Debts the company must pay off within the year; that is, they are a current liability. Typically, these debts are to the company's suppliers. The accounts payable amount is subtracted from the sales or revenue amount on a balance sheet when net income and net worth are calculated.

Money owed to the company by its customers; it is called a current asset because the company expects the money to be paid to it within the year. Investors often look at this number to see whether accounts receivable is an unusually large number in comparison to the company's sales. If it is, it may mean that the company is low on cash.

Interest that has been earned but not yet received. It is normally applicable to bonds or debentures.

Taxes that the company owes and hasn't paid yet. They are listed on a company's balance sheet.

A measure of a corporation's liquidity, calculated by adding cash, cash equivalents, and accounts and notes receivable, and dividing the result by total current liabilities. It is a more stringent test of liquidity than current ratio.

(Usually) the cost of your property plus any expenses you incurred to acquire it. These expenses may include commissions and legal fees. The cost of a capital property is its actual or deemed cost depending on the type of property and how you acquired it. Advisors: Individuals, or a group of individuals, who have experience and expertise greater than your own, and who help you to make financial decisions. Examples: a lawyer, chartered accountant, banker, a stock broker, or a financial planner.

A company with less than 50 percent of its shares owned by another corporation, or one whose stock, with that of another corporation, is owned by the same controlling interests.

The final cost of an investment to an investor in a particular tax bracket, after calculating the effect of income tax.

A special tax credit available to Canadians aged 65 and over. This credit, which is equal to 17 per cent of the "age amount" (currently $3,482), translates into a maximum federal tax reduction of about $610 a year. In most provinces, the credit also reduces provincial taxes, resulting in a maximum combined federal-provincial tax reduction of about $950. The credit is transferable to a spouse, so a taxable senior who has a qualifying spouse with little or no income may claim a second age credit. The are credit is subject to an income test that targets the assistance to seniors with low or modest incomes. For 1995, this income test reduces the credit for seniors with net incomes above $25,921 such that the credit is fully phased out when an individual's net income reaches $49,134.

A method of portfolio allocation and management aimed at achieving maximum return. Aggressive investors place a high percentage of their investable assets in equity securities and a far lower percentage in safer debt securities and cash equivalents, and pursue aggressive policies including margin trading, arbitrage and options trading.

A private, not-for-profit corporation, located in New York City, that handles approximately one-fifth of all securities trades within the United States.

The number of years required to repay a mortgage or loan. This period assumes the payment schedule as set out in the original mortgage or loan contract.

Annual Economic Output or Gross Domestic Product (GDP):

The total value of all goods and services produced within Canada during a given year. It is also a measure of the income generated by production within Canada. Also referred to as annual economic output or just output. Canada's GDP in 1998 was $888.4 billion. To avoid counting the same output more than once, GDP includes only final goods and services -- not those which are used to make another product. For example, GDP would not include the wheat that is used to make bread, but would include the bread itself.

A financial report sent yearly to a publicly held firm's shareholders. This report must be audited by independent auditors.

A percentage rate of change for a period of less than one year, calculated to show what the change would be if it continued for a full year. For example, if economic growth in the first quarter (three months) of a year were one percent, the annualized rate would be about four per cent. (It would slightly exceed four per cent because of compounding.) Whether the annualized growth rate for a short period would really be indicative of average growth over the coming year depends on how much the variable in question is subject to short-term changes, such as seasonal factors or special developments.

The practice of buying and selling an interlisted stock on different exchanges (i.e. the Montreal Exchange and the Toronto Stock Exchange) in order to profit from minute differences in price between the two markets.

An indication by a trader or a dealer of a willingness to sell a security or a commodity; the price at which an investor can buy from a broker-dealer.

A mutual fund that splits its investment assets among stocks, bonds and other vehicles in an attempt to provide a consistent return for the investor.