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STOCKS TRADING TERMSAa
Companies listed on TSX Venture Exchange that meet higher asset, market
value and shareholder distribution requirements than those classified
as venture companies. This classification is related to TSX Venture
Exchange Tier 1 status.
A securities firm is classified as an agent when it acts on behalf of
its clients as buyer or seller of a security. The agent does not own
the security at any time during the transaction.
Alberta Securities Commission (ASC)
The provincial regulatory agency responsible for overseeing the capital market in Alberta.
An order that must be filled completely or the trade will not take place.
Options that can be exercised any time during their lifetime. These are also known as open options.
A publication, including financial statements and a report on
operations, issued by a company to its shareholders at the company's
Permits Participating Organizations to voluntarily withhold their true
broker identities when entering orders and trades on TSX trading
The simultaneous purchase of a security on one stock market and the
sale of the same security on another stock market at prices which yield
Ask or Offer
The lowest price at which someone is willing to sell the security. When
combined with the bid price information, it forms the basis of a stock
The aggregate size in board lots of the most recent ask to sell a particular security.
Everything a company or person owns, including money, securities,
equipment and real estate. Assets include everything that is owed to
the company or person. Assets are listed on a company's balance sheet
or an individual's net worth statement.
The notification to the seller of an option by the clearing corporation
that the buyer of the option is enforcing the terms of the option's
When the price of the underlying equity, index or commodity equals the strike price of the option.
Averages and Indices
Statistical tools that measure the state of the stock market or the
economy, based on the performance of stocks, bonds or other components.
Examples are the S&P/TSX Venture Composite Index, the S&P/TSX
Composite Index, the Dow Jones Industrial Average and the Consumer
Buying more of a security at a price that is lower than the price paid
for the initial investment. The aim of averaging down is to reduce the
average cost per unit of the investment.
One-hundredth of a percentage point. For example, the difference between 5.25% and 5.50% is 25 basis points.
A market in which stock prices are falling.
A type of underwriting where the investment firm acts as an agent. The
firm agrees to use its best efforts to sell the new issue of
securities, but does not guarantee the issuing company that the
securities to be issued will be sold.
A measurement of the relationship between the price of a stock and the movement of the whole market.
An order with a limit price better than the best price on the opposite
side of the market. A better-priced buy order has a limit price higher
than the best offering. A better-priced sell order has a limit price
lower than the best bid. These are available only at the opening.
The highest price a buyer is willing to pay for a stock. When combined
with the ask price information, it forms the basis of a stock quote.
The aggregate size in board lots of the most recent bid to buy a particular security.
A mathematical model used to calculate the theoretical price of an option.
Blue Chip Stocks
Stocks of leading and nationally known companies that offer a record of
continuous dividend payments and other strong investment qualities.
A standard trading unit as defined in UMIR (Universal Market Integrity
Rules). The board lot size of a security on Toronto Stock Exchange or
TSX Venture Exchange depends on the trading price of the security, as
Trading price per unit is less than $0.10 - board lot size is 1,000 units
Trading price per unit is $0.10 to $0.99 - board lot size is 500 units
Trading price per unit is $1.00 or more - board lot size is 100 units
Promissory notes issued by a corporation or government to its lenders,
usually with a specified amount of interest for a specified length of
An electronic record of all pending buy and sell orders for a particular stock.
Orders that do not trade immediately upon entry. These orders are also known as outstanding orders.
A type of underwriting where the brokerage firm acts as principal. The
brokerage firm risks its own capital to purchase all of the securities
to be issued. If the price of the securities decreases before the
brokerage firm has had a chance to resell the securities to its
clients, the firm absorbs the loss.
British Columbia International Commercial Arbitration Centre (BCICAC)
An arbitration centre established to resolve business disputes that
have not been resolved through normal channels. As part of its
services, the centre will accept claims up to $50,000 from clients of
participating members of the Investment Dealers Association of Canada
(Pacific Division) and TSX Venture Exchange.
British Columbia Securities Commission (BCSC)
The provincial government agency responsible for administering and
enforcing the Securities Act and the Commodity Contract Act of British
Broker or Brokerage Firm
A securities firm or a registered investment advisor affiliated with a
firm. Brokers are the link between investors and the stock market. When
acting as a broker for the purchase or sale of listed stock, the
investment advisor does not own the securities but acts as an agent for
the buyer and seller and charges a commission for these services.
A market in which stock prices are rising.
Any day from Monday to Friday, excluding statutory holidays.
A trust that usually generates cash flows from one business or
operating company, unlike an investment fund, which generates income
from a diversified pool or portfolio. The trust holds debt and equity
interests of an operating business. Businesses that exhibit these
characteristics may opt for a trust structure over a corporate
structure to take advantage of tax efficiency.
If a broker fails to deliver securities sold to another broker on the
settlement date, the receiving broker may buy the securities at the
current market price of the stock and charge the delivering broker the
cost difference of such a purchase.
A type of order that is filled only in a visible ("lit") market. A bypass order ignores dark pools and undisplayed orders.
An option which gives the holder the right, but not the obligation, to
buy a fixed amount of a certain stock at a specified price within a
specified time. Calls are purchased by investors who expect a price
Canadian Depository for Securities Limited (CDS)
CDS Clearing and Depository Services Inc. (CDS) is Canada's national
securities depository, clearing and settlement hub. CDS supports
Canada's equity, fixed income and money markets, and is accountable for
the safe custody and movement of securities, accurate record keeping,
the processing of post-trade transactions, and the collection and
distribution of entitlements relating to the securities that have been
deposited by participants.
Canadian Derivatives Clearing Corporation (CDCC)
The designated central clearing corporation for options and futures
trading on the Bourse de Montréal. Previously known as Trans Canada
Options Inc. (TCO).
Canadian Investor Protection Fund (CIPF)
A fund established to protect customers in the event of insolvency of a
member of any of the following sponsoring self-regulatory
organizations: the Bourse de Montréal, Toronto Stock Exchange, TSX
Venture Exchange and the Investment Dealers Association of Canada.
Canadian Securities Institute (CSI)
The national educational organization of the securities industry
sponsored by the Investment Dealers Association of Canada, Toronto
Stock Exchange, the Bourse de Montréal and TSX Venture Exchange.
To an economist, capital means machinery, factories and inventory
required to produce other products. To investors, capital means their
cash plus the financial assets they have invested in securities, their
home and other fixed assets.
Capital Gain or Loss
Profit or loss resulting from the sale of certain assets classified
under the federal income tax legislation as capital assets. This
includes stocks and other investments such as investment property.
Capital Gains Distribution
A taxable distribution out of taxable gains realized by the issuer. It
is generally paid to security holders of trusts, partnerships, and
funds. Like all distributions, it may be paid in securities or cash.
The amount, payable date, and record date are established by the
issuer. The exchange that the issue is listed on sets the
ex-dividend/distribution (ex-d) date for entitlement.
Capital Pool Companies
The TSX Venture Exchange Capital Pool Company (CPC) program offers a
unique listing opportunity that brings experienced management teams
with proven public financing ability together with development-stage
companies in need of capital and management expertise. Unlike
traditional public companies, capital pools list and begin trading
without an operating business. The nature of their business is to find
and acquire a promising early-stage venture, and their treasuries are
funded expressly for the search and due diligence process.
All shares representing ownership of a company, including preferred and common shares.
A form of financial trust that differs from other trusts in that it
looks more like a fixed income instrument than an equity issue. Capital
trusts are generally issued by banks or other financial intermediaries.
These investment vehicles trade like a debt instrument with $1,000 face
value and trade with accrued interest.
The business objective of capital trusts is to acquire and hold assets
that will generate net income for distribution to unit holders. The
trust's assets may consist of residential mortgages, mortgage
co-ownership interests, mortgage-backed securities, other eligible
investments, and other qualified debt obligations. Capital trust assets
are usually acquired from and serviced by the issuing institution
and/or its affiliates.
Any change in the issued and outstanding listed securities of an
issuer. This change may involve the issuance, repurchase, or
cancellation of listed securities or listed securities that are
issuable upon conversion or exchange of other securities of an issuer.
Capitalization Effective Date
The date that the capitalization change is reflected in the issuer's
share register, regardless of when it is reported to the Exchange.
