Monte

New York symbol DLM, makes canned fruits and vegetables, tuna, sauces and soups. It also makes pet foods.

Delphi Energy

Toronto symbol DEE, explores for, develops and produces oil in east-central Alberta, and natural gas in northeast Alberta and northeast B.C.

Depression

A depression is a rare but severe and ongoing form of recession. The Great Depression followed the stock market crash of 1929.

Derivatives

Derivatives are private insurance contracts that mainly protect lenders and bond investors against default by a borrower or bond issuer.

Devon Energy

New York symbol DVN, is one of the largest U.S.-based independent oil and gas explorers and producers.

Diamond Stocks

Diamond stocks, or the shares of companies that engage in diamond exploration, are high-risk investments.
They can pay huge dividends, because finding diamonds in mineable quantities can be very profitable. For example, Canada's Ekati diamond mine in the Lac de Gras area of the Northwest Territories is generating revenues of approximately $500 million per year over its 25-year mine life.
But investing in diamond stocks is speculative because it involves locating promising properties and bringing them into production. Generally, there is a long period between the exploration phase and the commercial production phase, before any investment will begin to pay off.

Diamonds North Resources

Toronto symbol DDN, has interests in 10 projects covering over eight million exploration acres in Nunavut and the Northwest Territories. Its prospects range from early to advanced-stage exploration.

Diamonds Trust Shares

American Exchange symbol DIA, is an exchange-traded fund that holds the 30 stocks that make up the Dow Jones Industrial Average.

Diebold

New York symbol DBD, is a leading maker of ATMs and surveillance systems.

Dilution

Dilution is the decrease in earnings per share that occurs when stock options and warrants are exercised, or when the company sells further shares.

Diversification

Diversification involves the planned distribution of investments across various securities to minimize the risk exposure to a specific industry or geographic segment. However, the risk of over-diversification exists, in which an investor can at best expect to mirror the market returns, minus any brokerage fees or management expenses.

Diversified Portfolio

A diversified portfolio is a portfolio consisting of investments spread across the five main economic sectors and a range of individual securities.

Dividend Reinvestment Plan

Dividend reinvestment plans (or DRIPs) are plans that permit shareholders to reinvest dividends to purchase additional shares (or fractions of shares). These plans bypass brokers, enabling shareholders to save on commissions.

Dividend Yield

The dividend yield is one of the important ratios to calculate for dividend stocks. It is calculated as the total annual dividends paid per share, divided by the current stock price. Movements in the stock price will change the dividend yield.

Dofasco

formerly Toronto symbol DFS, is Canada's second-largest steelmaker after Stelco. The company was taken over by Arcelor SA in 2006.

Dollar Cost Averaging

By investing a fixed sum at regular intervals throughout their working years, perhaps increasing that sum from time to time as their income rises, investors can largely forget about market trends. That's because they'll automatically buy more shares when prices are low, and fewer when they are high, and they'll benefit from the long-term rising trend in the market. This investing technique is called dollar cost averaging. It's a little like systematic saving, except that money is put into stocks (or mutual funds) instead of a bank account. However, some investors try to apply the dollar cost averaging principle to the investment of lump sums, by spreading their buying out over a period of time. That's different. This gradual buying is sometimes referred to as 'averaging in'.

Domino's Pizza

New York symbol DPZ, operates a network of franchised and company-owned pizza delivery stores in the United States and in more than 60 countries.

Dorel Industries

Toronto symbol DII.B, makes a range of products: ready-to-assemble furniture for home and office use; juvenile products such as infant car seats, strollers, high chairs, toddler beds and cribs; home furnishings including chairs, tables, bunk beds, futons and step stools; and recreational products.

Dow Jones Industrial Average

The Dow Jones Industrial Average is an index measuring the stock values of the 30 largest and most widely held companies in the United States. This is the most widely known index run by Dow Jones & Company, and is informally known as the Dow. Stock market indexes such as the Dow are often calculated in a different manner than the sum of all component stocks.

DRIP

See dividend reinvestment plan.

Drug Companies

The major drug companies are more speculative than most investors realize. They need a continuing flow of successful new products to maintain their earnings. They face increasing litigation and aggressive competition from generics as drugs come off patent. Unlike tech stocks, they have formidable regulatory burdens, and unlike other manufacturing stocks such as, say, auto companies, they do not benefit from customer loyalty.

Dun & Bradstreet

New York symbol DNB, provides credit reports on individual companies. Clients use these reports to make lending and buying decisions.

Dundee

Toronto symbol DC.A, is a holding company with subsidiaries in three main areas: wealth management, real estate and resources. Its main asset is its 49% stake (63% voting interest) in DundeeWealth Inc.

Dundee Investments

Dundee investments are offered by Dundee Wealth, a division of the Dundee Securities Corporation. They consist of stock and bond trading, mutual funds, segregated funds and guaranteed investment certificates.

Dundee REIT

Toronto symbol D.UN, owns and operates office, industrial and retail properties.

DundeeWealth

Toronto symbol DW, provides investment management, securities brokerage, financial planning and investment advisory services.

Dynamic Mutual Funds

Dynamic Mutual Funds is a Canadian investment firm with over 50 years of history. The offer a wide selection of investment products, including a family of over 200 mutual funds.

E

Earnings Per Share (EPS)

The net income over a period of time that can be attributed to a single common share. For example, if there were 100 shares outstanding, and earnings were $100, the EPS would be $1/share.

Economic Investment Trust

Toronto symbol EVT, is a closed-end trust that holds a portfolio of Canadian, U.S. and foreign stocks.

Economic Sectors

The five main economic sectors are Finance, Utilities, Manufacturing, Resources and the Consumer sector. Investing across all five sectors is a key element in creating a well-diversified portfolio.

Edward Jones Investments

Edward Jones investments are offered on a face-to-face basis by a network of financial advisors across Canada. Investments offered by the company include insurance and annuities through the Edward Jones Insurance Agency.

Emera

Toronto symbol EMA, generates and distributes electricity to customers in Nova Scotia and Bangor, Maine.

EnCana

Toronto symbol ECA, and New York symbol ECA, is a leading North American producer of natural gas and oil.

Enerplus Resources Fund

Toronto symbol ERF.UN, is one of North America's largest oil and gas trusts.

Epcor Power

Toronto symbol EP.UN, owns power plants in Canada and the U.S.

Ethanol Boom

Ethanol is a biofuel substitute for gasoline. In North America, ethanol is primarily derived from grain and corn. Political reactions to high oil prices and environmental concerns have benefited ethanol stocks and related industries.
The increasing demand for crops has reduced global reserves of grain and soybeans to historically low levels. Growing North American corn production for ethanol is also boosting commodity prices. These rising prices are providing farmers with cash to buy more fertilizer to achieve higher yields and protect soil fertility. This is in turn pushing up fertilizer prices, which benefits fertilizer stocks and other related commodity investments (such as potash stocks).
However, the politically driven ethanol boom is vulnerable to decline, and this adds risk to all ethanol stocks, fertilizer stocks and related commodity investments (such as potash stocks).

European Equity Fund

New York symbol EEA, is a closed-end fund that invests mainly in large-capitalization European stocks in the 15 countries that use the Euro currency. It may invest up to 20% of its assets in countries that do not use the Euro currency.

European Goldfields

Toronto symbol EGU, holds a 95% interest in Hellas Gold. Hellas owns three gold and base metal deposits in Northern Greece. The deposits are the Stratoni zinc/ lead/silver property, the Olympias gold/zinc/lead/silver project and the Skouries copper/gold property.

Exchange Traded Funds

Exchange-traded funds (ETFs) are index funds that can be traded as a single equity. They sometimes aim to achieve the same return as a stock index.
Index funds are mutual funds that invest so as to equal the performance of a market index, such as the S&P/TSE 60 Index. Exchange-traded funds (ETFs) hold baskets of stocks that represent stock indexes. They are similar to open-ended index funds in that they trade at net asset value.
Owing to their lower fees, both types generally show better long-term performance than about two-thirds of actively managed mutual funds with long-term track records.
Like stocks, exchange-traded funds (ETFs) trade on stock exchanges, and their prices are quoted daily in newspaper stock tables. Although the investor pays brokerage commissions to buy and sell them, these are offset by lower management fees.
Most index funds add or remove shares only when the underlying index changes. This low turnover is more tax efficient for investors, who don't incur the regular capital gains taxes from annual distributions made by conventional mutual funds.

F

Fair Isaac

New York symbol FIC, provides products and services that help businesses make better decisions on customer creditworthiness around the world.

Fairfax Financial Holding

Toronto symbol FFH, is a financial services holding company. Fairfax engages in insurance, reinsurance and investment management.

