A sales charge levied when mutual fund units are redeemed.

Many mutual funds apply a back-end redemption charge on the sale of units which usually begins 4 1/2 % to 6% in the first year and declines by 1/2% to 1% per year, eventually reaching 0% several years into the future. This charge may apply to the original purchase value or the market value when units are redeemed.

A mutual fund which has an investment policy of "balancing" its portfolio generally by including bonds and shares in varying proportions influenced by the fund's investment outlook.

An accounting of all the economic transactions between one country and the rest of the world over a given period. The balance of payments is composed of the current account and the capital account. In 1998, Canada's current account slipped to a deficit of $18 billion.

A financial statement showing the nature and amount of a company's assets, liabilities and shareholders' equity.

A repayment schedule for an issue of bonds wherein a large number of the bonds come due at a prescribed time (normally at the final maturity date); a type of serial maturity.

The rate at which the Bank of Canada makes short-term loans to chartered banks and other financial institutions, and the benchmark for prime rates set by financial institutions. Bankers' Acceptance: Short-term bank paper with the repayment of principal and payment of interest guaranteed by the issuer's bank.

Short-term bank paper with the repayment of principal and payment of interest guaranteed by the issuer's bank.

A unit for measuring oil production, equivalent to 159 litres.

A unit of measurement for comparing an amount of oil to its gas equivalent.

A phrase used to describe differences in bond yields, with one basis point representing one-hundredth of a percentage point. Thus if Bond X yields 8.5 per cent and Bond Y 8.75 per cent, the difference is 25 basis points. Same phrase is used when describing rise and falls of the dollar.

equipment to process or store crude oil from one or more wells

A stock market whose index of representative stocks, such as the Toronto Stock Exchange 300 Composite Index, is declining in value. A "bearish"investor believes share prices will fall. A rule of thumb is that when a market declines 20 per cent it is bear.

An individual who becomes entitled to a benefit upon the death of the policy or plan holder. Applies to life insurance, will, and registered account proceeds.

You "bequeath" (leave) an asset to someone in a will.

A statistical term used to illustrate the relationship of the price of an individual security or mutual fund unit to similar securities or financial market indexes. By definition, if a security trading in Toronto is exactly as volatile as the TSE 300, its beta will be 1.0; if it is more volatile than the index it will be above 1.0; if it is less volatile than the index it will be below 1.0. Betas tend to range from 0.5 to 2.0. Cyclical industries tend to have higher betas.

The price at which a buyer offers to pay for a security or property.

Single policy on the insured's property for (1) two or more different kinds of property in the same location; (2) same kind of property in two or more locations; (3) two or more different kinds of property in two or more different locations. Blanket coverage is ideal for such businesses as chain stores, all of whose property is covered with no specific limit on each particular property regardless of its location (thereby enabling the business to shift merchandise from store to store). (Barron's)

A stock-based mutual fund that invests in blue chip stocks (a type of growth fund).

Stocks with good investment qualities. They are usually common shares of well-established companies with good earnings records and regular dividend payments that are known nationally for the quality and wide acceptance of their products and services.

A standard number of shares for trading transactions. The number of shares in a board lot varies with the price level of the security, although in most cases a board lot is 100 shares.

A committee elected by the shareholders of a company, empowered to act on their behalf in the management of company affairs. Directors are normally elected each year at the annual meeting.

A long-term debt instrument with the promise to pay a specified amount of interest and to return the principal amount on a specified maturity date.

A mutual fund whose portfolio consists primarily of bonds.

An evaluation of the possibility of default by a bond issuer, based on an analysis of the issuer's financial condition and profit potential. Bond rating services are provided by, among others, Standard & Poor's, Moody's Investors Service and Fitch Investors Service.

The value of net assets that belong to a company's shareholders, as stated on the balance sheet. Book value of RRSP: The purchase price plus reinvested dividends. Not to be confused with market value.

A new issue of stocks or bonds bought from the issuer by an investment dealer, acting alone or with other dealers, for resale to clients. The dealer(s) risks its own capital in the deal in a bid to make higher profits.

An agent who handles the public's orders to buy and sell securities, commodities, or other property. A commission is generally charged for this service.

A business that employs brokers to enact transactions between securities sellers and buyers. There are three types of brokerages: Full-service brokerages, discount brokerages, and deep-discount brokerages.

A stock market whose index has been rising in value. A "bullish" investor believes share prices will rise.

The ebb and flow of the economy through successive stages of recession and recovery. Economic activity tends to fluctuate: Periods when real GDP is falling are called recessions; periods when real GDP is rising are called recoveries. Fluctuations in the economy's growth rate are inevitable. However, economists disagree about how effective government fiscal policy and monetary policy can be in smoothing out those fluctuations.

Using investment as collateral, a portion of the cost is borrowed from the investment dealer or stock broker.