Capitalization or Capital Structure
Total dollar amount of all money invested in a company, such as debt,
preferred and common stock, contributed surplus and retained earnings
of a company.
Indices for which there is a maximum relative weight by market
capitalization for any one constituent. Any individual constituent of
the index can represent no more than a specified percent of the index.
The individual constituents of the S&P/TSX Capped Composite and
S&P/TSX Capped 60 indices are capped at 10%, while the individual
constituents of the S&P/TSX Capped sector indices are capped at 25%.
A special term attached to an equity order that requires the trade to
be settled either the same day or the following business day for cash.
Cash Dividend / Distribution
A dividend/distribution that is paid in cash.
Settlement of an option contract not by delivery of the underlying
shares, but by a cash payment of the difference between the strike or
exercise price and the underlying settlement price.
The physical document that shows ownership of a bond, stock or other security.
Changes in Stock List
Any modification to the list of tradable issues of an exchange. These
modifications include: new listings, supplemental security listings,
substitutional listings, deletions, name changes, and stock symbol
TSX Venture Level 1 (CL1) is a real-time service for listed junior
equities that provides trades, quotes, corporate actions and index
information from TSX Venture Exchange.
TSX Venture Level 2 (CL2) is a real-time service for junior equities
that shows all of the committed orders and trades for each TSX Venture
Exchange listed security in real time.
Any business day on which the clearing corporation is open to effect trade clearing and settlement.
The trading number of the clearing Participating Organization or Member.
An order from a retail customer of a Participating Organization.
The price of the last board lot trade executed at the close of trading. See also: Board Lot.
Closed-End Investment Fund
An investment trust that issues a fixed number of securities that trade
on a stock exchange or in the over-the-counter market. Assets of a
closed-end fund are professionally managed in accordance with the
fund's investment objective and policies and may be invested in a wide
range of financial instruments/assets. Like other publicly traded
securities, the market price of closed-end fund securities fluctuates
and is determined by supply and demand in the marketplace.
An order to close out an existing open futures or options contract.
The fee charged by an investment advisor or broker for buying or selling securities as an agent on behalf of a client.
Products used for commerce that are traded on a separate, authorized
commodities exchange. Commodities include agricultural products and
natural resources such as timber, oil and metals. Commodities are the
basis for futures contracts traded on these exchanges.
Common Shares or Common Stock
Securities that represent part ownership in a company and generally
carry voting privileges. Common shareholders may be paid dividends, but
only after preferred shareholders are paid. Common shareholders are
last in line after creditors, debt holders and preferred shareholders
to claim any of a company's assets in the event of liquidation.
When an order trades all of its specified volume.
Conditional Listing Application (CLA)
When a company applies to list on Toronto Stock Exchange, a CLA
consists of the Toronto Stock Exchange listing agreement and the
Consolidated Short Position Report
A consolidated report that includes the total shares short (as of the
trade date) and the net change from the previous report, for both TSX
and TSX Venture Exchange listed issues. Under UMIR rule 10.10, all TSX
and TSX Venture Exchange Participating Organizations and Members must
report the firm's short position on a semi-monthly basis to TSX
Datalinx. Non-clearing firms may report through the firm that is
responsible for their clearing.
A company's ongoing obligation to inform the public of significant corporate events, both favourable and unfavourable.
A security of an issuer (for example - bonds, debentures, or preferred
shares) that may be converted into other securities of that issuer, in
accordance with the terms of the conversion feature. The conversion
usually occurs at the option of the holder of the securities, but it
may occur at the option of the issuer.
Corporation or Company
A form of business organization created under provincial or federal
laws that has a legal identity separate from its owners. The
shareholders are the corporation's owners and are liable for the debts
of the corporation only up to the amount of their investment. This is
known as limited liability.
A trade that occurs when two accounts within the same Participating
Organization/Member wish to buy and sell the same security at an agreed
price and volume. With some approved exceptions, crosses can only occur
within the current bid and ask for the stock.
After the close of the regular trading day, crosses can be executed
between 4:10 p.m. and 5:00 p.m. ET at the last sale price of the stock.
With dividend. The owner of shares purchased cum dividend is entitled
to an upcoming already-declared dividend. The opposite of this is ex
With rights. The owner of shares purchased cum rights is entitled to
forthcoming, already-declared rights. The opposite of this is ex rights.
The trading day before the ex-dividend/distribution (ex-d) date. It is
the last day on which the securities can be traded and on which the
buyer is entitled to the dividend/distribution.
CUSIP © (Committee on Uniform Security Identification Procedures) is a
standard system of securities identification and securities
description, which is used in electronic processing and recording of
securities transactions in North America. As a service bureau to the
Canadian financial industry, CDS INC., a subsidiary of CDS, acts as
liaison between Standard & Poor's (S&P) and the issuing
companies for the assignment of CUSIP numbers and descriptions. A CUSIP
number uniquely identifies a Canadian or American security issue and
A stock of a company in an industry sector that is particularly sensitive to swings in economic conditions.
Daily Price Limit
The maximum price advance or decline permitted for a futures contract
in one trading session compared to the previous day's settlement price.
An order that is valid only for the day it is entered. If the order is
still outstanding when the market closes, it will be purged overnight.
A long-term debt instrument issued by corporations or governments that
is backed only by the integrity of the borrower, not by collateral. A
debenture is unsecured and subordinate to secured debt. A debenture is
unsecured in that there are no liens or pledges on specific assets.
The price paid per $100 of a debt instrument's face value traded. A
debt instrument trading at par would have a price of $100. A price
below face value (for example, $99.1) indicates that the debt
instrument has traded at a discount. A price above face value (for
example, $101.1) indicates that the debt instrument has traded at a
The total dollar value of volume traded on one side of the transaction
for a specified period. It equals price multiplied by volume divided by
The number of debt instruments traded on one side of the transaction
for a specified period multiplied by the face value of the debt
A stock purchased from a company that has maintained a record of stable
earnings and continuous dividend payments through periods of economic
Delayed Delivery Order
A special term order in which there is a clear understanding between
the buying and selling parties that the delivery of the securities will
be delayed beyond the usual three-day settlement period to the date
specified in the order.
The removal of a security's listing on a stock exchange. This is done
when the security no longer exists, the company is bankrupt, the public
distribution of the security has dropped to an unacceptably low level,
or the company has failed to comply with the terms of its listing
The status of a security that is no longer listed on the Exchange. The security could trade on another market.
An issuer whose securities are no longer listed on Toronto Stock
Exchange or TSX Venture Exchange. A listed issuer is delisted when the
last listed security of the issuer is delisted.
The tender and receipt of the underlying commodity or the payment or
receipt of cash in the settlement of an open futures contract.
The calendar month in which a futures contract may be satisfied by making or taking delivery.
A ratio that measures an option's price movement compared to the
underlying interest's price movement. Delta values have a range of 0 to
1. Deep in-the-money options have deltas that approach 1.
The combined desire, ability and willingness on the part of consumers
to buy goods or services. Demand is determined by income and by price,
which are, in part, determined by supply.
A securities account created when a client gives a partner, director or
qualified portfolio manager of a Participating Organization specific
written authorization to select securities and execute trades on the
The portion of the issuer's equity paid directly to the security
holders. It is generally paid to security holders of trusts,
partnerships, and funds. The issuer or its representative provides the
amount, frequency (monthly, quarterly, semi-annually, or annually),
payable date, and record date. The exchange that the issue is listed on
sets the ex-dividend/distribution (ex-d) date for entitlement.
Limiting investment risk by purchasing different types of securities
from different companies representing different sectors of the economy.
The portion of the issuer's equity paid directly to shareholders. It is
generally paid on common or preferred shares. The issuer or its
representative provides the amount, frequency (monthly, quarterly,
semi-annually, or annually), payable date, and record date. The
exchange that the issue is listed on sets the ex-dividend/distribution
(ex-d) date for entitlement. An issuer is under no legal obligation to
pay either preferred or common dividends.
Dividend Reinvestment Plan
A means of reinvesting dividends, which would otherwise be paid to the shareholder in cash, in additional stock of the company.
Equal to the indicated annual dividend rate per share divided by the
security's price. For example, if the indicated dividend rate is $1.00
and the closing price is $50.00, $1 divided by $50.00 equals 2%.
Dividend/Distribution Payable Date
The date set by the issuer on which the dividend/distribution will be paid.