Fairmont Hotels & Resorts

formerly Toronto symbol FHR, owns or operates luxury hotels and resorts with in North America, Barbados and the United Arab Emirates. It also owns Delta Hotels, a chain of business class hotels. The company went private in 2006.

Falconbridge

Toronto symbol FAL, is a major producer of metals, including nickel, copper and aluminum. The company was acquired by Xstrata in August 2006.

FedEx

New York symbol FDX, provides door-to-door delivery of packages and documents in the United States and to over 220 other countries.

Fidelity Investments

Operating in Canada since 1987, Fidelity Investments Canada is a part of the Fidelity Investments Organization of Boston. In Canada, they manage both mutual funds and corporate pension plans.

Fidelity Mutual Funds

Fidelity mutual funds are an extensive range of domestic, international and fixed income mutual funds offered by Fidelity Investments.

Finning International

Toronto symbol FTT, is one of the world's largest dealers of heavy equipment made by Caterpillar Inc. Products include tractors, bulldozers, pavers and trucks.

FirstService

Toronto symbol FSV, operates in the real estate services market, providing services in the following areas: commercial real estate; residential property management; and property improvement.

Fixed-income

Fixed income investing is an investment strategy designed to provide a fixed stream of current income. This usually comes at the cost of foregoing capital gains.

Flow Through Shares

Flow through shares are a special class of shares that can pass along tax credits and deductions to investors that are normally only available to corporations. Most often they are shares of junior resource companies.

Ford Motor Co.

New York symbol F, is a North American carmaker.

Fording Canadian Coal Trust

Toronto symbol FDG.UN, is a major producer of metallurgical coal, a key ingredient in steelmaking. The company was acquired by Teck Cominco in October 2008.

Foremost Income Fund

Toronto symbol FMO.UN, makes all-terrain vehicles and drilling equipment for the mining, oil exploration and construction industries.

FOREX Investments

FOREX investments involve dealing in foreign currency futures or options. This can make sense for a business that is forced to take on unacceptable currency risk. Futures or options let the business lay off that risk onto speculators who wish to accept it.

Fort Chicago Energy Trust

Toronto symbol FCE.UN, owns 50% of the Alliance Pipeline, which extends from Fort St. John in British Columbia to Chicago, Illinois. Enbridge Inc. owns the other 50% interest. The other assets held by the two partners are 85.4% of the Aux Sable natural gas liquids plant. Fort Chicago also owns the Alberta Ethane Gathering System.

Fortis

Toronto symbol FTS, distributes electricity to customers in Newfoundland, Prince Edward Island, Ontario, Alberta and British Columbia. The company also owns power utilities in the United States and the Caribbean, plus hotels and commercial real estate, mainly in Atlantic Canada.

Four Year Rule

The Four Year Rule gets its name from the length of a U.S. president's term of office.
The rule says that an attractive buying opportunity appears in the stock market about every four years, in the year of the mid-term U.S. congressional election, often in the fall of that year.
According to the Four Year Rule, the market generally begins going up soon afterwards, and peaks two to three years later.
According to the Four Year Rule, the U.S. stock market - and in turn the Canadian market - generally has a below-average performance during the first two years of a four-year U.S. presidential cycle. That's because newly elected or re-elected presidents use the first two years of their terms to clean up any lingering problems. That way, they face fewer problems in the second half of the term, and improve the chances of an election victory for themselves or their chosen successor.
According to the Four Year Rule, this pattern creates uncertainty in the first two years of the term, and holds the market down or leads to a setback. Often, this period of sluggishness or retreat culminates in an attractive buying opportunity, which materializes around the time of the mid-term election, between the two presidential elections.
In the second half of the term, the administration reaps the gains it earned through harsh action in the first half. Political and economic conditions improve, so the market generally has an above-average performance in the election year and the pre-election year.

FPI

Toronto symbol FPL, makes a wide range of seafood products containing groundfish (cod, flounder, haddock, sole, turbot) and shellfish (shrimp, scallops, crab and lobster). The company changed its name to FP Resources Ltd. as part of a reorganization in 2007.

Franklin Templeton Investments

Franklin Templeton Investments Corp. is wholly owned by its parent company Franklin Resources Inc. In Canada, Franklin Templeton manages investments for individuals, institutions and other clients as well as offering investment products under the Franklin, Templeton, Mutual Series, Bissett and Fiduciary brand names.

Fundamentals

Information including ratios from a company's balance sheet, statement of cash flows, and income statement, as well as other qualitative and quantitative measurements that can help to determine the health and growth prospects of a company.

G

Gabriel Resources

Toronto symbol GBU, hopes to develop its 80%-owned Rosia Montana gold project in Romania.

Gannett

New York symbol GCI, publishes newspapers in the United States and UK, including USA Today. Gannett also owns over 20 TV stations in the U.S.

Garmin

NASDAQ symbol GRMN, is a market leader in navigation devices using GPS. This includes consumer products such as GPS receivers, portable automotive navigation devices, and fixed-mount GPS/sounder products, which are used in automotive, marine, and recreation applications. Aviation products include GPS and VHF navigation enabled receivers.

GCI Group

Toronto symbol GIB.A, provides information technology and business-process services to a wide range of business and government clients.

General Electric

New York symbol GE, is one of the world's largest industrial companies. It operates in six main segments: Infrastructure; Commercial Finance; Consumer Finance; Healthcare; Industrial; and Media.

General Mills

New York symbol GIS, is the second-largest cereal maker in the United States after Kellogg. Leading brands include Cheerios, Total and Wheaties. The company also makes a variety of other foods, including baking mixes, dinner mixes, canned and frozen vegetables, and yogurt.

Gennum

Toronto symbol GND, makes equipment that lets broadcasters store, manipulate and transport video signals without losing picture quality. It also makes chips that improve the speed and reliability of transmissions in computer networks.

Genuine Parts

New York symbol GPC, distributes automotive replacement parts to over 4,800 independent outlets in North America. It also operates over 1,100 auto parts stores under the NAPA banner. As well, the company distributes industrial parts, office furniture and electrical equipment.

George Weston

Toronto symbol WN, operates two distinct business divisions: Weston Foods, which includes fresh and frozen bakeries in North America; and a 62% interest in Loblaw Companies, Canada's largest food distributor.

Gold Stocks

Gold stocks are investments in companies that mine or explore for gold. Gold is often viewed as a safe investment, so prices of these stocks will often increase in response to political or economic worries, which increase the price of gold.

Goodwill

Goodwill is an intangible asset shown on a balance sheet, which means it does not correspond with anything physical such as a building or piece of equipment. It represents value such as a brand name, patents, and proprietary technology.

Goodyear Tire & Rubber

New York symbol GT, is the world's largest tire maker.

Great Lakes Hydro

Toronto symbol GLH.UN, owns 26 hydroelectric generating stations located on eight river systems in four distinct geographic regions: Quebec, Ontario, British Columbia and New England.

Great-West Lifeco

Toronto symbol GWO, is Canada's largest insurance company. It also provides retirement planning and wealth management services.

Green Stocks

Green stocks is a term that refers to companies who promote and/or profit from actions that are good for the environment. The category is broad and can include wind power stocks, solar power stocks, and other industries with environmental goals.

Grey Island Systems

Toronto symbol GIS, is an Internet-based automated vehicle location and mobile data services provider for the fleet management market.

Growth Stocks

Growth stocks are companies that are likely to have earnings growth above the market average. Frequently, they pay few if any dividends. Instead they typically re-invest any extra cash flow to promote further growth.

H

H&R Block

New York symbol HRB, offers income tax preparation services in the United States, Canada and Australia. It also provides tax, accounting and consulting services to businesses.

H&R REIT

Toronto symbol HR.UN, holds interests in office properties, industrial properties and retail properties. Over half of H&R's properties are in the Greater Toronto Area. The rest are elsewhere in Ontario, in Quebec, western Canada and the United States.

Hart Stores

Toronto symbol HIS, operates midsized department stores in Eastern Canada.

Hartco Income Fund

Toronto symbol HCI.UN, provides computers and services to businesses.

Harte-Hanks

New York symbol HHS, provides direct marketing services to businesses. It also publishes shopper newspapers in California and Florida.

Hecla Mining

New York symbol HL, explores for, mines and processes silver and gold in the U.S. and Mexico.

Hedge

A hedge is a position established in one market to offset any risk exposure to an investment in another market. For example, an investor might purchase both put and call options to hedge their risks.

