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A place where you can buy or sell securities. There are primary and secondary markets. |
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A market in which newly issued shares as opposed to previously issued securities are traded. There are two types of offerings in this market: 1) the IPO, and 2) seasoned new issues. |
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Initial Public Offering (IPO) |
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The first time a company's shares are sold publicly. |
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A stock offering by a company that already has common shares traded in the marketplace. |
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The intermediary between the firm issuing securities and the buying public. |
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An investment dealer who purchases and subsequently resells a new security issue. |
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An advertisement that provides an listing of the underwriting syndicate involved in the new offering and basic info about the offering. |
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a legal doc that describes a securities issue and that is made available to potential investors. |
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the markets in which previously issued securities are traded. |
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Over-the-counter Market (OTC) |
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Definition
A link-up of dealers with no listing or membership requirements. The dealers are allowed to post bid and ask prices via the internet. Listings are often made up of companies that are too new or small to be listed on a major exchange. |
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The price at which an individual is willing to purchase a security. |
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The price at which an individual is willing to sell a security. |
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American Depository Receipt (ADR) |
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Definition
A marketable document that certifies a financial institution holds shares of a foreign firm that backs the receipt. As a result, it trades just like a normal share of stock. |
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Global Depository Receipt (GDR) |
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Definition
A marketable doc that certifies that a financial institution holds shares of a foreign firm that backs the receipt. Trading takes place outside the country of origin and the USA. It trades just like a normal security. |
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A group/lot of 100 shares of common stock. |
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An order involving between 1 and 99 shares of common stock. |
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A TRADING ORDER THAT EXPIRES AT THE END OF THE TRADING DAY DURING WHICH IT WAS MADE. |
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Open or Good-till-cancelled (GTC) order |
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Definition
A trading order that remains effective until filled or cancelled. |
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An account that gives your dealer the power to make trades for you. Be careful with these accounts! |
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An order to buy or sell a set number of shares immediately at the best price available. |
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An order that specifies a securities trade is to be made only at a certain price or better. |
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An order to sell a security if the price drops below a specified level or an order to buy if the price climbs above a specified level. |
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Borrowing shares from your dealer and selling them with an obligation to replace the shares later. |
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The percentage that an investor must have on deposit with a dealer when selling short. |
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Definition
Comprehensive financial services packages offered by chartered banks and their investment dealer subsidiaries that can include a chequing account, credit/debit cards, money market accounts, loans, automatic payment of fixed debt, investment dealer services, and a system for direct payment. |
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Full-service Investment Dealer |
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Definition
An investment dealer who gives advice and is paid by commission, based on the sales volume generated. |
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Discount Investment Dealer |
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A 'no-frills' dealer who executes trades without giving any advice and thus charges a much lower commission. |
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A dealer that allows you to execute your trades electronically over the internet. |
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Securities trading accounts in which traders pay in full for their security purchases. |
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Securities trading accounts in which the traders borrow a portion of the purchase price from their dealer. |
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A limit set on the percentage of the purchase price of a security that must initially be paid for by the investor. |
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The minimum percentage margin of collateral that you must maintain. |
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A requirement that you replenish your margin account by adding cash or securities to bring it back to the minimum level. |
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Joint Tenancy with the Right of Survivorship |
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Definition
A type of joint ownership in which the surviving owner receives full ownership of the assets in the account when the joint owner dies. |
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Tenancy-in-common Account |
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Definition
A type of joint ownership in which the deceased's portion of the account goes to the heirs of the deceased rather than to the surviving holder. |
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Making trades via the internet. |
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Definition
Individuals who trade, generally over the internet, with a very short time horizon, generally less than 1 day. |
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