Dividend/Distribution Record Date
The date on which a security holder must be registered as a holder of an issue to receive the dividend/distribution.
Dollar Cost Averaging
Investing a fixed amount of dollars in a specific security at regular
set intervals over a period of time. Dollar cost averaging results in a
lower average cost per share, compared with purchasing a constant
number of shares at set intervals. The investor buys more shares when
the price is low and buys fewer shares when the price is high.
Dow Jones Industrial Average (DJIA)
An average made up of 30 actively traded stocks. The DJIA is calculated
by adding the prices of each of the 30 stocks and dividing by a
divisor. The DJIA is one of the most widely quoted stock market
averages in the media.
A trade is on a downtick when the last trade occurred at a price lower than the previous one.
Energy or Royalty Trust
Investment vehicles that may engage in the development, acquisition,
and/or production of oil and gas reserves. The trust receives royalty
income from producing properties (essentially, net cash flow) and then
sells interests in the trust (called trust units) to investors.
Conventional oil and gas royalty trusts are actively managed portfolios
holding assets of mature producing properties. Substantially all of the
cash flow generated by the oil and gas assets, net of certain
deductions, such as administrative expenses and management fees, is
passed on to the unit holders as royalty income. Capital expenses may
also be deducted, but are usually subject to restrictions on the
amount. The distributions are highly dependent upon the cash flow
generated by the trust. In general, the largest variable in determining
the level of cash flow is the price of crude oil and natural gas.
Royalty trusts provide an alternative (from owning the shares of
individual companies) for investors to participate in the oil and gas
Common and preferred stocks, which represent a share in the ownership of a company.
The dollar value of securities issued in accordance with a TSX or TSX
Venture Exchange approved transaction. The value equals the number of
securities multiplied by the offering price. The various forms of
financial instruments may have an effect on determining the price or
the number of securities.
An option contract that grants the holder the right to buy or sell a
specific number of shares of stock at a specified price during a
specific period of time.
The price per share traded.
The total dollar value of volume traded on one side of the transaction
for a specified period. It equals price multiplied by volume.
The total number of shares traded on one side of the transaction.
The outstanding securities of an issuer that are not freely tradable,
because they are subject to an escrow agreement that restricts the
ability of certain security holders of that issuer from trading or
otherwise dealing in those securities until certain conditions are
Options that can be exercised only on their expiration date.
The holder of shares purchased ex dividend is not entitled to an
upcoming already-declared dividend, but is entitled to future dividends.
The holder of shares purchased ex rights is not entitled to already-declared rights, but is entitled to future rights issues.
Exchange Offering Prospectus (EOP)
A form of prospectus that allows a company to conduct a prospectus
offering through the facilities of a stock exchange, rather than
issuing them directly to the public. The company then applies to list
the securities on the exchange.
A security of an issuer that is exchangeable for securities of another
issuer (usually a subsidiary) in accordance with the terms of the
exchange feature. The exchange may be at the option of the holder or at
the option of the issuer of the securities.
Exchange-Traded Fund (ETF)
A special type of financial trust that allows an investor to buy an
entire basket of stocks through a single security, which tracks and
matches the returns of a stock market index. ETFs are considered to be
a special type of index mutual fund, but they are listed on an exchange
and trade like a stock. Also known as an index participation unit (IPU).
Ex-dividend/distribution date. The date that the buyer of a stock is
not entitled to the upcoming declared dividend/distribution, because
the buyer will not be a holder of record. The ex-d date is two clearing
days before the record date. The exchange that the issue is listed on
sets the ex-d date.
A listed issuer that has satisfied listing requirements as outlined in
Section 502 of the Listing Requirements Manual. An exempt issuer is not
subject to special reporting rules. This status is generally reserved
for senior listed issuers.
The act of an option holder who chooses to take delivery (calls) or
make delivery (puts) of the underlying interest against payment of the
The date at which an option contract expires. This means that the option can't be exercised after that date.
Extra Dividend / Distribution
A dividend/distribution paid in addition to the regularly established
dividend/distribution of the issuer. Like all dividends/distributions,
it may be paid in securities or cash and the amount, payable date, and
record date are established by the issuer. The exchange that the issue
is listed on sets the ex-dividend/distribution (ex-d) date for
entitlement. Extra dividends/distributions are sometimes referred to as
The cash denomination of the individual debt instrument. It is the
amount of money that the holder of a debt instrument receives back from
the issuer on the debt instrument's maturity date. Face value is also
referred to as par value or principal.
A disclosure document submitted by a listed company to outline material
changes in its affairs. Filing statements are not used for the purposes
of a financing.
Fill or Kill (FOK) Order
Is eligible to receive a full fill and if not fully filled is cancelled immediately.
Float Quoted Market Value (QMV)
The last price multiplied by the number of outstanding shares. For the
S&P/TSX index, the QMV is based on float shares, not on total
outstanding shares. Float shares are total outstanding shares less any
control block position, as defined by the Standard & Poor's index
Floating Rate Security
A security whose interest rate or dividend changes with specified
market indicators. A floating rate is one that is based on an
administered rate, such as a prime rate.
Flow-Through Shares Financing
The dollar value of flow-through shares issued in accordance with a TSX
or TSX Venture Exchange approved transaction. The price is determined
by the policies of the TSX Company Manual or TSX Venture Corporate
Finance Manual; the price is not adjusted for the value of the
flow-through tax benefit available to the security holder. It can be an
initial public offering (IPO), secondary offering, or private placement.
An interruption in trading on a stock, triggered when an order violates parameters set by TSX.
Frequency refers to the given time period on an intraday, daily,
weekly, monthly, quarterly or yearly perspective. Typically, choosing a
weekly or monthly perspective when looking at several years of data
makes it easier to identify long-term trends. Daily charts are useful
for active traders and short-term time period charts.
The "Daily", "1-Minute", "5-Minute", "15-Minute" and "Hourly" frequency
are used for intraday charts and the remaining choices are applicable
to end-of-day charts. This term refers to a TSX Group Historical
Performance charting feature.
The closest month to expiration for a futures or option contract.
Contracts to buy or sell securities at a future date.
The Global Industry Classification Standard (GICS®) is a consistent set
of global economic sector and industry definitions. GICS are used to
classify the constituents of many indices worldwide. GICS is a
four-level classification system. The four levels are: sector, industry
group, industry, and sub-industry. Standard & Poor's and Morgan
Stanley Capital International (MSCI), two providers of global indices,
jointly launched GICS in 1999.
The term used to describe a security that is in proper form to transfer
title, which means that the registered owner has endorsed it. To settle
a sale, the certificate must be surrendered on good delivery by the
seller. A certificate that bears a share transfer restriction will not
constitute good delivery.
Good-Till-Cancelled (GTC) Order
A GTC order will remain in the system until the date that it is filled
or until a maximum of 90 calendar days from date of entry, whichever
happens first. This type of order is also referred to as an open order.
A Participating Organization can cancel a GTC order at any time.
Good-Till-Date (GTD) Order
A GTD order will remain in the system until it is either filled or
until the date specified, at which time it is automatically cancelled
by the system. This is another kind of open order. A Participating
Organization can cancel a GTD order at any time.
The shares of companies that have enjoyed better-than-average growth over recent years and are expected to continue their climb.
Guaranteed Investment Certificate (GIC)
A deposit instrument most commonly available from trust companies or
banks requiring a minimum investment at a predetermined rate of
interest for a stated term, such as one or five years. GICs are
generally non-redeemable and non-transferable before maturity.
A temporary stoppage of trading of the listed securities of an issuer,
which may be imposed by the Exchange, its agent (Market Regulation
Services Inc. (RS)), or voluntarily requested by the issuer. Usually an
issuer's listed securities are halted pending a public announcement of
material information about the issuer, but the Exchange or RS may also
impose a halt if the issuer is not in compliance with Exchange
requirements or if the Exchange determines that it is in the public
interest to do so.
A strategy used to limit investment loss by making a transaction that offsets an existing position.
High Speed Data Feed is a real-time broadcast of market data related to Toronto Stock Exchange and TSX Venture Exchange markets.
The highest price at which a board lot trade on a security was executed during a trading session. See also: Board Lot.
Improving the Market
An order that either raises the bid price or lowers the offering price
is said to be improving the market. The market improves because the
spread between the bid and offer decreases.