Hedge Funds

Hedge funds are aggressively managed portfolios of investments. They use higher risk investment strategies such as leveraging and taking long, short and derivative positions in domestic and international markets. These riskier investment strategies are undertaken with the goal of providing higher rates of investor return.

Heinz

New York symbol HNZ, makes a wide variety of processed foods, including condiments, sauces, soups, baked beans, pastas and infant food.

Hewlett-Packard

New York symbol HPQ, is one of the world's leading makers of computers and electronic devices. Products include printers and digital cameras, personal computers; business computers; computer services; financing; and software.

Home Capital Group

Toronto symbol HCG, is the parent company of Home Trust Company, a federally regulated trust company that specializes in residential first mortgages to small business owners, the self-employed and others who don't meet the stricter criteria of larger, traditional lenders.

Honda Motor

New York symbol HMC, is Japan's third-largest carmaker, and the world's largest producer of motorcycles.

Hudson Bay Co.

Toronto symbol HBC, operates department stores across Canada.

Hulbert Financial Digest

Hulbert Financial Digest is well-respected publication that tracks the performance of over 180 stock and mutual fund newsletters and over 500 recommended portfolios. The publication helps to highlight the long-term performance of individual newsletters and portfolios, showing which ones have achieved the highest gains.

HYIP Investments

HYIP investments, or high yield investment program investments promise high returns over short periods of time. They have a poor reputation as many such investments can be pyramid schemes and internet scams in disguise.

I

Idearc

formerly New York symbol IAR, publishes telephone directories under the Yellow Pages brand.

Idexx Laboratories

NASDAQ symbol IDXX, makes equipment that veterinarians use to detect disease in pets and livestock. It also makes systems that detect contaminants in water and milk.

IFIC

See Investment Funds Institute of Canada.

IGM Financial

Toronto symbol IGM, is Canada's largest independent mutual fund company.

Imperial Metals

Toronto symbol III, is a Vancouver-based mining company that explores for and produces base and precious metals. Its producing assets include a 100% interest in the Mount Polley open-pit copper/gold mine in central British Columbia.

Imperial Oil

Toronto symbol IMO, is Canada's largest integrated oil company. It also operates over 1,900 retail gas stations under the "Esso" banner. ExxonMobil owns 69.6% of Imperial's stock.

Inco

Toronto symbol N, is a leading producer of nickel, a mineral used to make stainless steel and batteries. Inco also mines other base metals like copper and cobalt, as well as precious metals. The company was acquired by Brazil's Companhia Vale do Rio Doce in 2006.

Income Funds

Income funds are mutual funds that focus their investment strategy on fixed-income generating investments such as bonds and high dividend yielding common and preferred shares. The goal of these funds is to generate a continual stream of income for investors.

Income Investing

Income investing is an investment strategy that works to promote current income to the investor, even at the expense of long-term capital appreciation. This investment strategy is often chosen by people living off their investment portfolio.

Income Trusts

Income trusts are a type of investment trust that holds income-producing assets. Canada offers special tax treatment for income trusts. They flow their income through to their unitholders, without paying much if any corporate tax. Investors pay tax on most of the distributions as ordinary income (although some distributions qualify as a tax-free return of capital).

Index Funds

Index funds (or index mutual funds) are mutual funds that invest in a portfolio of stocks that is designed to duplicate the return of a particular stock market index (such as the S&P/TSX 60).

India Fund

New York symbol IFN, invests mainly in large-capitalization Indian stocks.

Indigo Books & Music

Toronto symbol IDG, is Canada's largest bookseller. It also sells its products over the Internet.

Initial Public Offering

An initial public offering, or IPO, is the first sale of stock by a company as it goes public. For more information, see New Offering.

Innergex Power

Toronto symbol IEF.UN, owns interests in 10 hydroelectric power generating facilities in Quebec, Ontario, British Columbia and Idaho, as well as two wind farms in Quebec.

Intel

NASDAQ symbol INTC, is the world's largest maker of computer chips.

International Business Machines

New York symbol IBM, is the world's largest computer company. It specializes in large mainframe computers for governments and corporations.

International Road Dynamics

Toronto symbol IRD, is a highway traffic management technology company specializing in supplying products and systems to the global intelligent transportation systems industry. This includes automated toll road systems, automated truck weigh station systems, WIM (Weigh-in-Motion) systems, advanced traffic control, driver management systems and data collection systems.

Invacare

New York symbol IVC, makes wheelchairs, motorized scooters and other mobility and home care products.

Investing For Beginners

Investing for beginners is a body of advice and recommendations to make it easier for beginners to successfully build a successful portfolio of investments.

Investment Counselor

An investment counselor is an industry specialist who earns fees through providing advice to investors and in many cases managing their investments. Their roles and functions are subject to strict regulatory requirements.

Investment Funds Institute Of Canada

The Investment Funds Institute of Canada (IFIC) is the trade organization for the Canadian investment funds industry.

IPO

See Initial Public Offering.

IShares Canadian Bond Index Fund

Toronto symbol XBB, is an exchange-traded mutual fund that mirrors the performance of the DEX Universe Bond Index.

IShares Canadian Short Bond Index Fund

Toronto symbol XSB, is an exchange-traded mutual fund that mirrors the performance of the DEX Short Term Bond Index.

IShares Dividend Index Fund

Toronto symbol XDV, is an exchange-traded mutual fund that holds the 30 highest yielding Canadian stocks. Stocks are included in the index based on their dividend growth, yield and average payout ratio.

IShares MSCI Canada Index Fund

American Exchange symbol EWC, is similar to a market-cap based index fund, but it tinkers with the index fund formula to try and improve performance by using its proprietary Morgan Stanley Capital International Canada Index.

IShares MSCI Japan Index Fund

American Exchange symbol EWJ, is an exchange-traded mutual fund that tries to match the return of the MSCI Japan Index (Morgan Stanley Capital International Japan Index). The MSCI Japan Index is a benchmark for Japanese equity performance.

IShares S&P/TSX 60 Index Fund

Toronto symbol XIU, is an exchange-traded mutual fund that holds a basket of stocks that represent the S&P/TSX 60 Index. The index is made up of the 60 largest and most heavily traded stocks on the TSX.

IShares S&P/TSX Canadian REIT Index Fund

Toronto symbol XRE, is an exchange-traded mutual fund that holds the 12 Canadian real estate investment trusts (REITs) in the S&P/TSX Capped REIT Index. The weight of any one REIT in the value of the S&P/TSX Capped REIT Index is limited to 25%.

Ivernia

Toronto symbol IVW, produces lead at its Magellan mine in western Australia.

J

Japan Equity Fund

New York symbol JEQ, is a closed-end fund that invests mostly in large capitalization stocks on the Tokyo Stock Exchange.

Japan Smaller Capitalization Fund

New York symbol JOF, is a closed-end fund that invests mainly in less-widely-followed Japanese over-the-counter stocks.

JC Penney

New York symbol JCP, operates department stores throughout the United States.

Joint Stocks

Joint stocks are issued by organizations that are hybrids of partnerships and corporations. While shares in these companies can be traded on secondary markets, the shareholders remain responsible for any corporate debts.

Jones Apparel Group

Toronto symbol JNY, designs clothing, accessories and footwear under several brands, including Jones New York, Gloria Vanderbilt and Nine West.

JP Morgan Chase

New York symbol JPM, provides a wide range of banking and other financial services in the United States and over 60 other countries.

K

Kingsway Financial

Toronto symbol KFS, offers automobile insurance for drivers that standard auto insurers have rejected. This could be because of their poor driving record, vehicle type, place of residence, age or credit rating.

Korea Fund

New York symbol KF, is a closed-end fund that invests at least 80% of its assets in Korean equities. Currently, 99% of its assets are in South Korean stocks.

Kraft Foods

New York symbol KFT, is the world's second-largest food company after Swiss-based Nestle.

L

La-Z-Boy

New York symbol LZB, makes a wide variety of upholstered and wooden furniture.

Large Cap Stocks

The definition of large cap stocks can vary between stock market indexes depending on their respective sizes. The name refers to the size of a company's market capitalization. Large caps will typically consist of the largest companies on each exchange.

Legacy Hotels REIT

formerly Toronto symbol LGY.UN, owns luxury hotels in Canada and the United States. The company went private in 2007.

Leitch Technology

formerly Toronto symbol LTV, makes equipment that lets broadcasters store, switch, distribute, convert and process high-quality audio and video signals. The company was acquired by Harris Corp. in 2005.

Leon's Furniture

Toronto symbol LNF, operates furniture stores across Canada.

Limited Brands

New York symbol LTD, operates two main retail chains: Victoria's Secret (lingerie) and Bath & Body Works (soaps and bath oils). It also operates the La Senza (lingerie) chain.

