A more extensive glossary can be found at the Investor Education Fund website at

http://www.investored.ca/en/glossary/glossary_list.asp

Auction Market: A market where buyers and sellers are brought together to trade with each other and prices are set by supply and demand. Toronto Stock Exchange and TSX Venture Exchange are examples of auction markets.

Arbitrage: The simultaneous purchase of a security on one exchange and sale of the same security or an equivalent of that security on the same or another exchange which can result in a profit.

Assets: Everything a company or person owns or is owed, such as money, securities, equipment and buildings. Assets can be intangible (goodwill) or tangible (physical).

Ask Price: The lowest price anyone will accept to sell a stock.

At-the-Market Order: An order to buy or sell stock immediately at the best price available.

Bear Market: A market in which stock prices are falling.

Bid Price: The highest price anyone will pay to buy a stock.

Blue Chip Shares: A security issued by a well-established, financially-sound, and stable company that has demonstrated its ability to pay dividends.

Board Lot: A regular trading unit. The board lot size of a stock on Toronto Stock Exchange and TSX Venture Exchange could be 1000, 500, or 100 shares, depending on the price of the stock. For stocks trading at over $1.00 in value, the board lot is 100 shares. Generally, an investor buying or selling a board lot pays less commission than an investor buying or selling an odd lot - an amount not equal to a board lot.

Bond: A loan of funds to an organization seeking capital. The investor becomes a creditor to the issuer, and has a higher claim to assets than a shareholder.

Broker/Dealer: An individual or firm in the business of buying and selling securities on behalf of clients, sometimes operating as a broker and a dealer, depending on the transaction.

Bull Market: A market in which stock prices are rising.

Call: An option that gives the holder the right, but not the obligation, to buy a specified amount of a certain stock at a specified price within a specified time.

Capital: Money, assets, securities, and inventory.

Capital Market: A market that brings together users and providers of capital.

Commission: The fee charged by investment brokers for trades done on behalf of clients.

Common Shares: Securities that represent part ownership in a company and generally carry voting privileges.

Day Order: An order that is valid only for the day it is entered.

Dealer Market: A securities market in which transactions are between principals acting as dealers for their own accounts rather than between brokers acting as dealers for buyers and sellers.

Debenture: An unsecured debt security representing a claim to the assets of the borrowing institution, backed only by the credit worthiness of that institution.

Derivative: A financial instrument whose value is a function of the price of another asset.

Dividend: A payment, either in the form of cash or stock, made to the owner of a stock by the issuer of the stock.

Equities: Common and preferred shares, which represent a share in the ownership of a company.

Exchange Traded Funds (ETFs): Investment products that allow an investor to buy an entire basket of stocks through a single security which tracks and matches the returns of a stock market index.

Expected Return: The total profit expected from an investment. Returns may be in the form of income, interest, dividends, or as capital gains.

Future: A financial contract, or agreement, to buy or sell financial instruments or physical commodities for future delivery.

Going Public: The process of selling shares to the public. When a company "goes public," it is the first time the general public has the ability to buy shares. Otherwise known as an initial public offering (IPO).

Growth Shares: Shares in a company whose earnings are expected to grow at an above average rate relative to the market. A growth stock usually has a high P/E ratio and does not have a track record of paying a dividend.

Hedge: A trade designed to reduce risk arising from another position held by the investor.

High Risk Security: Shares issued by newly formed companies and/or those without a proven financial track record.

Index: A statistical compilation that represents the current market value of a group of securities.

Initial Public Offering (IPO): A company's first issue of shares to the general public.

Insider: A director or senior officer of a company, its parent and subsidiaries, and anyone owning more than 10 percent of the voting shares in a company.

Insider Trading: Legal insider trading occurs when stock transactions are made by insiders of a company and reported to the appropriate securities commissions. Illegal insider trading occurs when trades are made by anyone with knowledge of material information that is not public knowledge.

Leverage: Seeking magnified returns on an investment by using borrowed funds or margin accounts.

Limit Order: An order to buy or sell stock at a specified price.

Market Capitalization: A measure of a company's size based on the total dollar value of all outstanding shares. It is calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap.

Market Maker: A registered trader who provides continuous bid and ask prices in order to maintain liquidity for a particular equity or derivative instrument.

Material Change: A change in a company's affairs that is expected to have a significant effect on the market value of its securities.

Minimum Guaranteed Fill (MGF): Registered traders guarantee a complete fill of orders placed by investors in most stocks (up to a certain amount of shares) at the current market price.

Money Market: The securities market dealing in short-term debt and monetary instruments. Money market instruments are forms of debt that mature in less than one year and are very liquid.

Option: A financial contract sold by one party to another that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price during a certain period of time or on a specific date.

Over-the-Counter (OTC): Shares not listed on an exchange may trade on the OTC, or Over-the-Counter market. OTC trades are mainly conducted over the phone directly between two parties.

Participating Organizations: Investment dealers (companies) who are granted access to trade on a particular stock exchange.

Penny Shares: A stock that sells for less than $1 a share, rarely offers dividends, and is usually issued by newly formed companies. Penny shares present a much higher degree of risk than growth or blue chip stocks.

Preferred Shares: Shares that may carry dividends that must be paid before any dividends are paid to common shareholders. These generally do not come with voting rights.

Primary Market: The market in which investors have the first opportunity to buy a newly issued security.

Put: An option which gives the holder the right, but not the obligation, to sell a fixed amount of a certain stock at a specified price within a specified time.

Registered Representative (Trader): An individual employed by an investment dealer who provides investment advice to clients and executes trades on their behalf.

Right: A privilege granted to a company's existing common shareholders to acquire additional common shares directly from the company at a stated price.

Risk: The chance that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment.

Risk Tolerance: An investor's ability to accept the possibility of losing capital.

Secondary Market: The market in which the buying and selling is done between retail and institutional investors. Shares on this market have by definition already gone through the Primary Market for Initial Public Offerings (IPO).

Self-Regulatory Organization (SRO): An organization that mandates the enforcement of fair, ethical and efficient practices in the securities industry.

Short Selling: The sale of a security which the seller does not own.

Small Cap: Companies that have smaller market capitalization, typically are less established, often faster growing and usually more volatile.

Stop Limit Order: An order placed with a broker to buy or sell at a specified price (or better) after a given stop price has been reached or passed.

Stop Loss Order: An order placed with a broker to buy or sell when a certain price is reached. It is designed to limit an investor's loss (or lock in profit) on a security position. This is sometimes called a stop market order.

Strike Price: Also known as the exercise price. It is the price at which the underlying asset may be purchased (for a call option) or sold (for a put option).

Ticker: An electronic record of trading activity.

Trust Unit: Trust units represent interests in the net assets and net income of trust companies. These trusts are generally set up to invest in assets such as real property (real estate investment trusts), royalties from oil and gas production (royalty trusts) or the income generated by one or more businesses (income trusts). Many are designed to offer tax advantages to investors.

Warrant: A privilege giving the holder the right to purchase securities at a stipulated price within a specified time limit.

Writing an Option: Selling an option.

Yield: The return provided by an instrument over a certain period.