Income Deposit Security (IDS)
An exchange-traded, fixed income-like instrument consisting of a
subordinated debt security and a share of common stock packaged
together to form a tax-efficient delivery mechanism to distribute an
issuer's free cash flow to its investors. Investors are paid dividends
from the common share component and interest from the subordinated
debt. The structure was created for U.S.-based companies to replicate
the economic attributes of the Canadian income trust structure -
providing steady, high-yield returns to U.S. and Canadian investors in
U.S. companies. IDSs do not use the trust structure. Also known as
income participating securities (IPS).
Income Participating Security (IPS)
See Income Deposit Security (IDS).
A security with a solid record of dividend payments and which offers a dividend yield higher than the average common stock.
Also called income funds. Income trusts are trusts structured to own
debt and equity of an underlying entity, which carries on an active
business, or has royalty revenues generated by the assets of an active
business. By owning securities or assets of an underlying business, an
income trust is structured to distribute cash flows, typically on a
monthly basis, from those businesses to unit holders in a tax-efficient
manner. The trust structure is typically utilized by mature, stable,
sustainable, cash-generating businesses that require a limited amount
of maintenance capital expenditures. An income trust is an
exchange-traded equity investment that is similar to a common share.
There are four categories of income trusts: business trusts; real
estate investment trusts (REITs); energy trusts; and power, pipeline,
and utility trusts.
A statistical measure of the state of the stock market, based on the
performance of stocks. Examples are the S&P/TSX Composite Index and
the S&P/TSX Venture Composite Index.
Index Participation Unit (IPU)
See Exchange-Traded Fund (ETF).
Indicated Annual Dividend/Distribution
For an issue with a committed dividend/distribution policy, the
indicated annual dividend/distribution (IAD) equals the most recent
dividend/distribution multiplied by the payment frequency. For example,
if an issuer pays $0.04 quarterly, then the indicated rate is $0.04 X 4
or $0.16. In the case of issuers with no committed policy, the IAD is
obtained by adding the dividend/distribution amounts paid in the last
12-month period. Indicated annual dividend/distribution is also
referred to as indicated rate.
Indicative Calculated Closing Price (ICCP)
A feature of Market On Close (MOC), a TSX electronic call market
facility, the Indicative Calculated Closing Price (ICCP) provides a
preliminary indication of what the calculated closing price for a MOC
security would be assuming the regular trading session had ended at the
time of calculation. The ICCP is calculated without reference to
volatility parameters. The ICCP for each MOC security will be broadcast
to the trading community at 3:50 PM ET on each trading day, 10 minutes
prior to the actual Market On Close execution. A key objective of
broadcasting the ICCP is to provide market participants with an early
indication of potentially large price movements at the close. The ICCP
for all MOC securities will be included in the MOC Imbalance Report
that is made available on tmxmoney.com.
An overall increase in prices for goods and services, usually measured by the percentage change in the Consumer Price Index.
Initial Public Offering (IPO)
A company's first issue of shares to the general public.
Non-public information pertaining to the business affairs of a
corporation that could affect the company's share price should the
information be made public.
All directors and senior officers of a company, and those who are
presumed to have access to inside information concerning the company.
An insider is also anyone owning more than 10% of the voting shares of
There are two types of insider trading. The first type occurs when
insiders trade in the stock of their company. Insiders must report
these transactions to the appropriate securities commissions. The other
type of insider trading is when anyone trades securities based on
material information that is not public knowledge. This type of insider
trading is illegal.
For TSX reporting purposes, interlisted is defined as any issue listed
on TSX or TSX Venture Exchange and also listed on a U.S. exchange or
Intermarket Surveillance Group (ISG)
An international committee comprised of members from 31 exchanges
around the world, including every major stock exchange. Membership in
the ISG allows all members to share surveillance and investigative
information to ensure that each regulator has access to the necessary
information to effectively regulate its marketplace. The ISG promotes
effective market surveillance among international exchanges and RS
involvement helps ensure they are continually in touch with other
regulators and part of the development of international best practices.
International Securities Identification Number (ISIN)
The international standard that is used to uniquely identify
securities. It consists of a two-character alphabetic country code
specified in ISO 6166, followed by a nine-character alphanumeric
security identifier (assigned by a national security numbering agency),
and then an ISIN check-digit.
The difference between the current market value of the underlying
interest and the strike price of an option. In-the-money is a term used
when the intrinsic value is positive.
The purchase or ownership of a security in order to earn income,
capital or both. Investments may also include artwork, antiques and
A person employed by an investment dealer who provides investment
advice to clients and executes trades on their behalf in securities and
other investment products.
Initial investment capital necessary for starting a business.
Investment capital usually consists of inventory, equipment,
pre-opening expenses and leaseholds.
A specialist in the investment industry paid by fee to provide advice and research to investors with large accounts.
Securities firms that employ investment advisors to work with retail
and institutional clients. Investment dealers have underwriting,
trading and research departments.
Investment Dealers Association of Canada (IDA)
The national self-regulatory organization of the securities industry.
The Association's role is to foster efficient capital markets by
encouraging participation in the savings and investment process and by
ensuring the integrity of the marketplace.
A closed-end fund that offers investors the ability to buy a security
that represents a portfolio of investments with a specific investment
strategy. These products use funds raised through a public offering to
invest in a portfolio of securities, which are actively managed to
create income streams for investors, typically through a combination of
dividends, capital gains, interest payments, and in some cases, income
from derivative investment strategies. These funds are not directly
related to an operating business. Some examples are: funds of income
funds, senior loan funds, mortgage-backed security funds, and commodity
A corporate function, combining finance, marketing and communications,
to provide investors with accurate information about a company's
performance and prospects.
The dollar value of initial public offering (IPO) securities issued in
accordance with a TSX or TSX Venture Exchange approved transaction. It
is the stated prospectus price multiplied by "the number of securities
issued under the IPO plus the over allotment".
Any of a company's securities or the act of distributing the
securities. Issued shares refer to the portion of a company's shares
that have been issued for sale. A company does not have to issue the
total number of its authorized shares.
The trading status of a class or series of an issuer's listed
securities, such that a class or series of listed securities of an
issuer may be halted, suspended, or delisted from trading.
Issued and Outstanding Securities
Commonly refers to the situation where the number of issued securities
equals the number of outstanding securities. However, under certain
corporate statutes in Canada, an issuer may have issued securities and
then repurchased those securities without cancelling them. In that
case, the securities are issued but are not outstanding. As a result,
the number of issued securities does not equal the number of
The trading status of a listed or formerly listed issuer. Issuer status types include: delisted, listed, suspended, and trading.
The execution and clearing of orders by one member of a stock exchange
for the account of another member. For example, investment dealer A is
a small firm whose volume of business is not sufficient to maintain a
trader on the exchange. Instead, investment dealer A gives its orders
to investment dealer B, a larger organization which is a member of the
exchange, for execution. Investment dealer A pays a reduced percentage
of the normal commission.
A young company in the early stages of operations and growth.
Last Sale Price
For a Market On Close (MOC)-eligible security, the last sale price
equals the calculated closing price. If the MOC closing price
acceptance parameters are exceeded, it equals the last board lot sale
price of the security on the exchange in the regular trading session.
For any other listed security, the last sale price equals the last
board lot sale price of the security on the exchange, in the regular
Last Trading Day
The last day on which a futures or option contract may be traded.
The debts and obligations of a company or an individual. Current
liabilities are debts due and payable within one year. Long-term
liabilities are those payable after one year. Liabilities are found on
a company's balance sheet or an individual's net worth statement.
An order to buy or sell stock at a specified price. The order can be
executed only at the specified price or better. A limit order sets the
maximum price the client is willing to pay as a buyer, and the minimum
price they are willing to accept as a seller.
An order to close out an existing open futures or options contract. A
liquidating order involves the sale of a contract that has been
purchased or purchase of a contract that has been sold.
This refers to how easily securities can be bought or sold in the
market. A security is liquid when there are enough units outstanding
for large transactions to occur without a substantial change in price.
Liquidity is one of the most important characteristics of a good
market. Liquidity also refers to how easily investors can convert their
securities into cash and to a corporation's cash position, which is how
much the value of the corporation's current assets exceeds current
An issuer that has at least one class of securities listed on Toronto Stock Exchange or TSX Venture Exchange.
