The theory that stock price movements are random and bear no relationship to past movements.

The total proceeds derived from the investment per dollar initially invested. Proceeds must be defined broadly to include both cash distributions and capital gains. The rate of return is expressed as a percentage.

A type of mutual fund withdrawal plan that provides investors with an income based on a percentage of the value of units held.

A mutual fund that invests primarily in residential and/or commercial real estate to produce income and capital gains for its unit holders.

The rate of interest on a loan or investment, excluding the effects of inflation. For example, with a nominal interest rate of seven per cent on a loan with inflation at two per cent, the real interest rate is five per cent (seven minus two). Lenders take into account the anticipated inflation rate in deciding what the nominal rate should be in order to obtain an acceptable expected real return. The real return, however, is uncertain because future inflation is uncertain. All things being equal, the higher the current inflation rate, the higher nominal interest rates will be. However, inflation is only one of a number of factors affecting interest rates. The credit worthiness of the borrower and the perceived risk of the investment are other major factors.

The stated rate of return less both the inflation rate tax considerations and the risk premium.

A gain is realized when an investment is sold for more than the purchase price. An investment that has increased in value, but has not yet been sold, has an "unrealized" gain.

The date on which you must be registered on the books of the company as a shareholder, in order to receive a declared dividend or to participate in voting, etc., as a shareholder.

Preferred shares or bonds that giver the issuing corporation an option to repurchase securities at a stated price. These are also known as callable securities.

The price at which bonds or preferred shares may be redeemed. The price is fixed at the time the securities are issued.

An international mutual fund that invests insecurities from one particular area, such as Latin America or the Far East.

The resource allowance, which was first introduced in 1976, provides an annual deduction to mining and oil and gas producers. It is calculated as 25 per cent of a taxpayer's annual resource profits, computed after operating costs and capital cost allowances, but before the deduction of exploration expenses, development expenses, earned depletion and interest expenses. The resource allowance was introduced in 1976 after Crown royalties, mining taxes and other charges related to oil and gas or mining production were made non-deductible in calculating taxable income. The resource allowance measure effectively allows the provincial governments room to impose royalties or mining taxes on the production of natural resources. The non-deductibility of these charges coupled with the resource allowance means that these provincial charges no longer affect the level of federal income taxes payable as they did when these charges were deductible.

Bonds or preferred shares that allow the holder to require the issuer to redeem the security before the maturity date.

expressed as a percentage, this is what your money earns when it is invested. Return calculations include both income investments and appreciation in the price of the investments.

A company's return on equity, or ROE, is a percentage that indicates how well stockholders' money is being used. To determine ROE divide accompanies net earnings by the common stockholders' equity. To determine common stockholders' equity, multiply the number of outstanding common shares by the price per common share. ROE is a useful tool to compare the financial health of different companies. Investors who want to see how a company is doing can compare its ROE to that of its competitors.

The dollar amount of your investment earnings divided by the dollar amount of your investment. ROI is expressed as a percentage. For example, if you have a $1,000 investment that earns $100 you will have a 10 percent return on investment: 100 (earnings) divided by 1,000 (investment) =10 (or 10 per cent).

Options granted to shareholders to purchase additional shares directly from the company concerned. Rights are issued to shareholders in proportion to the securities they may hold in a company.

The possibility of loss; the uncertainty of future returns.

A transfer of money from one retirement savings plan to another. You can roll over retirement savings when you change jobs. You are not taxed on the money that you directly roll over from one qualified retirement plan to another. Direct rollovers are permitted to allow people to maintain the tax-deferred status of their money. If you do not directly roll over your retirement savings account, your previous employer is required to withhold a percentage of the account balance for pre-payment of income taxes. Before leaving your former employer, ask them for instructions on how to handle a rollover (even if you do not yet have a new employer) in a way that will not trigger the automatic withholding.