Linamar

Toronto symbol LNR, is Canada's second-largest maker of automobile parts after Magna International Inc. It specializes in precision-machined components, assemblies and systems for the North American and European car and truck markets.

Liquidation World

Toronto symbol LQW, operates a chain of stores that liquidate merchandise.

Liquidity

Liquidity is the ease with which a stock can be bought or sold without a big change in pricing. This can often be determined by the average daily trading volume of the stock in a particular stock market. The more actively traded a stock is, the more liquid it is, and hence easier to dispose of on a particular stock market.

Liz Claiborne

New York symbol LIZ, designs a wide variety of clothing and accessories for men and women. It sells its products mainly through department stores, as well as its own retail stores.

Loblaw

Toronto symbol L, is Canada's largest grocery store operator, with over 1,000 stores.

LoJack

NASDAQ symbol LOJN, sells vehicle theft recovery systems. The company has two main products: the LoJack Vehicle Recovery System and the LoJack Early Warning System.

London Interbank Offered Rate (LIBOR)

The daily rate at which banks can borrow unsecured funds in the London interbank market. A high LIBOR can negatively impact profits for bank stocks, as banks pay more to borrow money for their own lending operations.

M

Mackenzie Investments

Founded in 1967, Mackenzie Investments is an investment advisory firm offering its services through a network of third party financial advisors. It is a member of the IGM Financial Inc. group of companies.

Mackenzie Mutual Funds

Mackenzie mutual funds are one of 12 families of funds offered by Mackenzie Investments. It consists of 40 different mutual funds.

Macy's

New York symbol M, operates department stores under the Macy's and Bloomingdale's banners.

Major Drilling

Toronto symbol MDI, is one of the world's largest drilling service companies serving the mining industry.

Management Expense Ratio

The management expense ratio (or MER) is the percentage charged by mutual funds on investment holding to pay the management fees of the fund. Management fees are taken from the assets of the fund, lowering the return for investors.

Manitoba Telecom Services

Toronto symbol MBT, is Manitoba's main provider of regular and wireless phone services. The company also owns Allstream, which provides communication services to businesses across Canada.

Manulife Financial

Toronto symbol MFC, sells life and other forms of insurance, as well as mutual funds and investment management services. It operates in 19 countries and territories worldwide.

Manulife Investments

Manulife Investments is a part of Manulife Financial, an international financial services company. It offers investment products for individuals.

Maple Leaf Foods

Toronto symbol MFI, is Canada's largest food processing company. Its products include fresh and prepared meats and poultry, mostly under the Maple Leaf and Schneider brands. It also makes fresh and frozen bakery products through 89.8%-owned Canada Bread Co. Ltd.

Margin

The use of money borrowed from a broker or dealer to purchase securities. The purchase of shares in such a fashion is known as buying on margin.

Market Analysis

Market analysis is the name for the research involved when attempting to predict movements in the market. It can consist of historical records, price charting, technical data and a host of other research elements.

Market Order

An order to purchase a specific security immediately at the best current price available.

Market Timing

Market timing is the investment strategy of attempting to buy stocks or funds at a low and selling them at a high. Timing buys and sells always seems so obvious in hindsight. Keep in mind that if any investor knew just when to buy or sell, they would acquire a large proportion of all the money in the world, and nobody ever does that. However, investors can greatly improve their market timing by avoiding these two temptations, which are essentially mirror-images of each other:
1. Avoid the lure of plunging into a risky stock or investment situation, even if it seems to offer a great profit opportunity.
2. Resist the urge to dump a high-quality investment just because it looks like it may get dragged down by a falling market.

Masonite International

formerly Toronto symbol MHM, is one of the world's largest makers of interior and exterior doors, as well as related building products. The company went private in 2005.

Masters Energy

Toronto symbol MSY, explores for and produces oil and natural gas in northern Alberta's North Peace River Arch region and southern Alberta's Little Bow district.

Maverick Tube Canada

formerly Toronto symbol MVK, makes steel tubes used in drilling for and transporting oil and natural gas, and for industrial plumbing and heating. Tenaris S.A. acquired Maverick Tube Canada's parent company in 2006.

McCormick

New York symbol MKC, is the world's leading maker of spices, herbs, seasonings, flavorings, sauces and extracts.

McDonald's

New York symbol MCD, operates over 31,400 fast food restaurants worldwide.

McGraw-Hill

New York symbol MHP, has three main operations: financial information under the Standard & Poor's brand; school textbooks; and media (magazine publishing and TV stations).

McKesson

New York symbol MCK, is the largest wholesale distributor of pharmaceutical drugs in the United States and Canada. It also provides software and services that help pharmacies and clinics manage their drug inventories.

MDS Inc.

Toronto symbol MDS, operates in three medical-related fields: contract drug research, analytical devices and medical isotopes for cancer treatments.

Metro

Toronto symbol MRU.A, operates food stores and drugstores in Ontario and Quebec.

Microsoft

NASDAQ symbol MSFT, is the world's largest software company. Its Windows operating system runs roughly 90% of the world's computers. Microsoft's Office suite of programs also dominates the business software field.

Mining Stocks

Mining stocks explore for or produce minerals. They are impacted by commodity prices in addition to their own business risks. While sometimes risky, they can also be a strong performer in a portfolio while commodity prices are up.

Miranda Gold

Toronto symbol MAD, is a gold exploration company focused mostly in Nevada.

Molson Coors

Toronto symbol TPX.A, Toronto symbol TPX.B and New York symbol TAP, is the world's fifth-largest brewer by volume. It operates mainly in the United States, Canada and Europe.

Molybdenum

Stainless steel and construction steel plus high-performance "superalloys" currently consume about 80% of annual global molybdenum production.

Momentum Investing

Momentum investing theory can be summed up as "buy high, sell higher". The trouble is that when the stock's rise falters, momentum investors also try to get out as a group, but there are never enough buyers. This leads to violent price fluctuations - and often big losses.

Momentum Stocks

Stocks with prices that are moving quickly higher in a market - usually ahead of earnings growth. Momentum investors are particularly keen on the so-called 'positive earnings surprise', when a company outdoes brokers' earnings estimates. They view a 'negative earnings surprise' - lower-than-expected earnings - as a sell signal. They use a variety of computerized formulas to make buy and sell decisions, but all come down to "Buy on strength and sell on weakness." So they tend to pile into the same stocks all at once, and the gains that follow are something of a self-fulfilling prophecy.

Moody's

New York symbol MCO, provides independent credit ratings and other information on bonds and other securities. It also provides credit assessment services to banks and other lenders.

Morguard Investments

Established in 1975, Morguard Investments Limited is a leading real estate investment and management company in Canada and has over 7.5 billion dollars under management. Morguard offers a variety of investment products to both individual and institutional investors.

Motorola

New York symbol MOT, is a major maker of mobile phones. It also makes equipment for telecommunication networks, and consumer products such as modems and personal video recorders.

MTS Systems

NASDAQ symbol MTSC, makes equipment and software that carmakers and other manufacturers use to test the mechanical behavior of materials, machines and structures. The company also makes sensors that improve the performance of automated industrial machinery.

Mutual Funds

Mutual funds are diversified portfolios of equities and investments in which small investors can take part. They are an investment product, with individual shares being called units.

N

Nasdaq-100 Trust Shares

NASDAQ symbol QQQQ, is an exchange-traded fund that holds the stocks that represent the Nasdaq 100 Index. This index is made up of the 100 largest and most heavily traded stocks on the Nasdaq exchange.

NCR Corp.

New York symbol NCR, is a leading supplier of ATMs (automated teller machines), cash registers and bar code scanners, mainly to banks and retailers.

Net Asset Value

The total of a company's assets less any liabilities. This amount is also referred to as Shareholder's Equity.

Net Earnings

The remainder of a company's gross earnings after expenses and taxes have been paid. Dividends paid by a company after the calculation of net earnings.

New Format Shopping Centres

New Format' shopping centres are large, outdoor malls made up of "Big Box" stores in the suburbs of larger cities. They feature plenty of room for parking and future expansion.

New Germany Fund

New York symbol GF, is a closed-end fund that invests mostly in middle-market (small and mid-cap) German equities.

New Gold

Toronto symbol NGD, operates three mines: the Peak gold/copper mine in Australia, the Cerro San Pedro gold/silver mine in Mexico and the Amapari gold mine in Brazil.

New Ireland Fund

New York symbol IRL, is a closed-end fund that invests in Irish companies.

