A
Annual Report
A comprehensive document that public companies release annually, providing detailed financial information, management discussions, and insights into the company's performance and operations during the past year.Asset Allocation
The process of spreading your investments across different asset classes like stocks, bonds, and cash to achieve a balanced portfolio that aligns with your financial goals and risk tolerance.B
Balance Sheet
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It presents the company's assets, liabilities, and shareholders' equity, showing the balance between what it owns and what it owes.Bankruptcy
The legal status of an individual or entity that cannot meet its financial obligations and is unable to pay its debts. It often involves a court-supervised process to liquidate assets or restructure debts.Bear Market
A sustained period of falling stock prices, often characterized by pessimism in the market, low investor confidence, and economic uncertainty.Beta
A measure of a stock's volatility or risk in relation to the overall market. A beta of 1 indicates the stock moves in line with the market, while a beta greater than 1 suggests higher volatility, and a beta less than 1 suggests lower volatility.Blue Chip Stocks
Shares of large, well-established, financially stable, and reputable companies with a history of consistent performance and dividends.Broker
A licensed professional or platform that facilitates the buying and selling of securities, such as stocks and bonds, on your behalf in exchange for a commission or fee.Brokerage Fee
A commission or charge that investors pay to a brokerage firm for executing buy or sell orders on their behalf in the financial markets.Bull Market
A prolonged period of rising stock prices, typically accompanied by optimism in the market, high investor confidence, and strong economic fundamentals.Buying Power
Refers to the amount of money an investor or trader has available to purchase securities or assets. It takes into account cash reserves, margin, and credit lines.C
Call Option
A financial contract that gives the holder the right, but not the obligation, to buy a specific quantity of an underlying asset, such as a stock, at a predetermined price, known as the strike price, before or on a specified expiration date.Capital Gains
The profits realized from selling investments, such as stocks or real estate, at a higher price than what you initially paid for them.Collateral
An asset or property pledged as security for a loan. If the borrower fails to repay the loan, the lender can seize and sell the collateral to recover the outstanding debt.Commodity
A raw material or primary agricultural product that can be bought and sold, such as gold, oil, wheat, or copper. These goods are standardized and interchangeable with other goods of the same type.Compound Interest
The process of earning interest not only on your initial investment but also on the interest previously earned, allowing your investments to grow exponentially over time.Compounding
Refers to the process by which an investment earns interest or returns, and those earnings generate additional earnings over time. It's the exponential growth of an investment's value.Consumer Price Index
A measure that tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, representing inflation and cost-of-living changes.Consumer Surplus
Represents the economic benefit or surplus that consumers receive when they are able to purchase a product at a price lower than the maximum price they are willing to pay.Corporate Bond
A debt security issued by a corporation to raise capital. Investors who buy corporate bonds are effectively lending money to the issuing company in exchange for periodic interest payments and the return of the bond's face value at maturity.Corporate Tax
Tax imposed on the profits of corporations or businesses. It is typically levied on the company's income after various deductions and allowances have been applied.Covered Call
An options trading strategy in which an investor who owns the underlying asset (e.g., stock) sells a call option on that asset. This strategy can generate income in the form of the option premium but may limit potential gains if the asset's price rises significantly.Credit Bureau
A company that collects and maintains credit information on individuals and businesses. Lenders use this information to assess creditworthiness.Currency Exchange
Refers to the process of converting one country's currency into another at an agreed-upon exchange rate. This is commonly done for travel, trade, or investment purposes.D
Deflation
A sustained decrease in the general price level of goods and services, often resulting in reduced consumer spending and economic challenges.Deleveraging
Refers to the reduction of debt or the process of reducing financial leverage, often done to lower risk and financial instability.Depreciation
The reduction in the value of an asset over time due to wear and tear, obsolescence, or other factors. It is often recorded as an expense on a company's income statement.Depression
A severe and prolonged economic downturn characterized by high unemployment, decreased consumer spending, and a lack of business activity.Dilution
Occurs when a company issues additional shares, reducing the ownership percentage of existing shareholders. This can happen through stock offerings or the exercise of stock options.Diversification
An investment strategy aimed at reducing risk by spreading investments across different asset classes, industries, or geographic regions to create a balanced and well-rounded portfolio.Dividend
A payment made by a company to its shareholders, typically in cash or additional shares, as a share of its profits.Dividend Growth Rate
The annual rate at which a company's dividend payments increase over time. It reflects a company's ability to generate consistent dividend increases.Dividend Payout Ratio
A financial metric that represents the proportion of a company's earnings paid out to shareholders in the form of dividends. It is expressed as a percentage.Dividend Reinvestment Plan (DRIP)
A program offered by companies that allows shareholders to automatically reinvest their dividends into additional shares of the company's stock, often at a discount or with no commission.Dividend Yield
A financial ratio that measures the annual dividend income an investor can expect to receive from an investment, expressed as a percentage of the investment's current market price.Dollar-Cost Averaging (DCA)
An investment strategy where an investor buys a fixed dollar amount of a particular investment at regular intervals, regardless of its price. This strategy helps reduce the impact of market volatility.E
Earnings Call
A conference call or webcast held by a publicly traded company after it releases its quarterly or annual financial results. During the call, company executives discuss financial performance and answer questions from analysts and investors.Earnings Per Share (EPS)
A financial metric that calculates a company's profit per outstanding share of common stock. It is a key indicator of a company's profitability.Exchange-Traded Fund (ETF)
A type of investment fund and exchange-traded product with a diversified portfolio of stocks, bonds, or other assets, traded like a stock on stock exchanges.Expense Ratio
The annual cost of owning a mutual fund or ETF, expressed as a percentage of the fund's assets, covering management fees and other operational expenses.F
Fair Value
The estimated worth of an asset or liability in a market transaction between willing, knowledgeable parties. It is often used in financial reporting and valuation.First Home Savings Account (FHSA)
A registered savings account designed to help first-time homebuyers save for their first home. The FHSA allows eligible Canadians to save up to $8,000 per year to a maximum of $40,000. The account is tax-free, and the contributions are not tax-deductibleFiscal Year
A 12-month accounting period used by a company or organization for financial reporting and planning, which may or may not align with the calendar year.Fractional Share
A portion of a whole share of stock. Investors can buy fractional shares, allowing them to invest in high-priced stocks with smaller amounts of money.Free Cash Flow (FCF)
The cash a company generates after deducting capital expenditures (CAPEX) from its operating cash flow. It represents the funds available for investments, debt reduction, or dividends.Fundamental Analysis
A method of evaluating the investment potential of a company by analyzing its financial statements, earnings, revenue, management, and overall health.Futures Contract
A standardized financial contract that obligates the buyer to purchase, and the seller to sell, a specified quantity of an underlying asset at a predetermined price on a future date.G
Growth Investing
An investment strategy that focuses on selecting stocks or assets expected to experience above-average growth in earnings and value. Investors in growth stocks are often willing to accept higher risk for the potential for significant capital appreciation.Guaranteed Investment Certificate (GIC)
A low-risk, interest-bearing investment product offered by financial institutions. It provides a guaranteed return of principal and interest over a specific term.H
Hedge Fund
An investment fund managed by professional portfolio managers, often with a focus on alternative investments and strategies. Hedge funds may seek to generate returns regardless of market conditions.
