Personal savings expressed as a percentage of disposable income -- the income remaining after income taxes and payroll taxes are accounted for. The flow of personal savings adds to the stock of personal wealth.

The redistribution to the public of a block of shares owned by an existing shareholder (not from the corporate treasury).

A stock mutual fund that invests in only one industry.

Provincial legislation regulating the underwriting, distribution and sale of securities.

A process under which non-marketable assets, such as mortgages, automobile leases and credit card receivables, are converted into marketable securities that can be traded among investors.

These funds guarantee that, regardless how the fund performs, at least a minimum percentage (usually 75 per cent or more) of the investor's payments into the fund will be returned when the fund matures.

A document signifying part ownership in a company. The terms "share" and "stock" are often used interchangeably.

The amount of a corporation's assets belonging to its shareholders (both common and preferred) after allowance for any prior claim.

Rates applying on money lent for a period of 10 years or more are called long-term rates. Those on money lent for a period of less than three years are considered short-term rates. Typically, long-term rates are higher than short-term rates because lenders want a higher return for tying up their money for a lengthy period.

The sale of a security made by an investor who does not own the security. The short sale is made in expectation of a decline in the price of a security, which would allow the investor to then purchase the shares at a lower price in order to deliver the securities earlier sold short.

An abbreviated and simplified prospectus distributed by mutual funds to purchasers and potential purchasers of units or shares (see prospectus).

A method whereby a company purchases a given percentage of its bonds or shares as per agreement in the trust indenture or prospectus. This provides the investor with some degree of liquidity, knowing that the company must purchase shares each year. Specialty fund: A mutual fund that concentrates its investments on a specific industrial or economic sector or a defined geographical area.

Stock issued by a company with less than $500 million in market capitalization. Investment advisers sometimes recommend that investors interested in long-term growth invest in small cap stocks because they often they have the greatest potential for growth. However, these stocks tend to be relatively more volatile than stocks of larger companies and are less likely to pay dividends.

High- risk area of the market that provides only a handful of winners, but many losers.

Splits occur when a company issues more shares to its stockholders (such as two shares for one), or in the case of a reverse split, issues fewer shares (such as one share for two). For example, suppose you own 100 shares of the stock YUP, and they are currently valued at $20 per share. If the stock undergoes a 2-for-1 split, you will have 200 shares of stock valued at $10 per share. (The value of the stock changes so that the current values of the holding stays the same at the time of the split.)

The difference between the rates at which money is deposited in a financial institution and the higher rates at which the money is lent out. Also, the difference between the bid and ask price for a security.

A share of ownership, or equity, in a corporation. For example, if you buy 10,000 shares in a company with 1 million shares outstanding, you own 1 per cent of the company.

A public market for the buying and selling of public stocks.

Rights to purchase a corporation's stock at a specified price.

Mutual funds that are invested primarily in stocks. Balanced funds have both stocks and bonds in their portfolios, but for simplicity, you should include them here. Stock yield: the percentage of the dividend paid in relation to the price of the stock. For example, a stock selling at $40 a share with an annual dividend of $2 a share, yields 5 per cent.

An order to buy or sell a security if it reaches a specified price, known as the stop price.

An order to buy or sell a security at a certain price or better, only after it has reached the specified price.

An order to sell a security if it drops below the current market price.

In options trading, the strike price (also known as the exercise price) is the specified price for the investment instrument underlying a call or put. If the option is exercised, the underlying security is traded at the strike price.

The capital portion of a bond from which the coupons have been stripped. The holder of the strip bond is entitled to its par value at maturity, but not the annual interest payments.

A basic and permanent (as opposed to cyclical) change in the economy. Structural change results from changes in trading practices (e.g., because of technological advancement, changes in consumer behavior, the emergence of new competitors and trade liberalization). It may take the form of changes in the relative importance of particular industries, in the economic strength of regions, and in the occupational or skill mix of the labor force.

A financial contribution by government (including any form of income or price support) that also confers a benefit to the recipient (i.e., producers of goods or services or buyers of goods). Many types of government practices constitute a financial contribution, including traditional forms of subsidies such as grants and loans, as well as foregone revenues such as tax credits. Subsidies may also exist in preferential government procurement of goods.

A swap is a contract whereby two counterparties agree to a periodic exchange of cash flows for a given period of time based of a specified notional amount of principal. In an interest rate swap, the cash flows are denominated in the same currency. In a currency swap, the cash flows are in different currencies. Both types of swaps are used by the Government of Canada.

A group of investment dealers who join together to underwrite a share issue.