New Issues

Human nature dictates that new issues will generally come to market when it's a good time for insiders or the company to sell. That needn't be, and often isn't, a good time for investors to buy.
If an investor bought every new issue that came out, they'd wind up with mediocre long-term results at best. However, most investors won't be able to buy all new issues. That's because some new issues are underpriced when they come to the market, so they attract a lot of buyers and shoot up as soon as trading begins.
Brokers can spot these 'hot' new issues ahead of time, if only because of the reaction they get from their first tentative selling efforts. Hot new issues are always in short supply, so brokers reserve them for their most profitable clients. These are generally those clients who bought the more common 'cold' new issues, which limp out of the starting gate. But there are never enough hot new issues to undo the damage from the cold ones.

Newell Rubbermaid

New York symbol NWL, makes a wide variety of household products, such as plastic storage bins, tools and pens.

Newmont Mining

New York symbol NEM, is one of the largest gold producers in the world with major operations in the United States, Canada, Peru, Australia, Indonesia and Ghana.

Nissan Motor

NASDAQ symbol NSANY, is Japan's second-largest automaker after Toyota, and just ahead of Honda.

Nordstrom

New York symbol JWN, operates upscale department stores, as well as smaller stores that sell shoes and clearance merchandise.

Nortel Networks

Toronto symbol NT, is one of the world's largest makers of telecommunications equipment. The company sells its products mainly to telephone companies, cable TV operators and large organizations.

Northbridge Financial

formerly Toronto symbol NB, is one of the largest insurers in Canada. The company provides auto, general liability and commercial insurance through its Lombard Canada, Markel Insurance of Canada, Commonwealth Insurance Co. and Federated Insurance Co. of Canada units. Northbridge was acquired by Fairfax Financial Holdings in 2009.

Northgate Minerals

Toronto symbol NGX, owns and operates the Kemess South open-pit mine in north-central B.C.

Nova Chemicals

Toronto symbol NCX, makes industrial plastics that manufacturers use to make a wide variety of products including auto parts, construction materials and packaging.

Novelis

formerly Toronto symbol NVL, makes rolled aluminum products, including beverage cans, packaging and automotive parts. The company was acquired by India's Hindalco in 2007.

Nvidia

NASDAQ symbol NVDA, designs 3D chips for computers, video game consoles and other devices.

O

Oilexco

Toronto symbol OIL, produces and explores for oil in the North Sea.

Open End Funds

Open-end funds are mutual funds that offer more units as more money is invested in the fund. Units are purchased from and redeemed to the fund itself rather than being traded on secondary markets. As a result of this, they are valued based on current market prices.

Option

An option offers its holder the right to buy or sell a particular security at a specific price within a specific time frame. Two kind of options are put options and call options.

P

Parent Company

A company that holds sufficient voting stock to have control over another corporation. This can occur through the creation of a subsidiary or through the purchase of stock in another company.

Pason Systems

Toronto symbol PSI, rents instrumentation and provides data services to oil and gas companies and drilling contractors throughout Canada, the U.S., Mexico and Argentina. Its services include data acquisition, well-site reporting software, remote communications and Internet information management tools.

Payout Rate

The payout rate for dividend paying stocks is calculated as the percentage of total earnings that are paid out as dividends.

Pengrowth Energy Trust

Toronto symbol PGF.UN, produces oil and natural gas in western Canada, as well as offshore Nova Scotia.

Penn West Energy Trust

Toronto symbol PWI.UN, is the largest conventional oil and gas trust in North America.

Penny Stocks

Penny mining stocks are some of the riskiest stocks that an investor can buy. These companies are trying to find mineral deposits that can be mined at a profit, and such finds are exceedingly rare. Because success in the search is so rare, it's all the more important to look for investment quality in any penny mine selections. It may seem contradictory to use the terms 'investment quality' and 'penny mine' in the same sentence. However, there are even wider disparities in the investment quality of penny mines than in better established companies.
Buying penny mining stocks is pure speculation. It can pay off extremely well when it succeeds, of course. However, in addition to the geological odds against success, investors also need to recognize the human factor. It's much easier to launch and promote a penny stock than it is to find a mine. That's why penny mines are so common, even though profit-making mines are rare.

PepsiCo

New York symbol PEP, is the world's second-largest maker of soft drinks after Coca-Cola. Other businesses include Frito-Lay snack foods, Tropicana fruit juices and Quaker Oats.

Petro-Canada

Toronto symbol PCA, is Canada's second-largest integrated oil company, after Imperial Oil. Most of its production comes from properties in Western Canada, as well as offshore platforms near Newfoundland. It also operates 1,500 retail gas stations and two petrochemical refineries in Canada.

PetSmart

NASDAQ symbol PETM, is North America's largest supplier of pet foods, supplies and services.

Philips Electronics

New York symbol PHG, makes consumer electronic products, such as TV sets, DVD players and kitchen appliances. The company also makes lighting equipment and high-end medical equipment.

Pooled Funds

Pooled funds, like mutual funds, are large portfolios of investments in which investors purchase units. Pooled funds can be a very good investment vehicle for high-net-worth individuals, because they often charge lower management fees.

Portfolio Management

Portfolio management is the process of choosing and monitoring the investment holdings of an individual or institution. Individuals can manage their own portfolios or pay for professional management services.

Power Corp.

Toronto symbol POW, is a diversified holding company. Power Corp. controls one of Canada's largest mutual-fund companies, IGM Financial, as well as Great-West Lifeco, one of the largest life insurers.

Precision Drilling Trust

Toronto symbol PD.UN, is Canada's largest provider of contract drilling and related services to the oil and natural gas exploration industry.

Preferred Shares

There are two types of stock issued by a company: common and preferred. Preferred stocks typically have no voting rights (unless a specified number of dividend payments have been missed). Preferred shares are entitled to a fixed dividend payment. In the event of company bankruptcy, preferred shareholders have a higher priority claim on company assets than common shareholders.

Price/earnings Ratio

The price/earnings ratio (or p/e ratio) is calculated by taking the current market price of a company's common stock and dividing it by the company's annual earnings per share. This ratio is a tool used to evaluate a company's performance and calculate stock trading strategy.

PrimeWest Energy Trust

formerly Toronto symbol PWI.UN, produces oil and natural gas in western Canada. The trust was acquired by Abu Dhabi National Energy Co. in 2007.

Procter & Gamble

New York symbol PG, is one of the world's largest makers of household and personal care products.

Profit Taking

Profit taking is the process of selling investments which have risen in value for the purpose of realizing a capital gain. Large numbers of investors doing this can temporarily push down the market.

Proxy

A written authorization provided by a shareholder that permits another individual to exercise the voting rights of the shareholder at company meetings. The holder of the proxy does not need to be a shareholder of the company.

PSP Investments

PSP Investments, or the Public Sector Investment Board as it is more formally known, is a crown corporation established to manage all contributions made to the pension funds for federal employees, members of the Canadian Forces, and members of the RCMP.

Pulse Data

Toronto symbol PSD, is a seismic data library firm specializing in acquiring, selling and licensing seismic data to clients in Western Canada.

Put Option

A put option offers an investor the opportunity to sell a particular security at a specific price within a specific time frame. These options are profitable when the investment in question goes down as the holder of the put option can purchase an investment at a lower price to replace the one just sold.

Q

Quaker Chemical

New York symbol KWR, makes lubricants and specialty chemicals that protect industrial machinery from corrosion.

R

RBC Direct Investing

RBC Direct Investing is the discount brokerage arm of the Royal Bank. It provides clients with both research and trading tools.

RBC Mutual Funds

RBC mutual funds are a family of mutual funds offered by the RBC investing arm, RBC asset management. The fund family has a large number of offerings for investors to choose from.

RDM Corp.

Toronto symbol RC, provides software and hardware products for electronic payment processing, mainly in the United States.

Real Estate Investing

Real estate investing is the strategy of investing in real estate for profit. Many investment products, such as real estate investment trusts, permit you to gain access to such investments without outright purchase of a piece of real estate and the management issues associated with such a purpose.

Real Estate Investment Trusts

REITs, or real estate investment trusts, invest in income-producing real estate such as office buildings and hotels.
High quality REITs are among the most stable of the royalty and investment trusts. That's because many REITs hold high-quality, non-depleting assets, and can lock in lease rates and financing costs for long terms.
In contrast, other investment trusts may hold low-quality assets in speculative industries such as resources, sugar production and refrigerated warehouses. These investments are subject to hidden business risks that could have a sudden, devastating effect on cash flow and yields.
Of course, REITs are not without risks, which include losing tenants in a prolonged economic slowdown. REITs concentrated in one geographic area or one type of real estate can suffer if one region or industry sector slows down. Additionally, rising interest rates make it more costly to refinance debt as it comes due.
The best of the REITs have good management, and balance sheets strong enough to weather a long economic downturn. They also have high-quality tenants, and carefully match their debt with their leases. The best REITs do well in spite of an economic slowdown, and take advantage of low rates to refinance long-term mortgages.

