Any investment that may be difficult to sell quickly at a price close to its market value. Examples include commercial real estate and limited partnerships.

Cash received. Sources include employment, business, rent collected, investments and pension.

A financial statement depicting and comparing an individual’s income and expenses, resulting in either a surplus or a shortfall over a stated time period.

Postponing the taxation of income until a point in the future.

Mutual funds that invest primarily in fixed-income securities such as bonds, mortgages and preferred shares. Their primary objective is to produce income for investors, while preserving capital.

The process of diverting taxable income from an individual in a high tax-bracket to one in a lower tax bracket.

Stocks of stable companies that have a low to moderate risk and represent relatively conservative investments. If you want to invest for both growth and current income, buy income stocks because of their potential for regular dividend payments. Income stocks tend to be in stable service industries, such as telecommunications and utilities that can offer both higher-than-average dividend payments and the possibility of capital appreciation.

The act of increasing a payment by a predetermined amount at predetermined intervals.

A mutual fund that matches its portfolio to that of a specific financial market index, with the objective of duplicating the general performance of the market in which it invests.

A condition of increasing prices. In Canada, inflation is generally measured by the Consumer Price Index.

Also known as "IPO." When a private company "goes public," it offers shares on the market for the first time in an initial public offering.

All directors and senior officers of a corporation and those who may also be presumed to have access to inside information concerning the company; also anyone owning more than 10 per cent of the voting shares in a corporation.

A filed report of all transactions in the shares of a company by those considered being insiders of the company. Each is to be filed to applicable securities commissions by the tenth day of the month following the transaction, although in practice many insiders file much later without any action taken by regulators.

The payments that a borrower is obligated to pay to the lender for the use of the fixed sum of money.

The growth rate of your money over a time period relative to the amount invested. IRR, which compares the profit to the amount invested, is expressed as a percent gain or loss for easy comparison with other percent changes for the same time period. The IRR calculation is based on continuous compounding.

This is the IRR expressed as an interest rate for easy comparison with other interest rates for the same time period.

A mutual fund that invests in securities of a number of countries.

An agency of the United Nations, established in 1944 along with the World Bank to promote post-war economic recovery, development and trade -- principally by helping to ensure a stable system of international exchange. The IMF has evolved since its inception, but remains focused on overseeing the international monetary system, including balance of payments stability (e.g., the resolution of debt problems) and encouraging member governments to implement appropriate macro-economic and structural policies. Investment Tax Credit: A tax credit available for investments in scientific research and experimental development and in certain regions. Labor Force: The number of people in the country 15 years of age or over who either have a job or are actively looking for one. The labor market is the market that determines wages and the number of jobs based on the supply and demand for workers.

Publicly traded stocks for companies based outside Canada. These investments involve greater risks than Canadian investments.

A call option is in-the-money if its strike price is below the current market price of the underlying security. A put option is in-the-money if its strike price is above the current market price of the underlying security. The in-the-money amount is the option's intrinsic value.

The amount by which the price of a warrant or call option exceeds the price at which the warrant or option may be exercised.

The use of money for the purposes of making more money, to gain income, increase capital or both.

A corporation or trust whose primary purpose is to invest the funds of its shareholders.

A firm or individual, which furnishes investment advice for a fee.

A term generally interchangeable with "mutual fund."

Income from investments rather than from work. It includes interest, dividends, capital gains distributions, capital gains (and losses) on sales, etc.

The collection of assets that you have that are not used for everyday living expenses or short-term expenditures. This portfolio can contain taxable and tax-deferred investments. Examples of tax-deferred investments include RRSPs and RPPs. Examples of taxable investments include: GICs; money market accounts; savings accounts; mutual funds; stocks and bonds; annuities; real estate (other than your personal residences); collectibles; precious metals; futures; and commodities.

The number of securities of a company outstanding. This may be equal to or less than the number of shares a company is authorized to issue.