Shares of an issuer that are traded on a stock exchange. Issuers pay
fees to the exchange to be listed and must abide by the rules and
regulations set out by the exchange to maintain listing privileges.
The document that an issuer completes and submits to an exchange when
it applies to list its shares on the exchange. The issuer must disclose
its activities, plans, management and finances in the application.
A term that refers to ownership of securities. For example, if you are
long 100 shares of XYZ, this means that you own 100 shares of XYZ
The lowest price at which a board lot trade was executed during a period of time. See also: Board Lot.
A client account that uses credit from the investment dealer to buy a
security. A client needs to deposit a margin amount with the balance
advanced by the investment dealer against collateral such as
investments. The investment dealer can make a margin call, which means
the client must deposit more money or securities if the value of the
account falls below a certain level. If the client does not meet the
margin call, the dealer can sell the securities in the margin account
at a possible loss to cover the balance owed. The investment dealer
also charges the client interest on the money borrowed to buy the
The place where buyers and sellers meet to exchange goods and services.
It also represents the actual or potential demand for a product or
The number of issued and outstanding securities listed for trading for
an individual issue multiplied by the board lot trading price. Should a
trading price not be available, a bid price, a price on another market,
or if applicable, the price for an issue of the same issuer which the
first issue is convertible into, may be used. Total market
capitalization for a market is obtained by adding together all
individual issue market capitalizations (warrants and rights excluded).
Escrowed shares are excluded from TSX Venture market capitalization.
A trader employed by a securities firm who is required to maintain
reasonable liquidity in securities markets by making firm bids or
offers for one or more designated securities up to a specified minimum
guaranteed fill. Market makers for the stock of issuers listed on
Toronto Stock Exchange are referred to as Registered Traders.
Market On Close (MOC)
A TSX electronic call market facility, which establishes the closing
price for certain TSX-listed securities. MOC accepts confidential
market orders from before the open and throughout the trading session,
maintaining them in time priority. Twenty minutes before the close of
the trading session, MOC publicly broadcasts an imbalance of buy and
sell MOC market orders and asks for limit MOC orders to offset the
imbalance. Ten minutes before the close of the trading session, MOC
publicly broadcasts an Indicative Calculated Closing Price (ICCP) that
provides market participants with an indication of what the calculated
closing price would be assuming the regular trading session had ended
at that time (see Indicative Calculated Closing Price for more
details). At the close, MOC matches orders, from the MOC and continuous
market books, at a calculated closing price (which assures the most
matches closest to the last sale price), and allocates the fills
according to price and time priority.
An order to buy or sell stock immediately at the best current price.
A real-time data feed that puts the order book directly on the
customer's screen. This information product shows the committed,
tradable volume of the top 5 bids and asks for each Toronto Stock
Exchange or TSX Venture Exchange-listed stock.
A change in an issuer's affairs that could have a significant effect on
the market value of its securities, such as a change in the nature of
the business or control of the issuer. Under the principle of
continuous disclosure, a listed issuer must issue a news release and
report to the applicable self-regulatory organization as soon as a
material change occurs.
See Participating Organizations (POs) and Members
Minimum Fill Order
A special term order with a minimum fill condition will only begin to
trade if its first fill has the required minimum number of shares. For
example, an order to buy 5,000 shares with a minimum volume of 2,000
shares can only trade if 2,000 or more shares become available.
Minimum Guaranteed Fill (MGF) Orders
These orders are guaranteed a complete fill upon entry. A Registered
Trader will provide the stock should the book be below the required
limit. To be eligible for MGF, an order has to be a tradable client
order with a volume less than or equal to the MGF size, which varies
from stock to stock.
Minimum Price Fluctuation
The minimum price change or tick on a futures contract.
Mixed Lot or Broken Lot
An order with a volume that combines any number of board lots and an odd lot.
Part of the capital market established to buy and sell short-term
financial obligations. These include federal government treasury bills,
short-term Government of Canada bonds, commercial paper, bankers'
acceptances and guaranteed investment certificates. Longer-term
securities are also traded in the money market when their term shortens
to three years.
Multijurisdictional Disclosure System (MJDS)
A disclosure system that facilitates certain Canadian-U.S. cross-border
securities offerings, issuer bids and takeover bids. It is intended to
reduce costly duplication of disclosure requirements and other filings
when issuers from one country register securities offerings in the
other. Under the rules, eligible cross-border offerings are governed by
the disclosure requirements of the issuer's home country.
Must-Be-Filled (MBF) Order
Orders placed before the market opens to buy or sell shares of stocks
when their options expire. These orders are guaranteed a complete fill
at the opening price to offset expiring options. They must be ordered
between 4:15 p.m. and 5:00 p.m. on the Thursday before the third Friday
of each month.
A fund managed by an expert who invests in stocks, bonds, options,
money market instruments or other securities. Mutual fund units can be
purchased through brokers or, in some cases, directly from the mutual
A seller of an option contract who does not own a position in the underlying security.
The difference between the previous day's closing price and the last traded price.
The difference between a company's or individual's total assets and its
total liabilities. Also known as shareholders' equity for a company.
A stock or bond issue sold by a company for the first time. Proceeds
may be used to retire the company's outstanding securities, or be used
for a new plant, equipment or additional working capital. New debt
issues are also offered by governments.
New Issuer Listing
Occurs concurrently with the posting of the new issuer's securities for
trading. The preconditions for listing include the acceptance by the
Exchange that all listing requirements and conditions have been
satisfied. The effective listing date is the date when the listed
securities open for trading.
New Issuer Listing - Application
An issuer whose application for listing was based on the TSX listing
application or the TSX Venture Exchange listing application form. These
applications in themselves provide prospectus-level disclosure;
however, often the listing application is accompanied by an offering
document or a prospectus.
New Issuer Listing - Graduate
An issuer, previously listed on TSX Venture Exchange (including NEX),
that applied for and was approved for listing on TSX. The issuer's
security would be delisted from TSX Venture Exchange and listed on TSX
at the same time, permitting continuous listing of the securities on
New Issuer Listing - IPO (Initial Public Offering)
An IPO (initial public offering) is an issuer's first offering of its
securities made to the public in accordance with a prospectus. The
offering is often made in conjunction with an issuer's initial
application for listing on an exchange.
New Issuer Listing - Plan of Arrangement
An issuer listing as a result of a plan of arrangement. A plan of
arrangement is a form of corporate reorganization that must be approved
by a court and by the corporation's shareholders or others affected by
the proposed arrangement, all as prescribed by corporate legislation. A
plan of arrangement can take various forms, including:
An amalgamation of two or more corporations
A division of the business of the corporation
A transfer of all or substantially all of the property of the corporation to another corporation
An exchange of securities of the corporation held by security holders
of the corporation for other securities, money, or other property that
is not a takeover bid
A liquidation or dissolution of the corporation
A compromise between the corporation and its creditors or holders of its debt
Any combination of the foregoing.
New Issuer Listing - Spin-Off
A reorganization that usually results in a newly listed issuer
acquiring a business division or assets as its principal operating
asset from another issuer (the reorganized issuer), with security
holders of the reorganized issuer holding securities in both issuers,
following completion of the reorganization.
New Issuer Listing - Transfer
An issuer previously listed on TSX that applied for and was approved
for listing on TSX Venture Exchange. The issuer's security would be
delisted from TSX and listed on TSX Venture Exchange at the same time,
permitting continuous listing of the securities on contiguous exchanges.
A security issue that is newly added to the list of tradable security
issues of an exchange. It is accompanied with a new listing date.
A separate board of TSX Venture Exchange. NEX was launched by TSX
Group, effective August 18, 2003, to trade as an open, continuous
auction market, on the same TSX Venture trading engine, and to be
governed by identical trading rules. NEX provides a trading forum for
issuers that have fallen below TSX Venture's continuing listing
requirements. They are identified with an extension of "H" added to
their stock symbol.
An issue that is recorded on the transfer agent's electronic book rather than being held as a physical note.
An order from a Participating Organization or an order a firm is
executing on behalf of an institution, such as a mutual fund. An "N"
denotes a non-client order in the book.
A listed issuer that is subject to special reporting rules.
A special-term order when there is a clear understanding between the
buying and selling parties that they will settle the trade directly
with each other.
A special term order when one or more participants in the trade is not a Canadian resident.