Recession

A recession is defined as two consecutive quarters of decline in the gross national product of a company. A recession is less severe than a depression. Sometimes when Canadian stock market news in a recession seems particularly bad, it might be the best time to buy stocks at bargain levels.

Registered Retirement Income Funds

Registered retirement income funds, or RRIFs are the matured form of RRSPs. The conversion must occur by age 70. Individuals are required to make minimum annual withdrawals from the funds.

Registered Retirement Savings Plans

Registered retirement savings plans, or RRSPs, are a form of tax-deferred savings plan designed to assist individuals in saving for retirement. Contributions to the plans are tax deductible, and the investments grow tax-free. Upon withdrawal, the funds are then taxed as ordinary income to the individual.

REIT

See Real Estate Investment Trusts.

Reitmans

Toronto symbol RET.A, sells women's apparel and accessories in stores across Canada.

Research And Development

Expenses incurred to develop new products or improve the efficiency of existing products. Companies have to treat this spending as a day-to-day expense, much like maintenance or tax payments. So research and development spending comes out of the current year's sales, and it lowers the current year's earnings. In competitive industries, high R&D spending can provide an advantage to a company.

Restoration Hardware

formerly NASDAQ symbol RSTO, is a specialty retailer of high-quality home furnishings, linens, bath fixtures and bathware, plus functional and decorative hardware, gifts and related merchandise that reflect classic or period designs. The company was acquired in June 2008.

Retirement Planning

Retirement planning is the process of establishing goals for after your retirement and creating an investment plan that will permit you to achieve those goals. This planning process will determine required contribution rates, risk tolerance, and a number of other factors.

Reverse Split

A reverse split occurs when a company consolidates a larger number of shares into a smaller amount, resulting in a higher share price with fewer shares outstanding. For example, under a one-for-three stock split, investors would hold one share of stock for each three they held previously.

RioCan

Toronto symbol REI.UN, is Canada's largest REIT. It specializes in large, Big Box-style retail shopping centres.

Royal Bank

Toronto symbol RY, is Canada's largest bank by assets.

Royal Bank Mutual Funds

Royal Bank mutual funds are offered by RBC asset management. For further details, see RBC Mutual Funds.

Royalty Trusts

Royalty trusts are investment products that profit from royalties on the sale of production from natural resource companies such as oil and gas. They are a form of income trust. Income trusts are a type of investment trust that holds income-producing assets. Canada offers special tax treatment for income trusts. They flow their income through to their unitholders, without paying much if any corporate tax. Investors pay tax on most of the distributions as ordinary income (although some distributions qualify as a tax-free return of capital).

RRIFs

See Registered Retirement Income Funds.

RRSP Meltdown

An RRSP meltdown is a strategy put forward by some financial advisors as a means of drawing money out of a Registered Retirement Savings Plan (RRSP) with little or no income tax obligation.
In the simplest form of an RRSP meltdown, the investor sets up an investment loan and makes the interest payments from RRSP withdrawals (equivalent to the interest payment). Since the interest on the loan is tax-deductible, the RRSP withdrawal taxation is canceled out.
This RRSP meltdown strategy results in zero tax, owing to the RRSP withdrawal. Moreover, the investment loan can be used to purchase dividend paying stocks to provide income during retirement. On which, you pay a lower rate of tax on dividends from Canadian companies than on interest.
However, often the arrangements that financial advisors suggest, involve taking RRSP withdrawals and placing the money in business or real estate deals that generate large tax deductions, in order to offset the taxable income from the RRSP withdrawals. The risk is that the investor can be left holding an illiquid investment. To generate the tax deductions, he may have to guarantee a large debt.
Sometimes the RRSP meltdown deal 'guarantees' the investor a steady income. But the guarantee is sure to be full of holes.
The only reliable guarantee in RRSP meltdown deals is the huge fees and commissions generated for the sales people and financial institutions involved.

RRSPs

See Registered Retirement Savings Plans.

Ruby Tuesday

New York symbol RT, owns and operates the Ruby Tuesday casual dining restaurant chain.

Russel Metals

Toronto symbol RUS, is one of North America's largest metals distribution companies.

Russell Investments

Operating in Canada as Russell Investments Canada Limited, Russell offers a wide range of tailored opportunities to individuals and corporate clients. Russell is a global leader in multi-manager investment services for its more than 340 funds

S

S&P Depository Receipts

American Exchange symbol SPY, are commonly called 'Spiders'. This fund holds the stocks in the S&P 500 Index. This index is comprised of 500 major U.S. stocks chosen for market size, liquidity, and industry group representation.

Saputo

Toronto symbol SAP, is Canada's largest producer of dairy products including milk, butter and cheese. Its main dairy brands include Saputo, Stella and Dairyland. Saputo also makes snack cakes and tarts.

Sarbanes-Oxley Act

An act passed by the U.S. Congress in 2002 with the aim of protecting investors from fraudulent accounting activities at corporations.

Savings Bonds

Savings bonds are non-transferrable debt securities that are issued and backed by a government body. In Canada, these bonds are sold by both federal and provincial governments and are marketed to individual investors.

Savings Rate

The savings rate measures income minus consumption - nothing more. It ignores capital gains, realized or unrealized, on investments, homes, businesses or anything else. It also ignores any buildup in the value of pensions.

Saxon Mutual Funds

Saxon mutual funds are a family of 12 funds run by Saxon Funds Management Limited, which is a subsidiary of Saxon Financial Inc.

Scotia Mutual Funds

Scotia mutual funds (also known as Scotia Funds) are the mutual fund family offered by Scotiabank.

Sector Funds

A sector fund is a mutual fund devoted to a specific industrial sector. Buying sector funds entails special risks. That's especially true if they are in expanding fields, such as health care, pharmaceuticals and biotechnology.

Securities Lending

Mutual funds, index funds and exchange-traded funds (ETFs) often engage in securities lending. That is, they lend securities to third-party borrowers, mostly hedge funds and investment firms. Borrowers mostly use the securities for short selling. After borrowing, they sell the securities with the hope of buying them back at a lower price. This is of course a way of speculating on a decline in price.
The lending institution receives all the dividends and interest it was entitled to as an investor in the security, plus a fee for making the loan.
There is negligible risk of losing money on the loan, since the borrower puts up collateral of at least 102% of the value of the borrowed securities. This collateral typically consists of cash, T-bills or highly rated short-term debt instruments. The borrower is also liable for any shortfall between the value of the collateral and the value of the securities. If the value of the securities rises, the borrower has to add to the collateral on a daily basis, to maintain coverage at 102%.

Share Split

A division of corporate shares to increase the total number of shares without changing ownership percentages. For example, under a three-for-one stock split, investors would hold three shares of stock for every one they held previously. Splits are undertaken when the stock price has risen too high, so that more investors can participate with the lower price, and to increase liquidity.

Shareholder's Equity

A company's total assets minus its total assets. It's also the sum of the amount the owners originally invested in the company plus retained earnings. Also called book value.

ShawCor

Toronto symbol SCL.A, makes sealants and coatings that protect onshore and offshore oil and natural gas pipelines from corrosion.

Shermag

Toronto symbol SMG, makes high-quality residential furniture at plants in Quebec and New Brunswick.

Sherwin-Williams

New York symbol SHW, is the largest paint maker in the United States. It also operates more than 3,300 paint stores throughout North America.

Shore Gold

Toronto symbol SGF, owns 100% of the Star diamond project in the Fort a la Corne area of Saskatchewan, which hosts one of the most extensive kimberlite fields in the world.

Short Sale

A short sale involves an investor selling securities that they do not own. A short sale is performed in the belief that the price of the security being sold will go down. The seller can then cover the sale by purchasing the security at a lower price, making a profit based on how far the price has fallen. Short sellers face specific regulations in the markets.

Short Selling

Short selling is pure speculation. It's what a mathematician calls a 'negative sum game', since the winners have to outguess the losers by a large enough factor to pay associated costs. It doesn't enjoy any of the advantages of conservative investing. Then too, the returns are upside down. When you buy stocks, gains are theoretically unlimited and the most you can lose is 100%. When you sell short, your maximum gain is 100% (if the stock you've shorted goes to zero). But a short seller's potential losses are limitless.

Singapore Fund

New York symbol SGF, is a closed-end fund that invests in Singapore stocks.

