The amount returned to bondholders at maturity -- $5000 for most municipal bonds and $1000 for most government and corporate bonds. The stated face value of a bond or stock as assigned by the company's charter and expressed as dollars and cents per share. Par value of a common stock usually has little relationship to the current market value and so "no par value" stock is now the norm. Par value of a preferred stock is significant as it indicates the dollar amount of assets each preferred share would be entitled to in the event of winding down the company.

Per person. Numbers such as GDP tell much more about our living standards when they are measured per capita. For example, if GDP grows but the population grows at a faster rate, average income actually declines. Looking at GDP per capita would make this apparent since, in such a case, it too would decline. Canada's GDP per capita in 1996 was about $26,658. In 1996, the last year for which all international data are readily available, Canada stood seventh among the G-7 industrial countries, plus Russia.

Certificates awarded to employees in lieu of stocks. While not actual shares of a company, phantom stocks act as bonuses based on the increases in value of the company’s shares. Often in small operations, and closely held companies. Also known as shadow stocks.

A group of securities held or owned for investment purposes by an individual or institutional investor. An investor's portfolio may contain common and preferred shares, bonds, options and other types of securities.

A class of share capital that entitles its owners to certain preferences over common shareholders such as a fixed rate of prior dividend and return of the stock's par value in a liquidation. Preferred shares usually only have voting rights when their dividends are not being paid.

The amount paid to the option seller or writer for assuming the risk that he or she may have to buy (for puts) an underlying security for more than the market price or sell (for calls) at less than the market price. The amount by which a preferred stock or bond may sell above its par value. In the case of a new issue of bonds or stocks, premium is the amount the market price rises over the original selling rice. May also refer to that part of redemption price of a bond or preferred stock in excess of par.

The current worth of an amount to be received in the future.

Provides regular payments of principal and interest to provide the annuitant with a guaranteed income and purchased from non-registered funds.

The market price of a common stock divided by annual earnings per share. Also called P/E ratio or P/E multiple. For instance, if a company's net earnings amount to $1million and it has one million shares outstanding, its earnings per share are one $1. If its shares are trading at $10, then its P/E ratio is 10 to 1. It indicates what investors are willing to pay for one year of a company's earnings per share.

A new security issue, or one that is made available to investors for the first time.

The rate of interest charged by chartered banks to their most credit-worthy borrowers.

The person for whom a broker executes an order or a dealer buying or selling for his own account. The term also may refer to a person's capital or to the face amount of a bond.

The term used when the government transfers ownership of its Crown corporations and other corporate holdings and assets to the private sector. The benefits of privatization can include improved efficiency of the privatized companies as they operate under market discipline; enhanced competition and investment; more efficient government; and the opportunity for Canadians to invest as shareholders.

Broadly speaking, the efficiency with which people and capital are combined in the economy. This definition of productivity is called Total Factor Productivity. Another common measure of productivity is labor productivity or output (GDP) per worker. This is not a measure of how hard people work. A number of factors can cause labor productivity to change. For example, better education, training, management, equipment and technology will also tend to result in more production per worker.

Key to real improvements in our standard of living, because as our labor, capital, etc. produce more, there is more to consume. Productivity growth in Canada was high through the post-war years and into the 1970s, but overall it has slowed sharply since then.

An employer-sponsored retirement plan that allows employees to share in company profits. The employer makes contributions in profitable years to individual employee accounts. The account grows until the employee retires or leaves the company.

Selling to take a profit; the process of converting paper profits into cash.

A document which a public corporation is required to offer to the public revealing pertinent financial information.

In options trading, a put is the right to sell a specified number of shares of an investment instrument at a set price by a certain date. Investors buy puts when they believe the price of a security is going to go down (presumably below the strike price)