North American Industry Classification System (NAICS)
A system for classifying business establishments. It was developed by
the Economic Classification Policy Committee (ECPC) on behalf of the
U.S. Office of Management and Budget (OMB), in cooperation with
Statistics Canada and Mexico's Instituto Nacional de Estadistica,
Geografia e Informatica (INEGI) to provide comparable statistics across
the three countries. Launched in 1997, it is the replacement for the
1987 Standard Industrial Classification (SIC) codes.
A number of shares that are less than a board lot, which is the regular
trading unit decided upon by the particular stock exchange. An odd lot
is also an amount that is less than the par value of one trading unit
on the over-the-counter market. For example, if a board lot is 100
shares, an odd lot would be 99 or fewer shares.
To liquidate or close out an open futures or option contract.
A market that has only buy orders or only sell orders booked for a particular security.
On-Stop (O/S) Order
A special-term order placed with the intention of trading at a later
date when the price of the stock reaches the specified stop price. An
on-stop order becomes a limit order once a trade at the trigger price
Ontario Securities Commission
The government agency that administers the Securities Act (Ontario) and
the Commodity Futures Act (Ontario) and regulates securities and listed
futures contract transactions in Ontario.
The net open positions of a futures or option contract.
An order that remains in the system for more than a day. See Good-Till-Cancelled or Good-Till-Date.
Open-End Investment Fund
An investment fund that continuously offers its securities to investors
and stands ready to redeem its securities at all times. Transactions in
shares/units of mutual funds are based on their net asset value (NAV),
determined at the close of each business day. Examples of an open-end
fund are traditional mutual funds and exchange-traded funds (ETFs).
The market opens at 9:30 a.m. ET each business day.
The right, but not the obligation, to buy or sell certain securities at
a specified price within a specified time. A put option gives the
holder the right to sell the security, and a call option gives the
holder the right to buy the security.
All options of the same type, either calls or puts, that have the same underlying security.
A set pattern of months when a class of options expires.
The buyer of an option contract who has the right to exercise the option during its lifetime.
An individual option contract for a given security.
A call or put contract.
The seller of an option contract who may be required to deliver (call
option) or to purchase (put option) the underlying interest covered by
the option, before the contract expires.
An eight or nine-digit number assigned to every order entered into the system.
Original Listing/Initial Listing
A listing is designated as an original listing on TSX or initial
listing on TSX Venture Exchange, if it satisfies the following three
It meets listing requirements.
It pays applicable listing fees.
It is described in the exchange bulletin as an original listing by TSX or a new listing by TSX Venture Exchange.
Typical examples of original/initial listings include:
An initial public offering (IPO)
Transfer from another exchange
A new entity created by a spin-off (such as a division, from an existing issuer, becoming its own publicly traded entity)
OTC Foreign Trading
OTC (over-the-counter) foreign trading refers to UMIR Rule 6.4 (e),
which permits a trade to be executed off the Exchange, if one or both
Participating Organization/Member client accounts are outside of
Canada, provided such trades are reported within a specific time frame
to the Exchange for public dissemination of the transaction.
Over-The-Counter (OTC) Market
The market maintained by securities dealers for issues not listed on a
stock exchange. Almost all bonds and debentures, as well as some
stocks, are traded over-the-counter in Canada. An OTC market is also
known as an unlisted market.
A security's nominal face value.
An order receives a partial fill when it trades only part of its total committed volume.
Participating Organizations (POs) and Members of TSX
Firms that are entitled to trade through the facilities of TSX.
However, only POs are also involved in all aspects of the securities
business, including underwriting new issues and other financings, and
assisting companies in the initial public offering (IPO) process.
Participating Organizations (POs) and Members of TSX Venture Exchange
Firms entitled to trade through the facilities of TSX Venture Exchange.
However, only POs of TSX and Members of TSX Venture Exchange are
permitted to act as sponsors for listed issuers or issuers proposing to
be listed on TSX Venture Exchange.
Low-priced speculative issues of stock selling at less than $1.00 a share.
Holdings of securities by an individual or institution. A portfolio may
include various types of securities representing different companies
and industry sectors.
The maximum number of futures or options contracts any individual or group of people acting together may hold at one time.
Power, Pipeline & Utility Trusts
A type of income trust. They are investment vehicles that have
underlying businesses that are utilities, power generation companies,
or pipeline companies.
A class of share capital that entitles the owner to a fixed dividend
ahead of the issuer's common shares and to a stated dollar value per
share in the event of liquidation. It usually does not have voting
rights, unless a stated number of dividends have been omitted.
An option contract's price.
A session from 7:00 a.m. to 9:30 a.m. (ET) when orders can be entered
into the Toronto Stock Exchange's systems. Tradable orders will be
queued until after 9:30 a.m. when the market opens.
Price-Earnings (P/E) Ratio
A common stock's last closing market price per share divided by the
latest reported 12-month earnings per share. This ratio shows you how
many times the actual or anticipated annual earnings a stock is trading
A trade when a Participating Organization is either buying from, or selling to its client.
If there are several orders competing for a stock at the same price, a
priority determines when one of these orders will be filled before any
other at this price. Priority is based on the time at which the order
is received into the system.
The private offering of a security to a small group of buyers. Resale
of the security is limited. See Best Efforts and Bought Deal
Private Placement Financing
The dollar value of privately placed securities issued in accordance
with a TSX or TSX Venture Exchange approved transaction. The price is
determined in accordance with the policies of the TSX Company Manual or
TSX Venture Corporate Finance Manual. The number of securities is the
actual number issued. The composition of the financing could take the
form of units comprised of multiple securities.
Professional and Equivalent Real-Time Data Subscriptions
The total number of professional accesses to real-time products of TSX
and TSX Venture Exchange, as well as non-professional accesses that are
priced the same or at a minimal discount to the professional access
rate for the same product.
What is left over for the owners of a business after all expenses have
been deducted from revenues. Gross profit is the profit before
corporate income taxes. Net profit is the final profit of the business
after taxes have been paid.
A legal document describing securities being offered for sale to the
public. It must be prepared in accordance with provincial securities
commission regulations. Prospectus documents usually disclose pertinent
information concerning the company's operations, securities, management
and purpose of the offering.
A push-out occurs during a stock split when new shares are forwarded to
the registered holders of old share certificates, without the holders
having to surrender the old shares. Both the old and new shares have
A put option is a contract that gives the holder the right to sell a
specified number of shares at a stated price within a fixed time
period. Put options are purchased by those who think a stock may
decline in price.
Quoted Market Value (QMV)
See Market Capitalization.
A brisk rise in the general price level of the market or price of a stock.
Real Estate Investment Trust (REIT)
Typically, a closed-end investment fund that trades on an exchange and
uses the pooled capital of many investors to purchase and manage income
properties. Equity REITs primarily own commercial real estate, such as
shopping centres, apartments, and industrial buildings. By taking
advantage of the trust structure, REITs offer tax advantages (beyond
traditional common equity investments) to investors and provide a
liquid way to invest in real estate, which otherwise is an illiquid
See Dividend/Distribution Record Date.
A security that carries a condition giving the issuer a right to call
in and retire that security at a certain price and for a certain period
A trader employed by a securities firm who is required to maintain
reasonable liquidity in securities markets by making firm bids or
offers for one or more designated securities up to a specified minimum
Relative Position Report
A TSX report that ranks each Participating Organization's/Member's
trading activity relative to the total market and the other
POs/Members. It is produced monthly for each TSX Group PO/Member.
Responsible Registered Trader
The Registered Trader assigned by the Selection Committee to act as
market maker in a security. Their duties include providing a minimum
guaranteed fill, maintaining minimum spread and ensuring orderly
A security that features an option for the holder to require the issuer to redeem it, subject to specified terms and conditions.
The total amount of funds generated by a business.
Reverse Takeover (RTO)/Backdoor Listing
A transaction or series of transactions that includes a securities
issuance made by a listed issuer to parties vending securities or other
assets into the listed issuer (the new security's holders), such that
after completion of the transaction(s), the new security's holders will
own more than 50% of the outstanding voting securities of the listed
issuer, with an accompanying change of control of the listed issuer. A
reverse takeover (RTO)/backdoor listing can be completed through
various transactions, including a business or asset acquisition, an
amalgamation, a plan of arrangement, or other form of reorganization.