Sleeman Breweries

formerly Toronto symbol ALE, is a leading Canadian brewer. The company was acquired by Sapporo Breweries in 2006.

Sleep Country Canada Income Fund

formerly Toronto symbol SMU.UN, is the largest retailer of mattresses in Canada. The company was taken private in August 2008.

Snap-On

New York symbol SNA, makes hand and power tools for auto mechanics.

SNC-Lavalin Group

Toronto symbol SNC, is a leading engineering and construction company.

Sobeys

formerly Toronto symbol SBY, is Canad''s second-largest food retailer after Loblaw. The company was acquired by parent Empire Co. in July 2007.

Socially Responsible Investing

Socially responsible investing is an investment strategy that selects suitable investments based on social, environmental and/or ethical criteria as well as financial criteria.

Sony

New York symbol SNE, is one of the world's leading makers of consumer electronics. Products include TV sets, computers and its PlayStation video game console. It also owns Columbia Pictures.

Sovereign Wealth Funds

A sovereign wealth fund is a state-owned investment fund. These funds are usually financed from an economic surplus, such as from the sale of oil, and have been in existence since the 1950's.

Split Share Company

A split-share company issues two classes of shares. The capital shares get all or most of the capital gains and losses and dividend income over and above the quarterly amount due to the preferred shares.
Many split share companies, come on the market with a plan for winding themselves up on a fixed schedule, often as little as five years. That's another drawback to split shares - investor's might eventually incur additional brokerage costs to reinvest the proceeds after redemption. In addition, outside an RRSP, redemptions may expose investors to unwanted tax liabilities.
However, we advise against buying the capital or preferred shares of any split share issue. Our view is that it's a rare investor who needs dividend income but not capital gains, or vice versa. Investors are better off investing directly in the underlying firms so they can avoid the yearly management fees and other split-share costs, and the forced wind-up at a future date.

SR Telecom

formerly Toronto symbol SRX, makes and installs wireless communications equipment. The company filed for court protection from creditors in 2007. It was acquired in 2008.

Stanley Works

New York symbol SWK, makes a wide variety of hand and power tools for consumer and industrial users. It also provides building security systems and services.

Stantec

Toronto symbol STN, offers clients a broad range of consulting, project delivery, design/build and technology services.

State Street

New York symbol STT, provides custodial, accounting and other services to large financial institutions, such as mutual funds and pension plans. Also provides asset management services.

Stock Dividend

A payment made to common shareholders in the form of additional shares. This increases the number of shares each stockholder owns without impacting the proportional ownership of the company.

Stock Investing

Stock investing has grown in popularity with the advent of discount brokerages that reduced the fees involved in trading individual stocks. Along with investing, the appetite for stock advice surged, spawning books, newsletters and televisions shows related to the topic.

Stock Market

There are five economic sectors in the stock market: manufacturing & industry, resource & commodities, the consumer sector, finance and utilities.
Long-term studies show that the Canadian stock market as a whole generally produces total pre-tax annual returns of 10% to 11%, or around 7.5% after inflation.
Many investors and money managers find that it's hard to beat the market's long-term average returns over long periods (many years if not decades). But it's easy to fall below the average.
Investing in stocks can earn less than the market return for a variety of reasons. One is sheer randomness. Others include taxes; brokerage commissions (particularly if you trade more than absolutely necessary); mutual fund MERs' getting caught up in stock-market fads; buying speculative stocks that collapse; buying financial-industry creations that are virtually certain to produce meager profits if not losses for the bulk of participants (stock options and hedge funds are a couple of key examples); loading up on risky investments at market peaks; selling out in despair at market bottoms; and every other market error possible.

Stock Market Bubble

A stock market bubble is an investment term for a market that has become overvalued by every measure of stock valuation. A recent example of this is the dot com bubble of the 90's.

Stock Market Correction

A stock market correction is a short-term decline in what the market sees as overpriced stocks that brings stock prices back in line with their perceived realistic values.

Stock Market Futures

Stock market futures are legal contracts to buy a stock at a specific price at a specific date in the future. Futures differ from options because they are a binding commitment to purchase rather than the opportunity to do so.

Stock Pickers Digest

Stock Pickers Digest focuses on the aggressive segment of the market. It looks at a number of small-cap stocks, including gold, junior oil, mining and high tech. These stocks are faster moving and less-well-established, so the service includes a weekly telephone/email hotline in addition to the monthly newsletter. The newsletter picks aggressive stocks, but at the same time it looks for above-average value - rising sales, good balance sheets and a strong hold on a growing market. It features both Canadian and U.S. stocks. You can subscribe on-line at www.stockpickersdigest.ca, or by calling 1-800-422-9550.

Stop Buy Order

An order to buy that is placed above the current market price. This becomes a market order when the price of the stock rises to a specific price. A stop buy order is used to protect against losses from a short sale.

Stop Loss Order

An order to sell that is placed below the current market price. This becomes a market order when the price of the stock falls to a specific price. A stop loss order is used to protect a profit or limit a loss on an investment.

Stornoway Diamond

Toronto symbol SWY, holds interests in diamond exploration properties in Canada and Botswana.

Sun Life Financial

Toronto symbol SLF, offers savings, retirement, pension and life and health insurance products and services to individuals and corporations.

Supervalu

New York symbol SVU, is the second-largest supermarket operator in the United States behind Kroger.

Swiss Helvetia Fund

New York symbol SWZ, is a closed-end fund that invests mainly in large-capitalization Swiss stocks.

Symantec

NASDAQ symbol SYMC, makes software that helps protect computers from viruses and electronic attacks. Its best-known product is the top-selling Norton Anti-Virus program.

Sysco

New York symbol SYY, is North America's largest supplier of food and related products to restaurants, schools, hotels and hospitals.

T

T. Rowe Price

NASDAQ symbol TROW, sells and manages over 90 no-load mutual funds.

Tahera Diamond

formerly Toronto symbol TAH, explores for diamonds in Nunavut. The company ceased operations in 2008.

Tax Shelter

A tax shelter is any sort of investment that reduces or eliminates your tax liability. In Canada, tax shelters are closely monitored and regulated.

Tax-Free Savings Account

A tax-free savings account, or TFSA is a registered savings account. The account earns investment income without being subject to tax. Contributions to the account are not tax deductible, but withdrawals are not taxable. TFSAs have a contribution limit. They began at the start of 2009.

TD Mutual Funds

TD Mutual Funds is an investment arm of the TD Canada Trust Corporation. It offers investors a choice of 65 different mutual funds.

Tech Stocks

Tech stocks are a category for companies that are involved in the research, development and production of technology such as electronics or software. With high research and development budgets tech stocks rarely pay dividends and are often classified as growth stocks.

Technical Analysis

Also known as charting, this is a market analysis technique that uses charts of previous stock price movements and trading volumes to help predict future price movements.

Teck Cominco

Toronto symbol TCK.B, is the world's largest producer of zinc, which helps prevent steel from rusting. The company is also a major producer of copper and gold. It recently acquired Fording Canadian Coal Trust.

Telus

Toronto symbol T.A, provides local and long distance telephone service in B.C., Alberta and parts of Quebec, and wireless service across Canada.

Templeton Emerging Markets Fund

New York symbol EMF, is a closed-end fund that invests in equities from emerging economies.

Tempur-Pedic

New York symbol TPX, makes and distributes Swedish Mattresses and Neck Pillows made from its proprietary Tempur pressure-relieving material.

Tennant

New York symbol TNC, makes industrial floor cleaning equipment, including scrubbers, sweepers and polishers.

Teradata

New York symbol TDC, makes computers and software that capture and store large quantities of a business' data, such as its sales and inventory. Analyzing this data for trends helps its clients expand their profits.

Teranet

formerly Toronto symbol TF.UN, manages Ontario's electronic land registration system. The company was acquired by the Ontario Municipal Employees Retirement System in November 2008.

Terasen

formerly Toronto symbol TER, distributes natural gas in B.C. It also provides consulting and engineering services. The company is now owned by Fortis Inc.

Texas Instruments

New York symbol TXN, is the world's leading maker of chips for cellphones and other portable devices.

The Successful Investor

The Successful Investor service includes a monthly newsletter, weekly telephone/email hotline and a monthly portfolio supplement. The newsletter recommends high-quality, Canadian stocks that will surge ahead in good markets, and yet hold their own in the face of market declines. It focuses on lower-risk stocks with strong profit and growth potential. You can subscribe on-line at www.thesuccessfulinvestor.com, or by calling 1-800-579-4246.

Theme Mutual Funds

Many mutual funds in Canada have themes that seem to be plucked from today's headlines. However, it pays to stay out of narrow-focus, faddish mutual funds - especially if they come to market when the fad dominates the financial headlines. These themes can badly impact mutual fund performance.
Theme mutual funds can face a double disadvantage, because they appeal to impulsive investors who pour their money in just as the fad hits its peak. This forces the manager to pay top prices - perhaps to bid prices up higher than they'd otherwise go - even if this goes against his or her judgment. These same investors are also apt to flee when prices hit their lows, forcing the mutual fund manager to sell at the bottom. But when a fad dies out, as they all do, liquidity dies out with it. The manager may have to dump the mutual fund's holdings when demand is at its weakest, forcing prices lower than they deserve to go, with a corresponding impact on the mutual fund performance.

Thin Trader

A thin trader is a stock with a small average daily trading volume, making it less liquid.

Third Canadian General Investment Trust

Toronto symbol THD, is a closed-end fund that holds 68% of its assets in units of Canadian General Investments. The rest of its holdings are mostly high-quality income trusts and stocks.

Thomson Reuters

Toronto symbol TRI, divides its operations into two divisions: Markets, which provides financial information products to banks and other financial institutions; and Professional, which sells specialized information to professionals in the legal, accounting, scientific and healthcare fields.

Tight Gas Formation

Also know as unconventional gas formations, these formations are situated in sand, coal or shale and are too dense or "tight" to allow gas to flow freely to the well bore. Specialized fracturing techniques are used to release the gas by cracking the sand, coal or shale with high water pressure and sand.

Tim Hortons

Toronto symbol THI and New York symbol THI, operates coffee-and-donut shops in Canada and the United States. Franchisees operate most of its stores.

Top-down Sector Rotation Style

This style under-weights or over-weights sectors of the stock market depending on a forecast of the stage of the economic cycle or other factors. Few sector rotators succeed over long periods, because they need to guess right twice. They have to pick the top sectors, and they need to pick the stocks to rise within those sectors. Consistently succeeding at both is extremely difficult.

Toromont Industries

Toronto symbol TIH, is one of the world's largest Caterpillar dealerships. It also makes compression systems for natural gas, fuel gas and carbon dioxide in addition to process systems and industrial and recreational refrigeration systems.

Toronto-Dominion Bank

Toronto symbol TD, is Canada's second-largest bank by assets.

Torstar

Toronto symbol TS.B, publishes The Toronto Star, Canada's largest daily newspaper, and other dailies and community newspapers in Southern Ontario. It also owns Harlequin Enterprises, the world's largest publisher of romance novels.

Toyota

New York symbol TM, is the worlds largest carmaker.

Trading Stocks Online

Trading stocks online is a relatively recent phenomenon that has been made possible by discount stock trading and the Internet. Investors can now trade with ease from their home computers.

TransAlta

Toronto symbol TA, operates unregulated power plants in Canada, the United States and Australia.

TransAlta Power

formerly Toronto symbol TPW.UN, owns a 49.99% interest in TransAlta Cogeneration, L.P., which in turn holds interests in five gas-fired plants in Ontario, Saskatchewan and Alberta. The company was acquired in 2007.

TransCanada

Toronto symbol TRP, operates pipelines that transport natural gas, mainly from Alberta to markets in central and eastern Canada. TransCanada owns or holds interests in over 20 power plants in Canada and the United States.

Transcontinental

Toronto symbol TCL.A, provides direct marketing services, commercial printing services, and publishes magazines and newspapers, primarily in eastern Canada.

Trilogy Energy

Toronto symbol TET.UN, holds oil and gas properties in the Kaybob and Grande Prairie areas of central Alberta.

Trimble Navigation

NASDAQ symbol TRMB, makes GPS devices and technology for four main markets: Engineering and construction; Agriculture GPS products; Fleet products to track moving vehicles; and GPS components for major customers around the world.

True Energy Trust

Toronto symbol TUI.UN, produces oil and gas in West Central Alberta and West Central Saskatchewan.

TSX Venture Exchange

The TSX Venture Exchange is designed for emerging companies that don't yet meet the requirements for listing on the TSX. The TSX Venture Exchange offers companies a flexible system, with minimum listing requirements tailored to a company's industry sector, stage of development, financial performance and operational resources.
To move to the TSX, companies must meet minimum requirements such as the number of publicly held shares with a certain market value, and a certain number of public shareholders. The requirements then vary depending on whether a company is classified as industrial, mining or oil and gas - and at what stage the company is at in its development.

Tucows

Toronto symbol TC, provides domain name registrations and other services to web-hosting companies, Internet service providers (ISPs) and others.

Tupperware

New York symbol TUP, makes high-quality products for the home and kitchen, including plastic food and beverage containers and children's educational toys. The company also makes a wide range of beauty products, including cosmetics, bath oils and fragrances.

U

United Corporations

Toronto symbol UNC, is a closed-end fund that invests in a wide variety of average-quality to above-average quality Canadian and foreign stocks.

United Technologies

New York symbol UTX, has five main businesses: Carrier makes heating and air conditioning equipment; Otis makes and services elevators; Pratt & Whitney makes aircraft engines; Flight Systems makes helicopters and aircraft controls; and UTC Fire & Security provides security and fire protection services.

V

Valuvesting

ValuVesting is a system for uncovering "conservative" stocks that can deliver quick and spectacular returns. Developed by Pat McKeough, the system has a proven record of success.

Verigy

NASDAQ symbol VRGY, designs and makes test systems used in the production of computer chips.

Verizon

New York symbol VZ, provides telephone services in 28 U.S. states. Through 55%-owned Verizon Wireless, a joint venture with UK-based Vodafone, it also provides wireless service in all 50 states.

Versacold

formerly Toronto symbol ICE.UN, operates public refrigerated warehouses in Canada, the United States, Australia, New Zealand and Argentina. The company was acquired by Iceland's Eimskip in 2007.

W

Wachovia

New York symbol WB, is a leading provider of financial services in the United States.

Wall Street Stock Forecaster

Wall Street Stock Forecaster includes a monthly newsletter, weekly telephone/email hotline and a monthly portfolio supplement. The newsletter recommends high-quality, mostly U.S. stocks that will surge ahead in good markets, and yet hold their own in the face of market declines. It helps investors build a well-balanced, diversified portfolio, whatever their particular risk/reward level. The newsletter also gives a clear, easy-to-read analysis of how you should build your portfolio. You can subscribe on-line at www.wssf.ca, or by calling 1-877-438-9773.

War Chest

War chest is the term used to describe the cash reserves of a corporation. Large cash reserves can be used to fund takeovers or defend against them.

Warrant

A warrant is a certificate that offers its holder the right to buy a security at a set price for a specified time. Warrants are frequently given as a promotion along with new issues to persuade investors to buy them.

Washington Federal

NASDAQ symbol WFSL, operates savings & loan branches in the western U.S. states.

Wells Fargo

New York symbol WFC, provides a wide variety of financial services in the U.S. Internationally, it operates in Canada, the Caribbean and Central America.

Westaim

Toronto symbol WED, owns 74.5% of Nucryst Pharmaceuticals (Toronto symbol NCS), whose medical products prevent infection in burns.

Western Union

New York symbol WU, provides money transfer and foreign exchange services.

Weyerhaeuser

New York symbol WY, is a leading forest products company. It owns or leases over 30 million acres of timberland in the United States and Canada.

Windstream

New York symbol WIN, provides local and long distance telephone service to customers in 16 states. Most of its customers are in rural areas.

World Stock Market

While there is no official stock market for the entire world, markets are getting more and more connected. The stock markets in the United States are considered by many to be the most important. Foreign companies list on them using American depository receipts.

Writedown

To write down an asset is to reduce its value. For example, the subprime crisis in the United States led to many banks writing down the value of their loans. This led to a stock market sell-off of bank stocks.

Wyndham Worldwide

New York symbol WYN, is one of the world's largest hospitality companies. It owns 6,560 franchised hotels plus various other vacation resorts, rental properties, luxury clubs and timeshares.

X

Xerox

New York symbol XRX, makes copiers, printers, scanners and fax machines. The company also supplies consulting and maintenance services.

Y

Yamana Gold

Toronto symbol YRI, owns and operates seven operating mines in five countries in North and South America, along with interests in two others plus five development stage properties. It also holds extensive exploration properties.

Yum! Brands

New York symbol YUM, operates 35,000 restaurants in over 100 countries. It has five main banners: KFC (fried chicken), Pizza Hut, Taco Bell (Mexican food), A&W (hamburgers) and Long John Silver (seafood).

Z

Zargon Energy

Toronto symbol ZAR.UN, has oil and gas production assets in Alberta, Manitoba, Saskatchewan and North Dakota.