The listing of securities of an issuer formed in accordance with an
RTO/backdoor listing is treated as a new listing.
A temporary privilege that lets shareholders purchase additional shares
directly from the issuer at a stated price. The price is usually less
than the market price of the common shares on the day the rights are
issued. The rights are only valid within a given time period.
The future chance or probability of loss.
S&P/TSX 60 Capped Index
Includes all of the constituents of the S&P/TSX 60 Index. The
relative weight by market capitalization of any single index
constituent is capped at 10%.
S&P/TSX 60 Index
An index of large, liquid, Canadian issuers listed on Toronto Stock
Exchange. It is market capitalization weighted, with weights adjusted
for available share float, and includes securities of 60 issuers
balanced across ten economic sectors. Inclusion in the S&P/TSX
Composite is a prerequisite to inclusion in the S&P/TSX 60 Index.
S&P/TSX Capped Composite Index
Includes all of the constituents of the S&P/TSX Composite Index.
The relative weight by market capitalization of any single index
constituent is capped at 10%.
S&P/TSX Composite Index
Comprises the majority of market capitalization for Canadian-based,
Toronto Stock Exchange listed companies. It is the leading benchmark
used to measure the price performance of the broad, Canadian, senior
equity market. It was formerly known as the TSE 300 Composite Index.
S&P/TSX MidCap Index
An index of mid-sized Canadian issuers that have been included in the
S&P/TSX Composite Index but are not members of the S&P/TSX 60
Index. It is market capitalization weighted, with weights adjusted for
available share float, and includes securities of 60 issuers balanced
across ten economic sectors.
S&P/TSX SmallCap Index
An index of smaller Canadian issuers that are included in the
S&P/TSX Composite Index, but have not been added to the S&P/TSX
60 Index or the S&P/TSX MidCap Index. When a new issuer qualifies
to be included in the S&P/TSX Composite, it is automatically added
to the S&P/TSX SmallCap Index. This index does not have a fixed
number of constituents.
S&P/TSX Venture Composite Index
Launched December 10, 2001, it is the leading benchmark used to measure
the price performance of the Canadian public venture capital equity
The traditional term for membership on a stock exchange. An investment
dealer or brokerage buys a seat on the exchange and one employee is
designated as the seat holder. As Toronto Stock Exchange is now
demutualized, there are no longer seats on the exchange.
Secondary Offering Financing
The dollar value of secondary offering securities issued in accordance
with a TSX or TSX Venture Exchange approved transaction. It is the
stated prospectus price multiplied by the "number of securities issued
under the offering plus the over allotment".
Transferable certificates of ownership of investment products such as notes, bonds, stocks, futures contracts and options.
Securities and Exchange Commission (SEC)
The federal regulatory body for interstate securities transactions in the United States.
Each province has a securities commission or administrator that
oversees the provincial securities act. This act is a set of laws and
regulations that set down the rules under which securities may be
issued or traded in that province.
Securities Industry Association (SIA)
The trade association representing more than 600 securities firms
throughout Canada and the United States. Members include banks,
brokers, dealers and mutual fund companies.
The System for Electronic Document Analysis and Retrieval. SEDAR is an
electronic filing system that allows listed companies to file
prospectuses and continuous disclosure documents. The Canadian
Securities Administrators, Canadian Depository for Securities Limited
and the filing community developed it, with co-operation from legal
firms and stock exchanges.
*SEDAR is a trademark of the Canadian Securities Administrators.
The shares or stock sold by a company to provide start-up capital before carrying out an initial public offering (IPO).
An organization recognized by securities administrators as having
powers to establish and enforce industry regulations to protect
investors and to maintain fair, equitable and ethical practices in the
securities industry. Examples include Toronto Stock Exchange and the
Investment Dealers Association.
The process that follows a transaction when the seller delivers the
security to the buyer and the buyer pays the seller for the security.
The date when a securities buyer must pay for a purchase or a seller
must deliver the securities sold. Settlement must be made on or before
the third business day following the transaction date in most cases.
The price used to determine the daily net gains or losses in the value of an open futures or options contract.
A paper certificate that represents the number of shares an investor owns.
The selling of a security that the seller does not own (naked or
uncovered short) or has borrowed (covered short). Short selling is a
trading strategy. Short sellers assume the risk that they will be able
to buy the stock at a lower price, cover the outstanding short, and
realize a profit from the difference.
Orders which must trade under special conditions. For example, a cash
order will be settled sooner than the usual three-day settlement period.
Special Trading Session
A session during which trading in a listed security is limited to the execution of transactions at a single price.
Someone prepared to accept calculated risks in the marketplace for attractive potential returns.
Capital and preferred shares issued by a split-share corporation. A
split-share corporation holds common shares of one or more companies.
The corporation then issues two classes of shares - capital shares and
preferred shares. The objective is to generate fixed, cumulative,
preferential dividends for the holders of preferred shares and to
enable the holders of the capital shares to participate in any capital
appreciation (or depreciation) in the underlying common shares.
Sponsor, TSX Venture Issuers
A Participating Organization of TSX or a Member of TSX Venture Exchange
that is qualified to carry out a due-diligence review of an issuer and
prepare a sponsor report, which provides an opinion on the suitability
of that issuer for listing or continued listing on TSX Venture Exchange.
The difference between the bid and the ask prices of a stock.
Committees formed for the purpose of assisting in decision-making on an ongoing basis.
A dividend/distribution paid in securities of the same issue or a
different issue of the same issuer or another issuer. A stock
dividend/distribution can be used as a means to list a new issuer. The
issuer or its representative provides the amount, payable date, and
record date. The exchange that the issue is listed on sets the
ex-dividend/distribution (ex-d) date for entitlement.
Stock Index Futures
Futures contracts which have a stock index as the underlying interest.
Stock List Deletion
A security issue that is removed or delisted from the list of tradable
security issues of an exchange. It is usually accompanied with a reason
for deletion and the deletion date.
Stock Price Index
A statistical measure of the state of the stock market, based on the
performance of certain stocks. Examples include the S&P/TSX
Composite Index and the S&P/TSX Venture Composite Index.
Stock Price Index Value (SPIV)
The number that is usually quoted as the value of an index. SPIV is
based on the aggregate, float quoted market value of the index
constituents and is calculated for all S&P/TSX indices. SPIV is
calculated at the end of the trading session for all S&P/TSX
indices and throughout the trading session for certain S&P/TSX
A corporate action that increases the number of securities issued and
outstanding, without the issuer receiving any consideration for the
issue. Approval by security holders is required in many jurisdictions.
Each security holder gets more securities, in direct proportion to the
amount of securities they own on the record date; thus, their
percentage ownership of the issuer does not change. For example, a
two-for-one stock split involves the issuance of two new securities for
every old security.
A one-character to three-character, alphabetic root symbol, which
represents an issuer listed on Toronto Stock Exchange or TSX Venture
Stock Symbol Extension
The character or characters that may follow the stock symbol to
uniquely identify a listed security. It can be a single alphabetic
character, two alphabetic characters, or a combination of two plus one
characters with a maximum of eight characters for the stock symbol,
extension and separator dots in between. For example, BMO.PR.U.
Currently, they include:
A-B - class of shares
DB - debenture
E - equity dividend
H - NEX market
IR - installment receipts
NO, NS, NT - notes
P - Capital Pool Company
PR - preferred
R - subscription receipts
RT - rights
S - special U.S. terms
U, V - U.S. funds
UN - units
W - when issued
WT - warrants
These are certificates registered in the name of a securities firm
rather than the owner of the security. This makes the certificate
easily transferable to a new owner.
The price the owner of an option can purchase or sell the underlying
security. The purchases and sales are also known as calls and puts.
Closed-end or open-end investment funds, which provide innovative and
flexible investment products designed to respond to modern investor
needs, such as yield enhancement, risk reduction, or asset
diversification. Structured products allow investors to buy a single
unit/share of a fund that represents an interest in the investment
portfolio. Based on the investment strategy, the portfolio can purchase
a basket of securities, track an index, or hold a specific type of
security or portion of a security.
The subcategories under the structured products include: investment
funds, ETFs, capital trusts, split share corporations, and mutual fund
A broad category of transactions that involves one security on the stock list being replaced by another security or securities.
A type of listing transaction, made after an issuer's original listing,
that involves the listing and posting for trading of a new issue of
securities. Typically, this involves the listing of preferred shares,
rights, warrants, or debentures. Supplemental also covers the
additional listing of when-issued shares through a secondary offering
of an issue that is already listed.
Supplemental Listing Financing
The dollar value of supplemental securities issued in accordance with a
TSX or TSX Venture Exchange approved transaction. It is the stated
prospectus price multiplied by the "number of securities issued under
the supplemental listing plus the over allotment".
The status of a listed security of an issuer whose trading privileges
have been revoked by the Exchange. All securities of the issuer remain
suspended until trading privileges have been reinstated, or the issuer
An issuer whose trading privileges for a listed security or securities
have been revoked by Toronto Stock Exchange or TSX Venture Exchange.
The listed issuer remains suspended until trading privileges have been
reinstated, or the listed issuer is delisted.
A change in a listed issuer's stock symbol, which may be required by
the Exchange in the context of an issuer's reorganization or may be
made at the request of the issuer. A requested symbol is available for
use if it is appropriate for the type of security and the issuer's
A market that occurs when there are comparatively few bids to buy or
offers to sell, or both. The phrase may apply to a single security or
to the entire stock market. In a thin market, price fluctuations
between transactions are usually larger than when the market is liquid.
A thin market in a particular stock may reflect lack of interest in
that issue, or a limited supply of the stock.
Slang used for minimum spread. Depending on the stock price it could be a half-cent, one cent or five cents.
Each time a stock is bought and sold, it is displayed on an electronic
ticker tape. It is a record of current trading activity on an exchange.
The administrative fee charged for each trade.
The TSX Venture Exchange market has two tiers where securities are
listed and traded. Tier 1 is for advanced companies with a certain
level of net tangible assets and earnings. Tier 2 is for more junior
Time refers to the time period you would like to see charted from the
drop-down menu box labelled "Time". These options give you a choice of
intraday pricing data ("Daily", "1-Minute", "5-Minute", "15-Minute" and
"Hourly") options. The additional options refer to end-of-day pricing
data. This term refers to a TSX Group Historical Performance charting
The difference between an option's premium and its intrinsic value.
Timely Disclosure Policy
This policy requires all listed companies to publicly disclose material information in a timely manner.
Toronto Level 1 (TL1) is a real-time service for listed senior equities
that provides trades, quotes, corporate actions and index information
Toronto Level 2 (TL2) is a real-time service for senior equities that
shows all of the committed orders and trades for each TSX listed
security in real time.
Toronto Stock Exchange
Canada's national stock exchange, which serves the senior equity market.
Total Number of Shares
The total number of issued and outstanding shares for the security.
Total Return Index Value (TRIV)
Similar to the stock price index value (SPIV), except that the TRIV is
based on the aggregate, float quoted market value of the index
constituents (SPIV) plus their paid dividends/distributions. TRIV is
calculated only at the end of the trading session for all S&P/TSX
A trading halt is imposed by the exchange, usually due to the dissemination of news that might impact a stock's price.
The status of a listed security of an issuer whose trading privileges are active on the Exchange.
An issuer that has at least one class of securities whose trading
privileges are active on Toronto Stock Exchange or TSX Venture Exchange.
The unique, 3-digit number assigned to each Participating Organization and Member to identify it for market transparency.
The period during which the Exchange is open for trading.
See Stock Symbol.
The total dollar value of shares traded during a trading session.
Trailing Twelve Months Earnings Per Share (TTM EPS)
Trailing, twelve-months earnings per share (TTM EPS), reported by TSX
for listed issuers, is an annualized EPS calculation, based on EPS as
presented by the issuer, from their latest annual financial statements
and the latest subsequent interim financial statements, if any. It
includes special items, such as extraordinary items or discontinued
operations. It indicates the issuer's annualized earnings for the
latest financial reporting period. It is also used to calculate the
issuer's price/earnings (P/E) ratio that is reported on tmxmoney.com.
The date when the purchase or sale of a security takes place.
As reported in exchange trading statistics, represents the total number of trades for a specified period.
A trust company appointed by a listed company to keep a record of the
names, addresses and number of shares held by its shareholders.
Frequently, the transfer agent also distributes dividend cheques to the
A security that can be transferred from one party holder to another
without restrictions, provided that all proper documentation is
TSX Industrial Category
Includes all issuers that are not classified as mining or oil and gas.
TSX Industrial, Mines and Oil & Gas Categories (IMO)
The broad classification of issuers into an industrial, mining, or oil
and gas category. The classification is done at the review of the
original listing application or at a later review of the listed issuer.
The classification determines which listing standard is to be applied
to the issuer.
TSX Marker for U.S. or Non-U.S. Foreign Incorporated Issuer
A marker used by TSX to classify trading (including interlisted shares)
and market capitalization by domestic, U.S., and non-U.S. foreign
issuers. The data source is the original listing bulletin, which
includes a notation on the laws or jurisdiction the issuer was
incorporated under. Non-U.S., foreign issuer data is not broken down by
country of incorporation.
TSX Mines Category
Mining issuers that have proven or probable reserves and are either in production or have made a production decision.
Mineral exploration and development issuers that have a planned work program of exploration or development.
TSX Oil & Gas Category
Includes oil and gas companies that have proven and developed reserves and ongoing operations.
TSX Venture Exchange
Canada's national stock exchange, which serves the public, venture equity market.
The specific security, commodity, index or financial instrument that an option or futures contract is traded.
The purchase for resale of a new issue of securities by an investment
dealer or group of dealers who are also known as underwriters. The
formal agreements for these transactions are called underwriting
A security not listed on a stock exchange, but traded on the over-the-counter market.
A stock is said to be on an uptick when the last trade occurred at a higher price than the one before it.
Money raised by companies to finance new ventures.
A classification of TSX Venture Exchange-listed companies that are in
the early stages of development and meet the minimum asset, market
value and shareholder distribution requirements for Tier 2 listing.
A statistical measure of changes in price over a period of time.
See Debt Volume and Equity Volume.
Volume-weighted, average trading price of the listed securities,
calculated by dividing the total value by the total volume of
securities traded for the relevant period. Where appropriate, TSX may
exclude internal crosses and certain other special terms trades from
the calculation. This definition is generally used by listed issuers to
price their shares.
A transaction for the purpose of executing a trade at a volume-weighted
average price of a security traded for a continuous period, on or
during a trading day on the Exchange. Marked as a specialty-priced
cross, a VWAP cross may be executed outside the quote, will not set the
last sale price, and is not subject to interference by other orders on
the book. VWAP crosses may be executed in the post open and special
A security giving the holder the right to purchase securities at a
stipulated price within a specified time limit. Exercise of the warrant
is solely at the discretion of the holder. Warrants are not exercisable
after the expiry date. A warrant is often issued in conjunction with
another security as part of a financing. A warrant may be traded as a
listed security or it may be held privately.
Occurs when the security has been listed and posted for trading, but
the certificate representing the security itself is not yet issued and
available for settlement. The exchange bulletin issued on listing of
the security indicates if the trading will be done on a when-issued
basis. In this case, the issuance of the security is guaranteed and the
delay in issuance is often due to factors relating to the printing and
distribution of the security. The period for when-issued trading is
usually less than one week.
World Federation of Exchanges (WFE)
The World Federation of Exchanges (WFE) is a global trade association
for the exchange industry. The membership is comprised of more than 50
regulated exchanges from all regions of the world. Together, these
exchanges account for over 95% of world stock market capitalization,
and most of its exchange-traded futures, options, listed investment
funds, and bonds. TSX is a member of WFE, and is on the Federation's
Board of Directors.
The seller of an option. The writer has an obligation associated with
the contract to either purchase or sell a specified number of shares at
the strike price on or before expiry.
Index Level 1 is a feed service that provides index and constituent
data for the equity S&P/TSX indices. Current day constituent data
is broadcast before market open. Complete index and constituent data is
delivered at end of day.
This is the measure of the return on an investment and is shown as a
percentage. A stock yield is calculated by dividing the annual dividend
by the stock's current market price. For example, a stock selling at
$50 and with an annual dividend of $5 per share yields 10%. A bond
yield is a more complicated calculation, involving annual interest
payments, plus amortizing the difference between its current market
price and par value over the life of the bond.
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